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Everyone is busy living a life. Earning money, growing in career, taking care of family, buying gadgets, going on vacations, purchasing assets and things like that are always on priority lists.
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Life Happens: Make Sure Your Life Insurance Is Ready For It!
Everyone is busy living a life. Earning money, growing in career, taking care of family, buying gadgets, going on vacations, purchasing assets and things like that are always on priority lists. However, in this running around, most of us tend to forget that life is fragile and the future is uncertain. Many of us make plans of securing ourselves and our family members against the uncertainties of life, but forget about it or keep procrastinating citing lack of time. Life insurance is an important tool to help us live a stress-free life, but the tendency is to consider it more as a tax-saving instrument rather than an asset that can help us and our family members, during our lifetime and even after that! For those who already have life insurance policy, even they keep it like just a piece of paper instead of reviewing it from time to time to see whether it still holds any value or not.
Let’s go through some of the important pointers about life insurance to understand its importance and how to go about it: • Who Needs It And Why? Everyone practically needs a life cover to safeguard against unpredictable nature of life. It is even more important for those who have dependents on them. In case of untimely death, the dependents won’t have to worry about their education, following a daily routine, surviving. An insurance cover can help them to cope with the financial loss at least so that their life goes on in a smooth manner. However, what you need to be careful about is buying insurance and leaving it like that. The reason being, life insurance is bought for long term coverage with periods extending between 15-20 years. With time, your needs and requirements might change. The policy that you bought, say 5years back, may not be relevant or sufficient today. Hence it is important to keep reviewing it from time to time and then accordingly buy additional policies with better coverage.
2) What Should Be The Cover Amount? There is no fixed amount for this. It all depends on how much loans you have, how many dependents you got and what age group they’re in and how much you’re earning currently. After calculating your current expenses along with costs involved to replace your income and pay off all the debts, one can reach a figure of insurance cover. 3) How Can You Buy The Best Policy? With the advancement in technology, you don’t have to keep waiting for your neighborhood insurance agent to update you about products and sell them to you. You can simply log on to a website that offers information about various insurance products by all possible insurance companies. You can go through detailed information about their terms and conditions, find out about the premium you need to pay, compare different plans and then select the one that meets your requirements. If you’re convinced with the plan, you can even buy it online by the click of a button rather than running around from office to office.
4) When Should You Buy It? You should start making investment in insurance as soon as you start earning. One of the reasons is that the younger you are lower will be your insurance premiums. Also, there is no fixed time to get insured. Nowadays, people insure their children as well so as to safeguard their future. At the same time, if you haven’t bought any insurance cover till now and are closing to the age of retirement, you can still make such plans. There are plans for senior citizens as well that you can avail of and cater to the population between the age of 65 years and 80 years.
5) Should It Be Individual Or A Joint Policy? In case you share your financial responsibilities with someone, then a joint cover is advisable. However, the disadvantage of such a plan is that once the co-insured dies, the insurance company will only pay out the coverage amount once and then the policy will cease to exist. In such a scenario, the living partner will have to buy another individual policy and based on age and other factors, the premium amount may go up a bit. Hence, if it allows your pocket, try having separate policies based on your requirements.
Life insurance is an effective tool in the hands of common man to ensure that his family members and dependents don’t have to suffer financially in the unfortunate event of his untimely death. Better to use this tool to maximum advantage so that you can live your life stress-free knowing that family’s needs and requirements will be taken care of even in your absence and they will be able to continue living the same lifestyle as they do today. Resource: http://blog.easypolicy.com/life-happens-make-sure-your-life-insurance-is-ready-for-it/ Compare Life Insurance Now!
