Insuring one’s life is all about keeping an after the death fund for the family and dependents. It is a proactive measure to make sure that your loved ones live a comfortable life once you are no longer around. It is about leaving them with the financial support after you are dead. As it is, death is unavoidable and you can no longer be there to take care of the loved ones. In your permanent absence, it is the funds and finances that prove to be a support system for your folks. It is a wise investment that gives returns at the actual time of need.
Life insurance is not just for the elderly!
People often live with an impression that life insurance is only for the elderly. However, statistics prove that thousands of young people die in the UK. Cancer, road accidents, strokes and sudden death are some of the main causes of death in young people. If they are the earning members of the family and have not opted for life insurance then the family will be left behind to face the severities on its own. So, drop the idea that you will get an insurance cover only when you cross sixty. Just get yourself a life insurance cover as it is in the best benefits of your family.
Must for earning memeber of the family!
If you are a breadwinner of the family or are one of the earning members then getting a life insurance is a must. Your sudden demise may result in loss of financial aid for the family. Even if your income is low, you can have insurance as the payoff would arrange for the funeral and other expenses. It’s all about securing your loved ones once you pass away, and so, you must invest in a life insurance cover.
Must insure life for paying mortgages:
If you have mortgaged property, house, store or any other tangible thing, then it is advisable that you invest in a life insurance policy. The few investments that you make on a monthly basis will be returned as a lump sum money on your death. With this money you can pay for the mortgaged property and start owning it again. Otherwise, your family will have the burden of paying the debt.
It only costs a few pounds a month, but with the average payout being around £50,000, if a loved one dies, it can make all the difference. In 2013, life insurance claims totalled more than £1.2bn.
When claims on terminally ill people and severe injuries are counted, the claims figures jump to almost 90,000 claims totalling more than £3bn.
The main point of advice that insurance companies are giving is to be aware of several different factors.
Customers need to know under what circumstances the policy will pay out. Will it only pay in the event of a death, or will it also pay in the instance of a serious or terminal illness? Different pay out schemes will affect the price of the monthly premium and also the value of the pay out.
There are also two types of pay out. It can come as a lump sum, requiring careful financial management of the money. Or, it can come as a monthly or annual payment, which allows you to treat it more like a salary and budget from month to month. Both options give different benefits and can allow either greater independence, or less risk and worry.
Experts are also suggesting that customers need to read all the fine print, and watch out for clauses in the policy that will allow the provider to raise the premiums. This is a particular worry when policy premiums are unusually low. This can often be an indication that the low starting price will change over time.
It can be a morbid and worrying conversation, but life insurance could provide the financial stability that a couple needs to ensure that the family can go on after a loved one dies.
To sum up, it is always wise to invest in life insurance. It keeps you relaxed with an assurance that your family would be taken care of much after you leave the earth. It is one kind of a financial security for your loved ones. Everyone with dependants should have a life insurance policy to give a financially secure life to their loved ones.