Insurance can be confusing, and it is hard to know what you desire. Here are some good reasons why life insurance policies are a must have. As we move through life, start businesses, get married and build families, we come to a realization that life insurance is a fundamental part of having a sound financial plan. By having a life insurance policy, you will find comfort in knowing funds will be available to protect your family in the event of your passing.
To protect your family and loved ones: If your loved ones currently depend on your financial support, then life insurance is a must as it replaces your income when you die. Life insurance policies are specifically relevant for parents who have young children or adults who would find it difficult to sustain their standard of living if they no longer have access to the income provided by their partner.
To leave an inheritance: Even if you don’t have assets to pass to your loved ones, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries. This is a good way to set your children up for a stable financial future and provide for any monetary needs that will arise.
To pay off expenses and debts: In the event of your death, you don’t want your family to be left with your current debts and expenditures. This includes things like mortgage, credit cards, and loans. Other expenses include funeral and burial costs that can quickly run into the tens of thousands of rands.
To Add More Financial Security:
Like most parents, you probably want to know your kids will be taken care of when you are gone. You not only want them to get a quality university education but to provide for the other life ventures like starting a business or getting married. For this particular reason, additional coverage is essential while your children are still at home.
Peace of mind: We cannot determine when we will pass away. It could be today, tomorrow or 60 years from now, but it will happen eventually. No amount of money could ever replace someone’s life. But more than anything, life insurance policies can help provide protection for the uncertainties in life. It’s one thing you can be sure of any you’ll no longer have to question whether they’ll be taken care of when you are gone.