Securing Family’s Future : 5 benefits of Life Insurance
Life is in no way an all-smooth journey. There are numerous ups and downs as one goes through life. No person in the world can predict even one day into the future with absolute surety. It does not take much time for happiness to turn to despair due to a freak accident. There is only one way to ensure you and your family’s security.
You can’t prevent an unfortunate event, but you can plan for it. And when something happens, you will find yourself better prepared for the same. To enjoy the happy moments of life with a secure frame of mind, you must be ready for the worst. And the best way to be sure that your family will be ok in your absence is insurance. Insurance helps you prevent financial calamity for your family should something happen to you.
Insurance plans like Gerber insurance will help your family maintain their lifestyle. Even when you are there, not there with your income, your family remains financially safe. Often families of people suffer when any untoward event happens to them. This unfortunate event may be of several types, but the most important of them concerns your life. When you are not there, you’re near, and dear ones may have to overcome great difficulty and hardship. They might need to move to cheaper homes and neighborhoods. They might have to take loans, and even your kids might have to skip higher education.
There are a high number of Americans without life insurance. Sixty-eight million of them have no insurance coverage at all. This 2010 figure comes out from a Life and Health Insurance Foundation for Education study. And for most such Americans, they don’t have enough money to secure the well-being of their family in their absence.
Different Types of Life Insurance Plans
There are various types of insurance plans that help to secure the future of your near and dear ones. They are as follows:
Term Insurance– In this type of life insurance, you make a premium payment once. This type of insurance protects you for a fixed period. Your nominee gets a large sum should you die in that period. In such an insurance type, you don’t get any part of your premium back if you remain alive for the period.
Whole life– Such an insurance plan remains valid for your entire lifetime. You need to pay premiums at regular intervals until your death.
Endowment insurance plan– In this type of life insurance, beneficiaries get an assured sum if you die within the plan tenure. In case you live at the end of the period, the company returns the premiums along with benefits and investment returns.
Money-back plan– In such programs, you get back some of the amounts of your invested money at periodic intervals. The people who continue to live till the tenure end get the entire cost of premiums paid. If you die, your beneficiary receives an assured sum.
Unit linked insurance plans-Also referred to as ULIPs; this type of life insurance provides future security. They also offer plenty of options to increase your wealth too!
The advantages of level term life coverage are as follows. Please keep in mind the exact particulars may vary according to the particular plan and service provider.
The better term insurance policy offers the same rates or premiums for a fixed duration. The exact period varies according to the particular plan. You get the coverage till a specific age or end of your term. When the fixed term of the policy ends, you can opt to both continue with it or end it. It would help if you remember senior citizens need health checks to get insurance once they have passed a particular age.
Save money with group buys and get volume discounts:
When you opt for a high-volume plan or one with very high coverage, you stand to get discounts. Discounts will let you save on the insurance expense. You can protect other members of your family as well and get a select group buy discount.
Get an advantage in your living expenses:
Securing your family’s future with insurance can help you cover many expenses too. Depending on the particular plan, it might help to clear off hefty medical costs. As usual, many policies pay your mortgage costs and other expenses if you are not able to work. Some plans even give you a significant portion of the insurance if you are diagnosed with a terminal illness. Of course, the details of such benefits vary plan-wise and according to the company.
Insure Life with a Grand Sum:
You can protect yourself and your spouse for an astronomical amount as coverage. A large coverage amount ensures greater financial freedom for your family in your absence. However, this may be limited to a certain extent and by your age. But more the coverage the greater ease with which your family can spend their lives when you are not there. And you want the best quality of life possible for your family, should anything happen to you.
Useful for retirement pension maximization:
People about to retire are often asked to make a choice. They can take their pick from a full pension payout and one that offers benefits to your spouse. Through a strategy referred to as pension maximization, the wise thing to do is to accept the pension in full. They are always free to use a part of their pension amount for life insurance. All you need to do is to make your spouse the beneficiary. This way your spouse gets greater financial safety should anything happen to you.
We can sign off this article by saying that you really matter to your family. Not only that, your family matters to you a lot too. It is only, therefore, befitting that you ensure their financial safety when you are no longer there. It’s a wise thing to do!