Three Reasons to Consider Life Insurance
Life insurance provides you, and your loved ones, with a financial safety net. Life insurance can allow you to provide financial security to your loved ones in the event of your passing, to ensure that they are taken care of now, and in the future. Prior to purchasing life insurance, it is important to understand how it works and how your beneficiaries can receive the proceeds of your policy. Beneficiaries may receive a life insurance payout through instalments, lump-sum payments, and retained asset accounts.
When it comes to buying life insurance, it’s important to know your options. There are two basic life insurance options: term and permanent. Term life insurance lasts for a specific, pre-set period, while permanent life insurance lasts for your entire lifetime. Understanding the difference between term and permanent life insurance can help you choose the best option for you and your family. Some of the key differences between term and permanent life insurance are the length of coverage, the cost of the premium, the cash value, and the death benefits.
Below are three reasons you should consider life insurance:
To protect your family and loved ones
When you pass away, life insurance can help to protect the financial future of your family and your loved ones. Life insurance can ensure that your loved ones are able to maintain their current standard of living, without having to worry about lost income. Additionally, life insurance can cover the cost of caskets, burial plots, mortgage payments, and basic needs such as food and childcare.
Cost Effective
Often, people put off purchasing life insurance due to financial concerns. While the cost of life insurance depends on several variables including age, sex, overall health, and type of policy, it often costs significantly less than people assume. It is extremely beneficial for young people to purchase life insurance as life insurance policies will always be cheaper in annual premiums the younger you are when you buy your policy.
Peace of mind
In the event of a tragedy, life insurance can provide your family with peace of mind and secure their financial future. Life insurance can ensure that your debts are paid off and that your loved ones are taken care of in the event of your death.
Our team of financial advisors can help you to determine how much coverage you need, what you’ll pay for premiums, and whether a term or permanent policy makes more sense for you.