The Importance of Life Insurance
What is the importance of life insurance? How much does it cost to get life insurance?
2021 has been the year of many travails, new lessons, and many uphill battles. We all struggled to keep our balance one way or another. While you count yourself as one of the lucky ones to have survived the many challenges, it is worth thinking about the next line of action for the future, in this context enrolling for a life insurance policy that’ll serve as your backup plan is the way to go.
Not many people have come to the resolve that they should have an insurance policy in place and this is quite a risky game. Life is unpredictable and there are a lot of uncertainties that could happen.
Take for example the COVID pandemic that hit the entire globe, crippling the economic system. Several people lost their lives, while those who depended on them for livelihood were left helpless.
Others lost their jobs as many organizations had to cut costs, some had to shut down operations temporarily while others went out of business completely. It was quite a challenging time for virtually everyone, with no exception.
No one asked for such a horrible experience, but it happened anyway, this has thought a number of us a vital lesson on futuristic planning.
After COVID, who knows what’s next? Although we do not wish for bad things to continue to happen, wouldn’t it just be wise to prepare for the next uncertainty?
And while life is full of uncertainty or unforeseen occurrence, some things are very certain, and it’s a topic that we often don’t like to talk about – For some, it’s scary, so they shove any topic or conversation relating to it under. But for how long would they keep running away from this reality that stares at us all?
This is why we have decided to treat it in this article. We all have someone depending on us in one way or another – whether this person is an adopted child (or kids) our biological children, our wife, or family members, we must put adequate plans (especially monetary policies) that’ll sustain them even after we have passed on.
Life insurance is an important part of everyone’s life, as long as you still have the opportunity to put away some savings for future purposes.
In case you are not so sure what life insurance is, don’t worry, we will explain it in a simple term to you below.
But before we talk about the importance of life insurance, let’s discuss what life insurance is and how it works.
What Is the Meaning of Life Insurance?
Life insurance is simply an agreement made between an insurer and the person who is subscribing to the policy. In this agreement, it is noted that a foredetermined amount is remitted to their beneficiary when they’ve passed away. In other words, it is a way to determine what happens after you’re either retired or dead, who gets what benefits, and so on.
The beneficiary of a life insurance policy could be a family member, a friend, or anyone who has been registered on the document while the agreement was being signed by both parties (insurer and policyholder).
What is a death benefit? This is the amount paid to the beneficiary of a life insurance policy after the policyholder is dead.
What happens if the policyholder was murdered by the beneficiary? You are not qualified for a death benefit if the beneficiary is responsible for the death of the policyholder.
What can the death benefit of a life insurance policy be used for? The importance of life insurance can’t be overemphasized. It is very useful in many ways as it could help cover so many debt issues too, such as paying up student loans, car or home mortgage, credit card advances, and much more.
Can You Insure Others Too?
Have you ever thought if it were ever possible to insure other people?
Indeed, you can insure those whom you think might be a financial burden to you should anything happen to them, whether your wife or kids. It’s a wise decision to make, especially if you’re financially buoyant to do so.
No one is happy to lose a loved one, however, to preserve your tracks or that of a loved one for years to come, getting a life insurance policy to help sustain those who will remain here is the way to go.