Behind the reasons why you should consider buying life insurance

• June 15, 2023
• By admin
• Health & Fitness
• 0

Behind the reasons why you should consider buying life insurance

Everyone has different reasons for purchasing insurance. However, the main consideration in choosing insurance is making sure that you and the people you care about have access to financial security. Discover the necessity of life insurance and its importance.

Why is life insurance important ?

Life insurance provides cash when you need it most. Your life insurance policy can deliver a specific amount of money when you need it. Upon your death, your family will receive your policy payout immediately.  And that death benefit paid out by the insurance policy can help cover expenses such as, outstanding debts, mortgage payments, education expenses, and daily living expenses .

Money Replacement: If you are the family’s main provider of money, your sudden passing can leave your dependents without a way to support themselves. Your family’s financial needs, such as reaching short- and long-term financial goals, can be supported by life insurance, which can replace your salary and offer a consistent flow of funds.

Education Funding: Life insurance can be used to fund your children’s education expenses, ensuring that they have the necessary financial resources to pursue their academic goals, even if you’re no longer there to provide for them.

Peace of Mind: For you and your loved ones, having life insurance can bring about a sense of security. Knowing that your family will be financially secure and cared for during trying times gives you a sense of security.

The steps in buying insurance

1. Determine your goals, determine how much insurance you need to meet your goals over time, and determine what you can afford to pay.
2. Learn what types of insurance can help you meet your needs.
3. After considering initial premium payments, any possible increases in premiums over time, any additional death benefits, and any living benefits that can be utilized before you die, choose the type of insurance policy (or combination of types) that best meets your needs.

Remember, working with a financial professional can help make this whole process easier. A financial professional can help explain the differences between types of policies, help you calculate the amount you need, and present potential options that may best suit your needs.

The benefits of life insurance

1. Guaranteed protection
2. Income replacement
   Imagine what would happen to your family if the income you provide suddenly disappeared. With whole life insurance, you can help make sure that your loved ones have the money they need to help:
   • Pay the mortgage
   • Afford childcare, health care, or other services 
   • Cover tuition or other college expenses
   • Eliminate household debt
   • Preserve a family business
3. Guaranteed cash value growth
   • Supplement retirement income 
   • Fund a child or grandchild’s education 
   • Protect existing assets 
   • Establish an emergency fund 

Top 5 best life life insurance claim settlement ratio in india!

1. Max Life Insurance: claims 99.09 per cent death settlement ratio
2. Bajaj Allianz: claims 99.02 per cent death settlement ratio
3. Bharti Axa Life: claims 99.09 per cent death settlement ratio
4. Tata AIA Life: claims 98.03 per cent death settlement ratio
5. SBI Life: claims 97.05 per cent death settlement ratio