Life is very unpredictable and so is our health; we never know when our life could come to an end. We have to come across various uncertainties that might result in good or bad outcomes. Therefore we should always be prepared to face any circumstances that might arise by having certain protection against it. Having life insurance cover can help you protect and secure yourself and your family from any unforeseen events.
If you feel that you are fit enough and have no need for life cover then let me tell you that you are wrong. If you are the only person earning in your family and your family is totally dependent on you then you can imagine that if something happens to you how difficult it would be for your family to manage. Your dependent family will suffer both emotionally and also financially. So, if you have life insurance coverage then you can help your family to manage even when you are not there.
Life insurance is nothing but a contract that a person makes with insurance company where the company agrees to pay a specific amount to the beneficiary of the policy holder after their death. The policy holder needs to pay regular payments based on the policy taken. The life insurance policy mainly falls under two main categories
- Protection policy: the main purpose of taking such a policy is that it is used to provide a lump sum amount to the beneficiary of the policy holder after their death. The most common form of this policy is term insurance.
- Investment policy: here the main aim is to increase the growth of capital amount by making regular payments. The most common forms of this policy are variable life policy and universal life policy.
Benefits of life insurance:
There are various benefits that you can get from the life insurance policy such as
- Risk cover: it helps you in securing the future of your loved ones when you might not be present to resolve their financial problems.
- Protection from healthcare expenses: the insurance policies also offer benefits over critical diseases and the expenses of hospitalisation.
- Long-term investment: the insurance policy having various rules and regulations ensures that the holder invests over long-term investments and does not focus on short-term profits.
- Tax benefits: most of the insurances plans offer the holders attractive tax benefits over their policy
- Flexibility to get easy loans: the policy holder can easily get the loan approved against his insurance policy to meet any of the requirements that might arise in the future.
Therefore by having an insurance policy you can secure not only your but also your family’s future. If in any month you face problem in paying the amount for the policy due certain financial crisis then you can opt for payday loans and continue the process.
My name is Alicia. I am a tech writer from UK. I am into Finance. Catch me @financeport