Life insurance is all about giving those that are left behind financial help. Insurance is designed to protect a person and the family from disasters and financial burdens. There are many kinds of insurance of which, the basic and most important is considered to be life insurance.It provides for the dependents after your death. If you have a family who are dependent on you then life insurance is something which you should certainly consider taking. Having life insurance doesn’t just mean the funeral expenses would be covered in the event of your death, it is much more.

Since there are certain financial commitments you need to meet throughout life and do contribute in some way to the family income, you need to provide something even in death—to secure the home, help the family meet expenses for a while, protect dependent parents, or secure the children or spouse.

Financial obligations could include funeral expenses, unsettled medical bills, mortgages, business commitments, meeting the college expenses of the children, and so on.

For example, if you have a mortgage then the mortgage payments alone would be a nightmare to cover, not to mention other bills, such as putting the kids through college as well as looking after their wellbeing. Even if your children are grown up then consider what would happen to your partner and the home.

Another example is “stay at home parents”; they might think they don’t need life insurance policies as they’re not earning wages, but this is not the case. Consider how much it would cost to hire people to do all of the daily tasks you do- from day care, to housekeeping to financial management to grocery shopping, errand running and cooking. If you have a special needs family member, what would it cost to have special care arranged if you were not able to do it? Life insurance for a stay at home parent would allow the family to hire people in the event of your death to continue on doing the things you were routinely doing for the family.

As an important part of your financial plan insurance provides peace of mind for any uncertainties in life.

For example, if you are the main wage earner then consider what would happen to your family and how they would cope if they were left with bills to pay.

  1. Life insurance correctly planned will on premature death provide funds to deal with monies due, mortgages, and living expenses. It offers protection to the family you leave behind and serves as a cash resource.
  2. It secures your hard-earned estate on death by providing tax free cash which can be utilized to pay estate and death duties and to tide over business and personal expenses.
  3. Life insurance can have a savings or pension component that provides for you during retirement.
  4. Some policies have riders like coverage of critical illness or term insurance for the children or spouse. There are certain rules regarding eligibility for riders which you will need to determine clearly.
  5. Some policies have riders like coverage of critical illness or term insurance for the children or spouse. There are certain rules regarding eligibility for riders which you will need to determine clearly.
  6. In case of bankruptcy, the cash value as well as death benefits of an insurance policy is exempt from creditors.
  7. Life insurance can be planned such that it will cover even your funeral expenses.
  8. Term life insurance has double benefits, it protects and you can get your money back during strategic points in your life.
  9. Insurance protects your business from financial loss or any liabilities in case a business partner dies.
  10. It can contribute towards maintaining a family’s life style when one contributing partner suddenly dies.

Insurance is vital to good financial planning and security but you would need to assess your personal risk and long-term commitments. Insurance stands a person in good stead throughout life and can be used in case of emergencies during a life time by requesting a withdrawal or loan.

Life insurance can be an effective tool to make certain and protect your family’s financial future. It has been acknowledged universally as a method by which the breadwinner can substitute risk and uncertainty with timely aid for the family in case of their unfortunate death. Since a life insurance policy will replace your lost income after your death, it is important to choose the right kind of policy.

You should consider life insurance if:

Have dependents

The moment you are responsible for another person in your life, you need life insurance. Whether it's your children, a spouse or employees, if someone counts on your ability to earn an income, then life insurance is a necessity.

Have a mortgage or other debts

If you have a mortgage, you need life insurance to pay off the remainder of the mortgage if you should die before the mortgage is paid off. If you don't have some sort of insurance to pay off your mortgage when you die, your heirs will have to deal with the debt.

Own a business or are a key employee in a business

If you own a business, are partners in a business or are a key employee in a business, a life insurance policy can keep your business afloat while your employees or partners make arrangements to replace you or dissolve the business according to your wishes. If this is your reason for investing in life insurance, it could possibly be charged off as a business expense.

  Advise. Insure. Prosper

Our professional team at Advisen Life & Wealth have a very strong commitment to providing specialized, personalized, and quality insurance plans to all our clients at extremely competitive pricing, and in an accurate and efficient manner.