The Different Benefits of a Life Insurance Policy
Decisions
made today will inevitably play an important role in the future of
the decision-maker and those dependent on him or her. Because there
are certain events that are beyond anyone’s control, life insurance
is an important part of financial planning.
Buying
Life Insurance is a way of transferring risk. The policy holder
pays a small monthly premium and the insurance company agrees to pay
the amount of insurance (face amount) purchased to the insured’s
beneficiaries. The insurance policy will help the surviving
dependents cover the financial obligations left behind in the event
of an untimely death.
The
proceeds of a life insurance policy can be used by the surviving
family members to pay monthly expenses such as household bills, child
care, medical bills, college education and other costs that may prove
to be a burden to the family members left behind.
One
of the most important uses of life insurance and one of the most
common motivators for buying life insurance is to pay off debts.
Most people have a mortgage and it is important to have enough
insurance to pay it off or greatly reduce it. Life insurance on a
mortgage in the event of the borrower’s passing can be used to
completely pay out the mortgage or the survivors could continue to
make the monthly payments. Choosing the right insurance company and
insurance agent is crucial. A qualified agent can help you choose the
one that best suits your budget and lifestyle, so that your family
and finances will be taken care of, should the unexpected happen.
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