Why Is Life Insurance Important?

Life insurance is important, as it protects your family and lets you leave them a non-taxable amount at the time of death. It is also used to cover your mortgage and your personal loans, such as your car loan. Your individual life insurance follows you when you retire and you are no longer insured by your employer. This insurance will also replace your family income when resources are less so they can maintain their quality of life.

A little financial planning is necessary at every stage of life to achieve your goals. Consider your greatest financial aspirations, such as purchasing a home, sending your children for higher education, or setting up money for retirement. Life insurance can offer defence against the unforeseen as you and your family save for these milestones. A life insurance would give your family a tax-free cash payout that they can spend for whatever they need in the event of your untimely death. That money can be used to pay for daily expenses, lessen financial obligations, and accomplish the objectives you've been working so hard to reach together. Let’s look at some of the reasons as to why life insurance is important for you and your family’s’ future.

Types of Life Insurance Policy

• Term Life Insurance: It is a time-limited insurance policy that lasts for a specific period.
• Whole Life Insurance: t is an insurance policy with no time limit, but it pays off only after you die or when the policy matures, whichever comes first.
• Unit Linked Life Insurance: Unit Linked Life Insurance is a type of life insurance that is linked to a unit of investment.
• Endowment Life Insurance: It is a long-term life insurance policy that provides the beneficiary with a fixed rate of return.
• Child Life Insurance: Child Life Insurance policy is a type of insurance policy that covers children up to a certain age.
• Retirement Life Insurance: This covers the cost of living expenses when you retire. It's meant for those who are retired and have a fixed income.
• Money Back Life Insurance: It returns the money invested by the policyholder. In this, the percentage of amounts at regular intervals, instead of getting the lump sum amount at the end of the term.