There are many reasons why anyone should seriously consider the importance of a Life Insurance policy. This is due to the fact that they may change the life for you and your immediate family for an extended period of time with sound insurance planning.
1. As Income Replacement
In the event of your death, your family will lose their financial support especially if you are the major bread-winner of the family. When you die, you lose the wages as well as the retirement savings contributions which you would get. he role of the life insurance here serves as an income replacement which would get your family to move on with their lives without any financial stress.
2.House mortgage and Debt payoff
Life insurance can be applied to pay off your mortgages, credit card debts or any other types of debts , which will definitely become a burden for your family if you have no plan to settle them after you are gone.
3. Children Education fees
If you have children who will be in college in the next 10-20 years, then planning on how you can leverage Life insurance coverage for part of your children’s education needs, or all of them are essential. Bear in mind that education is very crucial for anyone in this society. It is the one last thing which you should help your children with if while you still can.
4. Emergency Fund
Emergencies include health and medical expenses, layoffs, retrenchments which are not planned. Life insurance is definitely a great savior here in time of emergencies and critical situation
5. Charitable Giving
If you don’t have any family or any debt obligation, you can always use your permanent life insurance for some great means of yours such as charitable giving. Identify those charity organizations which you would like to make contributions to and identify them as your beneficiaries.
6. Final Expenses for yourself
These can be those final expenses which need to be taken care of even after you are gone from this world. Such as the charges for your funeral and Burial arrangement, your large medical or nursing home bills during the last 2-3 months of your life if you are dying with serious illness. Life insurance is a fine candidate as far as these unexpected bills is concerned.
Whatever your main objectives are for those life insurance plans that you currently have, we are sure that they will bring you the financial security and peace of mind which you are looking forward for. Thus make sure you assess your insurance policy seriously and make sure they are adequate to cover what you need.