Is life insurance important?
Is life insurance important? Life insurance is often an underrated product. Mostly because we don’t like to think about death, and more than probably because we tend to think that we will live forever.
Of course the overwhelming evidence disproves this, which makes life insurance a necessary product to invest in.
What is life insurance?
A life insurance poilcy pays out a lump sum to the beneficiary of your choice. It does not have to be particularly expensive, although this would depend on the level of cover that you’ve chosen.
Who is protected?
More importantly life insurance cover protects your loved ones from financial difficulty by providing much-needed financial assistance during an incredibly hard time. It is an especially crucial policy to have if you are the sole breadwinner as it allows your family to continue to afford the lifestyle which they have become accustomed to. Consider school fees, bond repayments, grocery bills, and other factors that have made up your life. How would your family continue to meet these financial expectations should their main source of income not be with them anymore?
Why do I need it?
A life insurance policy is also a way to leave an inheritance behind for your partner and children. It’s a way of allowing them to continue to dream about their future – with a little help from you.
A seemingly lesser consideration when looking at life insurance is peace of mind. Why lesser, you might ask? Because it’s been bandied about in association with all forms of insurance products for so long that it has lost a bit of its meaning. However as your life progresses and more value is added to it, whether this is in the form of a partner, children, a home, or a car, the fact is that it is worrying to wonder how your family would cope without you.
To know that you’ve taken a responsible step towards safeguarding their future does actually help you face whatever life may throw at you with a sense of peace. Because while much of the beauty in life comes from not knowing, it’s also handy to know that whatever may come, you can still make a difference.
Until next time.
The MoneyShop Team
This article has been prepared for information purposes only and it does not constitute legal, financial, or medical advice. The publication, journalist, and companies or individuals providing commentary cannot be held liable in any way. Readers are advised to seek legal, financial, or medical advice where appropriate.