Life is uncertain in today’s fast paced world. One never knows when the unthinkable is going to happen.
For this reason, life insurance is a necessity to both the insured as well as the beneficiaries of the policy.
Life insurance is a contract made between the insurance company and the policyholder. This contract provides for financial support to a named beneficiary in the event that the insured dies.
In order for this contract to continue to remain in effect, the policyholder must continue to make payments known as premiums.
Failure to pay the insurance premiums can cause the contract to lapse. There are four primary types of life insurance: universal life insurance, term life insurance, whole life insurance and endowment life insurance.
Having life insurance is important for a variety of reasons. First, life insurance provides financial coverage for the policyholder’s family in the event of their death.
This can be a source of income for the family. This is especially important if the policyholder was the primary breadwinner in the family.
The financial benefit can also help pay the home’s mortgage, be used to send children to university and other expenses.
Another use of the financial benefit would also be to pay off debts accumulated by the insured. Life insurance is also an excellent investment as it is designed to protect one’s assets.
Additionally, some types of life insurance policies do come with an investment piece. Insurance is also not subject to taxes. Therefore, it can help reduce your tax burden. In dire situations, some life insurance policies are cashable meaning the insured can obtain a loan from their policy.
Life insurance can also help with funeral expenses. Today, a funeral is quite costly. This expense comes at a time when family members are grieving and simply do not need to worry about this expense at such an emotional time. One resource available is sites like Endsleigh.co.uk – they have advisors to help you take out the right level of insurance for you.