Buying life insurance is not just a “financial decision” but a “life changing decision” as it has a direct impact on one’s family.
Many people think that buying a life insurance is not necessary until you have some ‘health issue’ or you have some other financial reasons.
But one thing everyone should understand that life insurance doesn’t only protect your family after your death but also safeguards you when you are alive.
There are several major reasons, which explain why everyone should buy a life insurance.
Some of them are:
#1 Safeguarding Your Family’s Future
Like we all know that life and death are two sides of the same coin and every person on this earth has to face both. But sadly, no one knows when the death will knock his/her door
But sadly, no one knows when the death will knock your door and if it happens, who will be there to take care of your family after you.
Here comes the life insurance in, as it provides a secure financial life for your family after you are gone.
So, life insurance in simple words is nothing but a way to protect your family’s future in case something bad happens with you.
#2 Helps Achieving Long-Term Goals
Long-term goals need a huge cash and no one has enough cash when the requirement comes in.
Well, here life insurance acts as a bridge between you and bank, in order to get the required loan.
Suppose, you are planning to buy a home and you don’t have enough money at once (more than 90 percent people don’t have at once), so the next option you have is taking a loan from a bank.
Now, any bank requires some “guaranty” and here your life insurance plan will act as a “guarantor” for the loan.
But one thing you must keep in mind that loan amount is completely depended on bank’s agent’s mind and the insurance plan you have bought.
#3 Makes Life Better After Retirement
There are a number of people who enjoy their present life without saving for future and when they retire from their job, they are left with nothing.
And trust me, in old days it becomes impossible to earn the livelihood.
So, why not buy a life insurance which provides retirement pension in your old days so that you keep enjoying your old days as well.
Let me clear first that not all life insurance plan cover this feature and to clarify, you must ask the insurance company or the agent about this before buying any insurance plan.
#4 Your Business Is Also Taken Care Of
Making a business worth takes a lot of time and energy but what would happen if a co-owner dies accidentally.
Well, in this case, the other partners of the business can easily purchase your (co owner’s) portion of the business entering a buy-sell agreement and the payout (which comes from the insurance company) goes directly to your nominees.
Here life insurance and the buy-sell agreement ensure that your family gets the deserved amount after your death.
#5 Saves a Lot of Taxes
Many people buy life insurance only to save taxes. But it completely depends on which plan you have bought and how much premiums you are paying annually.
Every country has its own set of rules of tax benefit on life insurance and hence one must learn the rules and regulation to avail full benefit.
#6 Acts as a Future Savings
Let me start by saying that not all life insurance plans provide a cash benefit after maturity like term life insurance, so if you are planning to save some money and use it in future, go with whole life insurance.
If you are not planning to have any cash benefits upon maturity, you can buy term life insurance.
In whole life insurance, you can claim your cash after maturity.
#7 You May Become Unqualified for Life Insurance Later
Life insurance is something you can say that the sooner you buy, the lesser you pay.
Well, taking a life insurance is way easier when you are young and healthy as the companies see you as a “profitable asset”. So to sell you their insurance plans, they come with several fascinating plans.
With increasing age, you become unhealthy, which makes you less “profitable” for the insurance companies.
And that’s why it is said, buy life insurance in your early days, to keep your later days safe and blissful.
#8 Provides Peach of Mind
As we know that death is unavoidable, so why not to keep your family financially safe from the starting.
If you don’t have much to invest, go with small policies. At the end, it will give a peace of mind that even if you die, your family will always be happy and financially strong.
So, these were the 8 major reasons why everyone should buy at least one life insurance in order to secure family’s financial future.