Know How Life Insurance Can Protect Your Family
Whether you are young or old a life insurance is a must for everyone. A life insurance cover protects your family in times of crisis. Despite the benefits, only 10% of the Indians are up for life insurance. Life insurance is not considered as a good form of investment in India. Rather than this, people prefer investing their sum in mutual funds, stocks, FDs, etc. Life is unpredictable. When you are the only earning member of your family then it becomes very important for you to secure your family’s future. Even if you die an untimely death your family expenses, debts, and other stuff can be managed.
Benefits Of Having A Life Insurance Policy
Family can be cared for after your death
The best part of life insurance is that it looks after your family’s finances after you're gone. When your family is entirely dependent on you then life insurance is a much-needed thing. You must have wanted your kids to receive the best of education but for that they require money. After you are gone your life insurance is going to be their financial support. You must have a partner whose needs are on the priority list too. Therefore, here is your life insurance looking after every kind of bills even after you are dead.
Payment of debts
Maybe during your lifetime, you must have applied for a home loan, car loan, education loan, loan on credit cards, etc. But after your death, you leave your family behind in their time of crisis. As everyone is unemployed therefore none is going to pay the debt for them. If you make the right decision and happen to select the right set of insurance policy then it is going to cover all your family’s debts after your death.
Purchase life insurance at a young age against a cheap price
Not every young lad is in requirement of a life insurance policy. A person won't even require one when they are already dependent on their parent’s. But there are young lads who have a family to feed or it might be so that they have taken an education load along with their parents. In that, you can consider making a purchase of a life insurance policy. If you are single then the coverage costs for you would be lower. Insurance agents will try to sell you the wrong policy. So, beware of that. You can approach a financial planner to analyze and evaluate your current financial status. Estimating the cost of your assets an insurance policy can be purchased. Even if you are not married but there will be dependent on you like your parents and siblings. The best part about getting life insurance at a young age is you are hale and hearty and your family health conditions are not that bad. If this is the case then you can receive great insurance policy rates.
Business is paid heed to
Life insurance policies take proper care of your family as well as your business. When you own a business with partners and you die an untimely death then your partners can enter into a buy and sale agreement. They will purchase your share of the business against a sum and hand it over to your family. But none of your family members will receive a stake in your business. Two types of life insurance policies are available for business owners namely a term insurance policy and a life insurance policy. You are already aware of the death benefits provided by these insurance policies. At the same time, they help to strengthen your family’s financial position after your death.
Insurance policies safeguard your family for a specified period of time. It can be for 10, 20 and 30 years. The policy would be paid out to your family members during that period of time and only if you die. The insurance policy will expire at a particular period. If you are still alive during that time then your family receives none. An investment cum protection plan provides you with a particular sum of money as soon as the term of the insurance is served. This sort of plan does provide you with protection, but you cannot expect the cover to as high as other plans.