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I can’t stress enough how important it is for everyone to have insurance to protect their future. My insurance carrier has taken care of my kids and my own medical bills far too many times and had I not purchased an insurance in the first place, I would have to pinch from my savings to pay for these exorbitant bills caused by unforeseen circumstances.
A friend of mine who recently lost her husband in a shocking murder case had a huge ‘windfall’ as her late husband (who was an insurance agent) had purchased an expensive life insurance for himself. Thankfully for that huge sum of money, the funeral expenses, their children’s tertiary education and daily expenses are fully taken care of.
Some people believe that they can save enough money to replace their assets should anything happen to them. The problem is that, in most cases, the expenses incurred after an accident, the death of a loved one, or a disability are beyond any savings or wealth that a person may have accumulated and it is for this reason that insurance is such an important component of your financial planning.
Buying a life insurance can be complicated but if you understand the different types of insurances, for eg. life-settlement vs. reverse insurance, cash value vs. reverse life insurance, etc., it will be easier for you to decide which type of insurance to purchase to suit your lifestyle.
Advantages of Life Insurance
1. Life insurance provides an infusion of cash for dealing with the adverse financial consequences of the insured’s death.
2. Life insurance enjoys favorable tax treatment unlike any other financial instrument.
3. Many life insurance policies are exceptionally flexible in terms of adjusting to the policyholder’s needs. The death benefit may be decreased at any time and the premiums may be easily reduced, skipped or increased.
4. Permanent life insurance policies accumulate a cash value over the life of the policy that can be borrowed against tax-free. These policies can be used to supplement your retirement if your other investments fall short. These policies often come with fairly high fees, so be sure to compare the costs to those of other investment vehicles.
Life insurance is essential. It’s a need and not a want. But many of us choose to ignore the reality of what would happen if we were to die unexpectedly without the proper protection. The results could be devastating for your surviving family members, leaving them with a huge bill for your final expenses, or even worse, loss of the family home because they can no longer cover the mortgage.
If you’re wondering why life insurance is important, do give a serious thought on the potentially devastating consequences of not having coverage to financially protect the people that you love.
Start today and shop around online, as well as in person, so that you get several life insurance quotes from different companies before you purchase any type of coverage. Doing this will give you a better idea of what’s available.
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