The Importance of Life Insurance
"Driving race cars is risky. Not having life insurance is riskier. It means leaving your loved ones to suffer financially if something happened to you."
- Danica Patrick, professional racing driver
Life Insurance isn’t about death, it’s about survival. Survival in your old age if you live and survival for your family if you don’t. So yes, this is as important as it gets.
But life insurance is much more than stowing away cash. So much more. Let’s see how much.
First, let’s get the basics right.
What is Life Insurance?
Life insurance, in simple words, is an agreement between an insurance policyholder and an insurer in which the insurer agrees to pay a certain quantity of money to a selected beneficiary in the event of the insured person's death.
Throughout the term of the policy, the policyholder pays recurring sums known as premiums, and the insurance company provides a specified amount of money in the form of income to a selected beneficiary following the policyholder's death. It safeguards your family's finances.
According to a survey conducted in 2023 by Life Happens and the LIMRA,
52% of respondents said they had life insurance in 2023, compared to 50% the year before.
A record high of 30% of customers have stated that they plan to purchase life insurance in the future.
Financial support for funerals, burials, and other end-of-life expenditures is the main reason people get life insurance, according to another LIMRA study.
Life Insurance
Do You Need it?
What Are the Benefits Of Life Insurance
Life Insurance protects you and your family in more ways than one. It also provides many more benefits to the policyholder. Here’s a look:
Safety Net
A whole life policy's life insurance payout serves as a financial safety net if you have dependents, a family, or a company. It's crucial protection that you can rely on to support your family in times of need.
Income Replacement
With whole life insurance, you can ensure that your loved ones have the resources necessary to pay off household debt, pay for childcare, healthcare, and other necessities, as well as to help maintain a family business and pay the mortgage.
Protect Your Child's Future
Life insurance policies provide your child with the best possible future, even in the event of your death. Child education plans assist you in setting aside money for your child's future educational needs.
Ease the Burden of Debt
You should consider purchasing a term plan if you have already purchased a loan. It is the least expensive option to cover any debts or loans owed by the placeholder, relieving your dependent from the burden of debt.
Security for Dependent Spouse
It is wise to get a life insurance policy if your spouse is financially dependent on you. This will guarantee that, in the event of your absence, your spouse will lead a comfortable, self-sufficient existence.
Retirement and Pension Plans
These insurance plans will help you build a pension income for your future.
Living Benefits
In some circumstances, the death benefit can be accessed while the beneficiary is alive. This has helped many pay for terminal, chronic, and critical illnesses.
We will be discussing all these in future blogs so stay tuned!
Do You Need Life Insurance?
Yes, you absolutely do!
Which policy should you buy?
I would love to put my 30 years of experience in Life Insurance to create the best policy mix for you. Talk to me and let’s get the best policy for what you and your family need.
