Life Insurance

 

Tips For Life Insurance Cover During Different Stages

If you died tomorrow, would your family have enough money to pay for your funeral, medical bills, debts, taxes and lawyers’ fees? What about money for food, rent/bond, healthcare, school fees and clothing? Would your spouse or life partner be able to provide for your children’s college education or university studies as well as for their own retirement years?

Whether you are single, married, divorced, widowed, with or without children, whether you’re young or not so young, for each phase of your life there is a good reason to take out life insurance. Here’s why.

If you are single

If you are single, chances are that there aren’t many people financially dependent on you. There are instances however where a single person carries huge amounts of debts that he or she does not want to pass on to relatives. And there are scenarios where single people financially support siblings or parents. If you are single and anticipating to get married and have children at some point in the future, you may want to start taking out life cover already. Your best chances at good premiums and excellent cover are when you are young and healthy.

If you are married

If you are married, you are probably sharing everything with your spouse, including your financial commitments. And even though you may not have children yet, life insurance is still something to give serious consideration. Imagine if you passed away tomorrow. Would your spouse manage financially without your income? Also, if children are in your future plans, it’s a good idea to get life cover before the mom is pregnant, as some insurance companies don’t approve life insurance applications until the baby is born. They do this to avoid possible health complications.

If you are married with children

To meet financial commitments, especially when there are children involved, most families depend on two incomes, one of which would fall away if you were to pass away prematurely. Make sure you are covered by life insurance so that your family can continue to live comfortably and carry out your future plans, even when you are no longer around.

If you are a single parent

If you are a single parent, you are the breadwinner, the caregiver, the cook, the private chauffeur and many more things. Most single parents however do not have any life cover at all. But with such incredible responsibility resting solely on your shoulders, you need to ensure that your children’s financial future is safeguarded if you are suddenly no longer around, and the best way to do this is with proper life insurance cover.

If you have grown up children

Just because your kids are done with college and your house is paid off, that does not necessarily mean that your savings are enough to carry your spouse through the autumn years comfortably. He or she could still outlive you by many years, and you may probably also want to leave your children or grandchildren something after you pass away. Think about it.

If you are retired

If you pass away during your retirement years, your heirs could be faced with a large and unexpected estate tax payment. The proceeds of a life cover policy would be able to take care of these taxes as well as other debts.

Reasons for Life Insurance Money

Life insurance guarantees you and your family financial stability and should not be overlooked. There are different types of life insurance in the market today. With the many options available, it is certainly confusing to choose the best insurance.

Reasons why you need a life insurance

1. To service your debts.

Life insurance can be used to pay off your credit card debt, mortgages, tuition fees among other debts. Let’s face it, we have no control over the uncertainties of life or the unforeseen events. For example, suppose you have secured a student loan or a business loan that will help you build your business, and that unfortunately, you will die before repaying the debt. This can put more stress on your family and relatives who are already mourning your death and worst of all struggling to increase their funeral costs. To avoid this additional burden, you should consider buying an insurance plan early in life.

2. You receive an inheritance for your children and spouse.

Buying a life insurance from a reputable and reliable insurance company ensures that your children will benefit from inheriting their lifetime savings. It will help you to leave a legacy to create additional wealth for your loved ones. This inheritance can help pay for your children’s tuition or pay for other emergencies that can arise when your family financially takes hold.

3. You benefit from accelerated services.

Most couples have support in the event of a financial crisis. However, a single person is more likely to have no other source of finance than your personal resources. This can be very uncomfortable in case of a sudden serious illness

With most insurance policies being sold today, they have provisions that will accelerate a large percentage of the death benefit when you diagnose a terminal condition. These acquired benefits can be used to pay for the expensive medicines.

4. Provides financial security for your loved ones.

As a loving, caring and responsible parent, you need to make sure that your children are well cared for if left behind. Extra coverage is therefore of utmost importance while having children at home. Definitely no amount of money could replace someone, but it would bring you peace of mind knowing that you left your children with some cash to strengthen them. It’s the last thing you should do to help your children while they still can.

5. Donations to charity

If you are single and have no debt or family responsibilities, your permanent life insurance can be used to fund charities. Consider it as your last good deed before you send it out. You could touch a soul or change someone’s life forever with a cheap insurance plan from a certified insurance company and they will live to remember you, even after you’ve left.

The benefits of Life Insurance

Are you wondering about taking a life insurance plan? Do you know the beneficial outcomes related to life insurance? While there are people who find life insurance plans useless, there are plenty who are benefited with the same. Even if you are the one who started working on your career goals, or is looking after the family welfare, then life insurance is a much-needed investment for you, to stand out in the difficult times. You alternatively take a step in protecting you, your family and loved ones, with the most appropriate plans.

Look at some of the fascinating benefits of life insurance, which you must have been unaware of:

Provides life cover:

Apart from paying the credited bills, getting the home possessed, and losing the source of income for the family, your loved ones will also have to go through hardships of survival in your physical absence forever. However, having a sound life insurance policy saves you from these mishaps. Go for a life insurance plan, which takes care of your family needs and their well-being, at a better wealthier pace.

Assured return of the investment:

The sum invested in life insurance policies is safe and the users attract bonus on almost any life insurance policy that they take. You can recover the invested sum at the end of the term or after the person’s demise. It is, therefore, an assured medium of your protected savings which can be used to meet your long-term financial goals.

Your certainty to get loan:

When you invest in a sound life insurance plan, you can easily acquire loan to meet any source of future emergencies. These emergencies can be paying for your debts, buying a new house, sum needed for your child’s education, your child’s marriage, etc. You can obtain a loan amount which is proportional to the percentage of cash value that you put under your life insurance policy.

Tax benefits:

If you are a salaried person, life insurance premiums come along with rebates in your year-end financial statement, where you get tax reliefs. Under certain heads, you can portion tax relief of up to 1, 00,000 as listed in the Section 80C, which includes your pay bet for the life insurance premiums.

Guaranteed income in regular intervals:

With the effective life insurance plan, you are assured of receiving regular income which comes in recurring intervals. You can use this income to pay for the rent of your living and your regular and timely expenses. Also offering you the support in the form of a long-term investment, the life insurance policy reimburses the earnings which stops when the earning member of the family is passed away.

It is important to note that life insurance policy has become one of the basic necessities for a secured life plan. The moment you take a sound life insurance plan, you can inculcate a better state of mind where you experience peace and liberty. This has been tremendously beneficial in supporting higher levels of comfort to you and your family members.

Tips for Lower Life Insurance Premiums

You have made the best possible choice for your family and loved ones. Not only will they be taken care of if you pass away, but your children. You need to answer truthfully. If you say that you are not a smoker and your post-mortem reveals that you are a smoker and died from smoking-related causes, the insurance company may not pay out as you were not honest on your application. This is why you should always honestly answer all the questions on your policy questionnaire. However, all is not lost, as there are ways to live a healthier lifestyle, and it’s not just to get a lower premium, but to ensure that you have a long, happy and healthy life.

Smoking

Smoking is a huge health risk, and smokers generally pay much higher life insurance premiums than non-smokers. Although it may seem like a difficult habit to crack, it’s totally worth it to do so. Not only will your insurance premiums be lower, but you will find that your health will start to improve day by day. Non-smokers have clearer skin, are fitter, have less breathing and chest related illnesses and a longer life expectancy. You will be less susceptible to heart, lung and throat diseases, which is the reason why non-smokers will pay a lower life insurance premium.

Exercise

Your potential life insurance company asks you ‘how often do you exercise?’ Your first reaction may be to stammer ‘all the time!’ But lying about this won’t do you any good either. People who exercise are promoting good heart health, and a fit, strong body, which in turn lowers their risk factor and thus their life insurance premium. Get to the gym; even if you are only able to work out or take a jog for half an hour each day, it will do wonders for your heart, lungs and fitness levels. Not only this, but your weight will stay in check and you will be less of a risk factor.

Alcohol

The healthy intake of alcohol is no more than one unit per day, so if your liquor intake is heftier than this, it is a good idea to consider cutting down, not only for the sake of your health, but your insurance premium too.

Your potential insurer will ask you a range of questions about your family’s health history and your personal medical history too. As previously mentioned, be honest and truthful. If you are going to take out a new life insurance policy, it’s time to reassess your lifestyle habits so that you are the healthiest you can be, not only for your premium, but for your loved ones