September 12, 2018

Life insurance quotes: types and benefits

Do you have life insurance? Why or why not? This is a life insurance quote: the type and benefits.
For many people, the first introduction to life insurance is when a friend or a "friend of a friend" gets an insurance license. For others, a close friend or relative died without having adequate coverage or any life insurance.
Life insurance quotes: types and benefits
Insurance
Some people mistakenly believe that life insurance is a scam. This is because the money for premiums is lost if death doesn't occur during the coverage period (in the case of term insurance), or because many people live to a ripe old age and continue to pay their permanent insurance premiums. Such naysayers compare life insurance protection to gambling, and forgo the protection entirely.

How important is insurance?

Insurance is actually an arrangement which a company to provide the guarantee of a specific amount of compensation to the person or entity for a specified loss, damage, illness or death in return for a specific amount of premium that is paid by the person monthly.
For example, picture a safety net.
You may be the greatest tightrope walker in the world, without a doubt. You could perform without a net, but, "Why?" You cherish your life and the life of those close to you and you wouldn't do anything that showed that you felt differently. Let's face it, we have no control over the unpredictability of life or of unforeseen occurrences. With that in mind, just as a safety net protects the uncertainty life, so does life insurance.

So..over the years, life insurance has given many caring and responsible people the peace of mind knowing that money would be available to protect the ones most important in their life, family and estate in a number of ways

Know four types of insurance policies.

  1. Health Insurance: it is basically a type of insurance where monetary support is provided for any serious health related issues to the policy holder or his family.
  2. Life Insurance: it is a type of insurance that is done to provide financial security for the entire family in the event of the policy holder's death.
  3. Property insurance: this type of insurance covers the policyholder in the event of damage to his property by fire or any other means.
  4. Auto Insurance: your car is too precious to you, so if it is stolen or damaged you will need a huge amount of money. This auto insurance will pay the policy holder's repairing costs.
But before you buy any insurance you must know all the benefits of that insurance. Insurance benefits the individual or any organization in many ways.

Benefits of life insurance.

  • To Provide Living Benefits.
With the advancements in medicine and rising healthcare costs, people are living longer, but cannot afford to. Living benefits is an option to use death proceeds before the insured dies to help with obligations or necessities to ease the pressure on themselves and others.

  • To Cover Children's Expenses.
Like most caring and responsible parents, it is necessary to be sure that our children are well taken care of and can afford a quality college education. For this reason, additional coverage is absolutely essential while children are still at home.

  • To Pay Off Debts.
In addition to providing income to cover everyday living expenses, a family would need insurance to cover debts like the mortgage, so they wouldn't have to sell the house to stay afloat.

  • To Replace the Spouse's Income.
If one parent passes away while the children are young, the surviving caring parent would need to replace that income, which is essential to their lifestyle. The responsible surviving parent would need to hire help for domestic tasks like cleaning the house, laundry, and cooking. Add to that equation if it is a single parent, helping with schoolwork, and taking your children to doctor's visits.

  • To Pay Off Estate Taxes.
Estate taxes can be steep, so having insurance in place to pay them is essential to avoid jeopardizing assets or funds built for retirement. Use of insurance for this purpose is most common in large estates, and uses permanent (rather than term) insurance to ensure that coverage remains until the end of life.

  • To Buy a Business Partner's Shares.
In a business partnership, the partners need insurance on each other partner's life. The reason is so if one dies, the others will have enough cash to buy his interest from his heirs and pay his share of the company's obligations without having to sell the company itself. They have the same needs (due to the risk that one of the partners might die), and they simultaneously purchased insurance on each other's life.

  • To Pay Final Expenses.
The cost of a funeral and burial can easily run into the tens of thousands of dollars, and I don't want my wife, parents, or children to suffer financially in addition to emotionally at my death.
Given all the available options, it is important to look at the potential exposure or losses you may face. Remember, insurance policies are intended to protect the holder in the event of a loss. Savvy customers will evaluate their risks, but it is important to remember that insurance is often the first and most effective bulwark against catastrophe.

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