Every aspect of life is circled with risk, and only proper planning makes one live above and overcome the risks. It is not unusual to find people who lived rich, but later become very poor because no proper foundation was laid for the risks associated with such level of affluence. Protecting the family and providing for them, in the event of the unexpected, is critical to determining how far the family can cope when the breadwinner is not there.
This brings us to the relevance of life insurance, and how different types of life insurance can take care of our needs, now or in the future.Whether or not as a breadwinner, you will be there to provide for the family; in the event that you are unable to pay off your loan should death occur, and what happens to your assets and mortgage plans.
Finance experts say one of the instruments you should consider adding to your portfolio is life insurance. For personal financial planning, life insurance can be of great value. There are some major areas of your financial plan that can benefit from a life insurance policy, being a part of the overall plan.
Ugochukwu Onyeka, an insurance agent, noted that when you are determining the need for life insurance, you should consider what amount you will need, to protect your family in the event of death. “You should also analyse other areas of your life, that would be financially affected in the event of your death, and purchase enough life insurance to cover those needs and more”. Both term life and whole life insurance policies will have some features that can help you with this.
Life insurance can be used in financial planning to help you secure a loan. If you need to borrow money to start your own business, most banks and lending institutions will be concerned that if you were to die, the loan would be defaulted. To get some protection against this, it is advised that you purchase a life insurance policy that pays a death benefit of that amount, and use it to secure the loan you need. This will save your family from being responsible for the loan.
Life insurance policies, especially most whole life insurance policies, have a cash value, and you can use your built up cash value as an additional means of saving money, in case of an emergency. Because the cash value of your policy tends to increase over time.
Unlike with a bank account, where you earn interest on your principal and must pay income tax, your insurance policy will produce almost the same interest returns, and pays many times over in benefits if you should die. Your policy builds cash value when you put money into it and you do not pay any income tax on the cash values.
You can also borrow money against the cash value of your policy without any penalties. Your cash value will remain intact for you to use as you want. In some policies you may be able to borrow money at zero interest rate, and you can have the payments deducted from your final death benefit upon your passing.
To protect your family and loved ones from financial ruin, and take care of any outstanding debt you may have, you are going to need adequate life insurance. No matter which type of policy you choose and what the features and benefits are, nothing begins, until you actually pay for the coverage. Before you commit yourself to any plan, make sure you get a life insurance quote.
People say that insurance is always sold, nobody likes to buy it. Because some of us hesitate to even discuss it. May be due to fear of death, we do not want to accept the obvious fact of life. If you have some dependants or someone relies on your income, you definitely need a life insurance cover. One of the most important benefits of life insurance, is that in case of your death, you are able to protect your loved ones against financial consequences.
There are two main types of life insurance policies available in today’s life insurance market. They are term life and whole life. Each has its own unique purpose and fills a particular need in the market place.
Learn more about South Carolina Life Insurance Policies at InsuranceSCNow.com
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