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Importance Of Life Insurance

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importance of health insurance

Importance of life insurane.
Simply, life insurance is a contract between a client and the insurance company who in turn render the services within the agreement. Life insurance provides a relief to a beneficiary when an unfortunate situation occurs to their loved ones. The life insurance coverage is provided by the employers however you can opt to purchase the coverage through an agent
The importance of life insurance and the way it helps the beneficiary includes;
*The replacement of income with a non taxable benefits in an unfortunate death cases.
*The life insurance coverage helps in reducing the financial burden on your family members when you no longer with them.
* In Cases of Education, it covers for your children’s educational tuition and other related fees.
*Payment of mortgage and other debts.
The Importance of life insurance.
Life insurance is an important aspect of life that every individual should consider more especially those with families with a high financial burden on them. some times, an unexpected and unfortunate life scenario may occur and this outlines the need to have a life insurance cover that guarantees you peace of mind. It may be a worse case for people that travel outside their versinity to work. In this case, they now face the problem of territorial barriers as most insurance policy may not provide a cover for you when you are far away. It is recommended that for an individual working constantly, the amount of his life insurance coverage should about 6-10 times higher than his anual salary. So, the amount for a life insurance coverage is based on many factors e.g mortgage payment, taxes, childcare cost in some cases and the expense of your children’s education.
As an Adult, one thing you should always bear in in mind is how you can cater for your family needs beyond your lifetime. It may be common to think about a single goal in your life but you also have to remember the welfare of your family and work towards achieving that goal. In our life scenario you work towards ensuring that the welfare of your family is well taken care of within a short time while your long term goal is to make a wise and meanful investment
So that when you have your own children and they grow up to the age of education you can fund them with ease.
As you pan for the future, lots of people understand the fact that it is an important thing to have a will that guide the way and manner in which your properties are distributed among your children. However it is important to note that the essense of life insurance is to help in planning for your family when you are no longer there. Perhaps this is the best you can use to avert any financial issue.
When you are about to buy a life insurance coverage, you should determine the type of policy that best suites you and your family. It may be a daunting task but you should and choose a policy that will be convenient for you.
We shall discuss on some life insurance policy so that you compare them and choose the one that best suites you.
1. Whole Life Insurance: whole life policy is a type of policy that has a premium that stays throughout the life of the policy. The premium seems to be higher than risk of passing on in the early years, they have the potentials of accumulating the value of money and it will be invested into the company’s investment category. As client, you can borrow money from the cash value or you can decide to leave your policy. your access to borrow from the cash value may in one way or the other reduce the benefits you will get
2. Variable life insurance: variable life insurance policy is a policy wereby the clients recieves a death benefits at the sam rate with other permanent life insurance cover, in this plan you have the ability to control the way your money is invested. You can invest it on money market funds, bonds and stocks. There is a potential that your cash value will grow however it aslso has more risk associated with it. If it happens that your investment performs poorly, your cash value as well your death benefit will reduce.
Some policies guarantee clients that death benefits will not fall to a certain level. In this type of policy, the policy does not change and are fixed. This policy combines with universal life insurance policy to give clients investment optins as well as adjusting there premiums and death benefit.

3. Term Life Insurance: term life insurance is the easies, the most affordable and cheapest health insurance policy. This type of policy can be purchased for a desired period of time. If the client passes on unfortunately with the period the policy is active, the insurance company will pay the beneficiaries the face value of the policy. The policy can be purchased between 0-30 time spans. It can be renewed annually without the need of an insurability proof, but with each renewal of the policy the premium may increase
(Photo Credit:yourmoney.com)

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