September 30, 2015 / By FirstAssurance

Life insurance cover is the protection against the loss of the insured’s income if and when he/she passes away. The named recipient receives the benefits and thereby safeguarded from the financial blow of the insured’s demise.

The purpose of the Life Insurance policy is to cater for your family’s financial security after you pass away. This is not to be taken lightly, so, before procuring a policy, you should consider and re-consider the type of life you want your family to maintain after your death and also your current financial situation.

Would you want to leave your family asking for financial help to plan for your funeral costs or final medical bills? Would there be sufficient funds for your dependents’ ongoing expenses like school fees or mortgages? Do they have to relocate from their usual home? If you have ever asked yourself any of these questions, maybe it’s high time you got this policy.

It is advisable for those already on this policy to re-evaluate it annually or when going through a major life event like marriage, divorce, becoming a parent, purchasing a house, land or even starting your own business.

Life insurance just like any other policy has its perks:

  • With the current state of life and its uncertainties, you can be almost certain that your dependents will continue enjoying the quality of life you have always provided in case of any unexpected turn of events.
  • You as the policy holder can take a loan against your insurance policy. This can go a long way in assisting you during your unexpected life stages without extremely disrupting your policy benefits.
  • Not only can this policy support your dependents after your untimely demise but can also act as a long-term investment for you. It can go a long way into helping you with your future goals like investing in your dream home, pay for your wedding, your child’s nuptials or even help you have a relaxed retirement. This all depends with your appetite for risks and the needs in the different stages in your life.
  • Through stand alone or rider health insurance plans, Life Insurance can cover you against severe diseases or treatment expenses.
  • Most insurance plans, life insurance not excluded, offer amazing tax benefits at the point of entry as well as exit.
  • As a long term contract, Life insurance helps you build the habit of saving since you are required to pay a fixed amount after every period (defined in your policy). Regular savings help you meet your financial needs at the different stages in your life.
  • Some traditional policies may offer you as the policy holder some economic growth opportunities without you taking the risks of investment.
  • Life insurance policy may just be one of the best retirement plan. The money you saved throughout your working years may provide you with a source of income for the golden years.
  • In case of any unexpected events, the insurance cover can cover any loan or mortgage taken by the policy holder instead of leaving this burden to your dependents.

We are not saying that the this policy will help fill the void after your demise but it will go a long way in helping your family meet its needs and reaching future goals. One less burden to bare.