subject: Reasons Why You Should Procure Life Insurance [print this page] Life insurance is a commodity - sold and procured. But many people would not want to think about this particular product. It usually is associated to something all of us hate to come - death. But if you would just give your underwriter time to explain the benefits, maybe you can have a change of notion about life insurance.
What are the benefits?
You have to accept that we cannot control our lives and that death is an eventuality only God knows when it will come. With life insurance, you have made provision for your children and family. You would leave them some amount so they can pick up the pieces and start their new life. They are taken care of by the money you will leave them, which is the face value of your insurance coverage.
Peace of mind - for you. You can always be contented even if you have fear for your death. You know that when you are gone, there is some money left for your family and children. You can even purchase an insurance type that can cover funds for the education of your children. Or - your insurance benefit can be a trust fund for your children. So - their financial needs can be provided.
How do you like it to be considered as an investment? Many of the policies will allow for dividend accumulation. The percentage of dividends can be even bigger than ordinary interest on savings. And without withdrawal of your dividends, your coverage can increase in value over the years.
Source of emergency funds is another benefit you may derive from this product. After a prescribed period, your insurance policy would already have a loan value. You can borrow this loanable amount in case you would need money. And if you are applying for other types of loan, this can be a financial asset. Actually, this becomes a dual purpose investment. You earn money over a period of time and you are protected from the most detested demise.
Another form of investment that can be explored is its provision for your retirement. You can procure an insurance which has a maturity period that you can survive. Then when that maturity date comes and you have not met with the unthinkable, then the proceeds of your policy can be construed as a retirement fund.
Funeral expenses and estate taxes can also be funded by the proceeds of this facility. When you die, you know that your family will not be scampering for funds to pay for your funeral expenses. And if you have properties to bequest your family, the proceeds can be used to pay the estate taxes. In this case, the assets you have left will not be diminished by the amount of the tax.
If you have a business and there is business partner in it, the coverage will be assurance enough that the enterprise will continue.
With the so many advantages of life insurance, it is beneficial that each person procures one. And it is better to have it while you are younger because you pay a lesser amount of premium. This again is investment! Everybody wants earning investments.
by: alona Rudnitsky
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