The unexpected can come anytime without even the slightest warning. Life insurance saves your loved ones from any misfortune that may arise from your untimely death or some fatal injury due to an accident. We cannot predict the future or tailor it to our convenience, but we can always make the best possible safeguards to protect and ensure a decent life for the people who are near and dear to us.
Imagine a situation when suddenly something untoward happens to you. You may be having a family with spouse and kids totally dependent on you. There could be several payments that you are making regularly like the mortgage on your house, the car, bills, taxes and utilities from your income. If that stops being generated unexpectedly, then how would they meet them? Your kids could be going to school and later on they would be enrolling in a college or university. It all requires a regular flow of income. Even if they liquidated your assets, it would not replace the income you brought in.
In the event of the unexpected happening, a life insurance policy is the only way that can protect them from your loss of income. By taking out a life insurance policy, you designate a beneficiary who could be your spouse. Your kids and your spouse could be safeguarded and they could lead a decent life. There are different types of policies available that are tax free and specifically suited for your needs and income. A wide array of Permanent and Term life insurance policies are available with insurers including disability income insurance to substitute for your loss of income.
If you begin planning for the unexpected, there are several life insurance companies that you can approach. You need not have to go over and wait for your turn to meet an agent at a brick and mortar insurance company. Going online could provide a lot of options as nearly every insurer has a website on the internet listing their policies and premiums. You can check and then decide on the one that would suit you best. You could also check the customer reviews for policy payouts and the kind of service they offer. Once you are done with the selection, an agent would be sent over who would advice you on your exact requirement depending on your income.
To fix up the policy amount, you need to work out your net worth, assets and liabilities and the assets that could provide income after being taxed. Your present income would also decide on the amount of policy and premium payment that you should go for. Usually, prospective insurance policy buyers calculate coverage by multiplying their monthly income with the years they would want it to roll in. Agents are experts in fixing up amounts based on individual needs and they can get a figure done for you. Insurance cover also gets carried over to the next employer if it is employer sponsored to avoid any abrupt lapses should you change jobs.
Term insurance is for a limited number of years and can take care of a specific future payment like college fees. In the event of a child or spouse with disability insurance can safeguard the future by providing a constant source of income. A debt that may occur for future college and university expenses and a life insurance policy is an ideal safeguard for your loved ones.
Julia Winston is a freelance writer living in London. She often writes about financial issues like life insurance. She has also written other articles about pet insurance and other financial matters.
Orignal From: Planning for the Unexpected: How Life Insurance Safeguards the Life of Your Loved Ones
No comments:
Post a Comment