Everyone want to lead a secure life. If your future is bright then you can spend a good and wonderful life. Today I will tell your basics of insurance and its benefits. If you’re just getting started in your adult life, there’s a good chance you haven’t given much thought to life insurance yet. But if you have anyone who is financially dependent on you (like a spouse or kids), then you really need to learn about life insurance and make sure that you have the proper insurance in place.
What is life insurance?
Life insurance is an agreement between you and an insurance company to pay money in exchange for receiving a death benefit if you die or after a set period.
What is the purpose of life insurance?
The purpose of life insurance is to protect your dependents against the loss of income if you die. It’s to protect anyone who would suffer financially from your death.
Who needs life insurance?
If anyone would suffer a financial loss if you died, then you need life insurance.
You need life insurance if: You have children
Everyone who has children needs life insurance! Your children would financially suffer if you died. To protect them financially, you should have life insurance in place.
You need life insurance if: You have a spouse
If you and your spouse are child-less but you both work and contribute to pay the bills, you need life insurance to cover the cost of living if one of you should die. However, if you are child-less and one of you does not work, the non-working spouse would not need life insurance.
You need life insurance if: You are a stay-at-home parent
Most people forget that it’s important to have life insurance on the non-employed, stay at home parent. If the stay at home parent dies, the working parent will have to pay someone to do everything the stay at home parent did (and it will cost a lot).
You need life insurance if: You have a private loan with a cosigner
If you have a private loan with a cosigner, you need life insurance because upon your death, your cosigner will be responsible for paying the loan, in full.