What is Life Insurance? It is one of those things that one would not like to think and talk about but if you don’t you may leave your family unprotected. In simple terms life insurance provides money for my family in the event that I die.
It is a financial resource for your family and loved ones in case of your death. A “Contract” between you and the insurance company.
• Why should I buy life insurance?
A life insurance policy can be a very inexpensive way to replace your income in the event of your death. It could be viewed as a long-term investment to provide for your child’s future expenses or your expenses, post retirement.
•Do I need insurance?
Family that is financially dependent on you: If you have a family that is financially dependent on you, then you definitely need to insure yourself. The most common reason to buy life insurance is to replace the income lost when you die. For example, if you work and your income is used to support yourself and your family, when you die, your salary stops. The life insurance proceeds can be used to support your family members with the expenses.
Loans or liabilities: It is very important to insure yourself if you have taken a loan or mortgaged your assets. You do not want your family to be thinking of ways to pay off your liabilities, when they are already trying to cope with your absence.
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