10 Key Reasons Why You Need A Life Insurance Policy - By: Don Saunders

Insurance in general is designed to protect you and your family from disasters and their financial consequences. There are many different sorts of insurance of which the the most important of these is life insurance which provides for your dependents after your own death.

Since there are a number of financial commitments you have to meet throughout life you also need to continue to provide something even in death to ensure the security of the family home, to help the family meet expenses at least for a short time, to protect dependent parents or to secure your spouse and children.

Financial obligations could well include such things as funeral expenses, unsettled hospital and other medical bills, mortgages, business commitments and meeting the college expenses of your children.

Exactly how much insurance you will need varies depending on your lifestyle, financial needs and sources of income, debts, and the number of dependents you are responsible for. Generally an insurance adviser or agent would recommend that you take insurance which is five to ten times your annual income.

As an important part of any financial planning, whole life insurance offers you peace of mind for any uncertainties in life.

1. Adequately planned life insurance will provide funds in the case of premature death to deal with outstanding bills, mortgage payments and living expenses. It provides protection for the the spouse and children you leave behind and serves as a cash resource.

2. It provides security for your estate on death by providing tax free cash that can be used to pay estate and other death duties.

3. Life insurance can also have a pension or savings component which provides for you in retirement.

4. Some plans include riders such as restrictions on the coverage of critical illness or term insurance for the children or spouse. There are particular rules regarding eligibility for riders that you will have to determine clearly.

5. In the case of bankruptcy the cash value, together with the death benefits, of an insurance policy is exempt from creditors.

6. Holding a valid life insurance plan is considered as holding a financial asset which improves your credit rating when you want health insurance or a home loan or business loan.

7. Term life insurance has double benefits as it protects and you can get your money back at important points in your life.

8. Life insurance can be planned such that it will cover even your funeral expenses.

9. Insurance protects your business from financial loss or any liabilities in the event of the death of a partner.

10. It can contribute towards maintaining a family’s life style when one contributing partner dies unexpectedly.

Insurance is vital to good financial planning but you would have to evaluate both your level of personal risk and your long term commitments.

About the Author

Policies, like a whole life insurance plan, give you the security you require for your family and also act as a great form of financial security against which you are able to borrow. So, why not request some of the best free and no obligation life insurance quotes on offer today.

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