Here's how life insurance can protect you!

Have you ever wondered whether life insurance is really necessary? Perhaps, you plan to put off buying this form of coverage until later. Or, you may have heard that your savings and investments will suffice for your loved ones if something unfortunate happens to you. However, that may not be the case. Life is unpredictable; unfortunate circumstances can befall any of us anytime. A life insurance plan can turn out to be the safety net you need.

Life insurance can give you peace of mind while going about life’s priorities and milestones. You can choose between term insurance and whole life insurance, depending on your requirements and budget. Term plans cover you for a fixed period and can be great for securing certain life goals such as your child’s university fees. A whole life plan covers you for the entirety of your life. Whole life insurance can be a participating plan with dividends or a non-participating one for pure protection.

In this article, we will take a closer look at the benefits of life insurance.

·         Avoid putting your family in debt if you pass away suddenly

Taking a mortgage or a car loan marks new and exciting beginnings in life. However, sometimes, things don’t go as planned. If you suddenly pass away, your loved ones may be left with the responsibility of paying for the home mortgage and car loan, among other bills. This can prove to be an issue if your spouse is a homemaker. In your absence, your family may lose their precious assets and even face foreclosure of their mortgage. A life insurance payout can protect them financially from such an unfortunate situation.

·         Life insurance plans can protect you financially in unfortunate times

A basic life insurance plan covers you against death, terminal illness, and total permanent disability. You can also enhance your coverage with riders so that your plan also pays out a benefit to you in certain unfortunate situations in your lifetime. For instance, you can add riders that give a payout if you are diagnosed with critical illness or upon admission to the ICU due to an accident that affects your major organs. In such unsettling situations, your health insurance coverage may fall short. While it will cover a certain portion of your medical bills, it will not extend towards newly added expenses that may get associated with your health condition. For instance, your health insurance won’t cover the costs of keeping a domestic worker to care for you while you get better. The lump sum payout from your critical illness rider however, can prove helpful here.

·         Life insurance plans gets costlier as you age

If you decide to buy life insurance later in life, you may find that the premiums are more costly as compared to when you’re younger. The younger you are, the more affordable your premiums. You can consider buying life insurance in your 20s before you are saddled with any other responsibilities, and be protected earlier in life.

Do speak to a financial consultant today to understand the differences between these options and explore the best plans for you.

Take care.