Life Insurance

Financial obligations could include funeral expenses, unsettled medical bills, mortgages, business commitments, meeting the college expenses of the children, and so on.

Insurance is designed to protect a person and the family from disasters and financial burdens. There are many kinds of insurance of which, the basic and most important is considered to be life insurance.

How much insurance a person needs would vary, depending on lifestyle, financial needs and sources of income, debts, and the number of dependants? An insurance adviser or agent would recommend that you take insurance that amounts to five to ten times your annual income.

As an important part of your financial plan insurance provides peace of mind for any uncertainties in life.

1.   Life insurance correctly planned will on premature death provide funds to deal with monies due, mortgages, and living expenses. It offers protection to the family you leave behind and serves as a cash resource.

2.   It secures your hard earned estate on death by providing tax free cash which can be utilized to pay estate and death duties and to tide over business and personal expenses.

3.   Life insurance can have a savings or pension component that provides for you during retirement.

4.   Some policies have riders like coverage of critical illness or term insurance for the children or spouse.

5.   Having a valid insurance policy is considered as financial assets which improves your credit rating when you need health insurance or a home loan or business loan.

6.   In case of bankruptcy, the cash value as well as death benefits of an insurance policy is exempt from creditors.

7.   Life insurance can be planned such that it will cover even your funeral expenses.

8.   Term life insurance has double benefits, it protects and you can get your money back during strategic points in your life.

9.   Insurance protects your business from financial loss or any liabilities in case a business partner dies.

10. It can contribute towards maintaining a family’s life style when one contributing partner suddenly dies.

See it more at wikipedia