Life insurance or life assurance as often called is a contract between an insurance policy holder and an insurer or assurer in which the insurer promises a designated sum of money to a beneficiary in exchange for premium, upon the death of the insured person. Other events such as terminal or critical illnesses can also trigger the contract. This premium can be paid either in regular intervals or as one lump sum.
Life insurance is one of the few topics people even want to talk about, much less go out of their way to even look up and research about. It is one of those things every individual must have but far too few people actually have. Below are eight key reasons why you need life insurance.
1. Nobody knows when it’s time to go.
Death can happen, any day, any time and by any means. It could be natural or man influenced. Life insurance helps cater for your loved ones and family after you are gone. It helps with payment of bills, mortgage and even college costs for loved ones and family.
2. High cost of funerals.
Funerals are expensive. It costs about $7,000-$10,000 to fund a funeral, and we not even talking about a luxurious one. This is the challenge your loved ones have to face at your departure, which is at that time going to b a difficult and emotional time for them being that they are mourning. Life insurance can cover all these expenses with any stress.
3. Debt shouldn’t be incurred after death.
Life insurance can save your loved ones the stress of running into debts due to your absence and also funeral costs. Debts should be the last thing added to the emotional trauma felt after losing a loved one
4. Protection for family and loved ones.
As you work hard to cater and protect the ones you love and care for in life, same should be done in your passing. They will have to survive in your absence, make sure to protect them by being insured
5. Be prepared for anything.
Life insurance covers you in case there’s an emergency, a withdrawal or loan can be requested to cater for the medical bills. It also provides support for customers with terminal illnesses.
6. Peace of mind.
Since no one can actually predict the future, life insurance gives you and your loved ones that confidence and assurance that incase of any unfortunate events you and your loved ones to will be equal to the task.
7. Coverage payment is easy and affordable.
One of the major reasons people don’t have life insurance is because they believe it’s expensive and difficult to pay. This isn’t true as it is easy and quite affordable for most people. The younger and healthier you are the lower your premiums will be.
8. To pay off debts.
Asides the fact that life insurance provides income to cover everyday expenses; it can also cover debts like mortgage, to avoid loss of properties.