Future Security: Benefits of Life Insurance
Be
it for the children's education or for emergencies, savings can
greatly help in keeping the family’s finances stable and secure. A
form of saving that can benefit a family at a later time in life is
life insurance.
Life
insurance is meant to provide for the family's various needs in the
event of an untimely passing. Given that most families depend on a
steady paycheck coming in each week from one or both adults in a
family, it becomes a practical necessity to have a policy that covers
family debt like a mortgage, daily living costs and expenses.
For
retired individuals, life insurance can serve as a secure source of
income if it has a savings component that accumulates significant
cash value over the years. They can utilise these funds to supplement
retirement income or use it to invest in other sources of income.
This is proof that insurance plans can be a long-term savings
strategy.
Obligations,
such as mortgages and other debts, unfortunately do not cease upon
the passing of the borrower and this debt will be passed on to the
surviving family members. Fortunately, an insurance policy can be
used to cover these debts, consequently protecting the family from
financial hardship.
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