10 Important Reasons For Purchasing A Life Insurance Policy
Author: Donald Saunders
Category: Insurance
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Insurance in general is designed to protect you from disasters and their financial burdens. There are many different sorts of insurance of which the the most important of these is considered to be life insurance which makes financial provision for your dependents after your own death.
Since there are a number of financial commitments that you need to meet in life you need also to provide something even in death to secure the family home, to assist the family to meet expenses for a while, to provide for dependent parents or to provide security for your spouse and children.
These financial obligations could well include such things as funeral expenses, outstanding medical bills, mortgages, business commitments and providing for the college expenses of the children.
Just how much insurance you need will vary depending on your lifestyle, financial needs and sources of income, debts, and the number of dependents you are responsible for. In general you ought to have insurance coverage that amounts to five to ten times your current annual income.
As an important part of your financial planning, whole life insurance provides you with peace of mind for any uncertainties in life.
1. Life insurance correctly planned will provide funds in the case of unexpected death to deal with debts, mortgage payments and day-to-day living expenses. It give protection to the the spouse and children you leave behind and serves as a cash resource.
2. It gives security for your estate after your death by providing a tax free cash sum which can be utilized to pay estate and death duties.
3. Life insurance policies can also include a pension or savings component which provides for you in retirement.
4. Some plans include riders such as restrictions on the coverage of critical illness or term insurance for the children or spouse. There are certain rules regarding eligibility for riders that you will have to determine clearly.
5. In case of bankruptcy the cash value, together with the death benefits, of an insurance policy is exempt from creditors.
6. Having a valid life insurance plan is considered as holding a financial asset which improves your credit rating when you arrange health insurance or a home loan or business loan.
7. Term life insurance has double benefits as it protects and you can also your money back during strategic points in your life.
8. Life insurance can be planned such that it will even cover the expenses of your funeral.
9. Insurance can be used to protect your business from financial loss or any liabilities in case a business partner dies.
10. It can contribute towards preserving a family’s standard of living if one partner suddenly dies.
Insurance forms a vital part of sound financial planning but you do have to assess both your personal risk and your longer term commitments.
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Keywords: life insurance, life insurance quotes, whole life insurance, term life insurance
View Count: 479
Date Submitted: 3/24/2009
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