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Life insurance creates security for
you and your family. It can be used to:
Any way you look at it, life
insurance is a valuable part of a sound
financial plan.
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An Instant
Estate:
Few individuals, particularly with the
responsibility of a young family, are in a
position to build an estate of significant
size. But you can create a substantial
estate with your first payment into a life
insurance plan. This is a low-cost way to
assure your family's continued financial
well being.
Money in Hand –
Quickly:
Your beneficiary, the person you name to
receive the insurance money, will be paid as
soon as the insurance company has the
necessary notification. By contrast, savings
and other assets may be tied up legally for
some time after death. The other big
advantage of life insurance is that the
proceeds are paid out on a tax-free basis.
People with
Responsibility for Others:
You need life insurance if other people
depend on your income. Children, until they
become self-supporting, are usually
dependent upon the earnings of one or both
parents. Or, your dependant could be a
spouse or perhaps a parent.
Income is not
the only support you may provide your
family. The contribution of a spouse looking
after children, for example, has a
significant dollar value. Death could mean
financial hardship for your survivors if
they must pay for outside help with
childcare and all the other necessary roles
in managing the home.
As well as
making up for the loss of your income or
economic contribution to the family, some
insurance may be needed to take care of
funeral costs and other immediate expenses.
Possibly, too, there are debts to cover such
as a mortgage.
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People without
Family ties:
No dependants, no insurance need – right?
Wrong. If you are single or you and your
partner are both working, insurance can
still play an important role in your
financial security plans.
Consider for a
minute what expenses you might leave behind
– legal fees and taxes, perhaps medical
expenses and so on. Money would be needed
too to cover your unpaid bills and any debts
you might have including possibly a
mortgage.
Look, too, at
how life insurance might help you. Perhaps
you'll use it as collateral if you want a
loan at a favorable interest rate. Or, as
you'll learn in the section on permanent
life insurance, you can borrow against the
cash values of the policy itself.
A cash value
policy can be the stepping-stone to the
lifestyle of your dreams. Many a time it is
a life insurance policy which helps launch
or expand a business, finance a home or
cottage, or create the opportunity to enjoy
an early retirement.
Financial
Benefits YOU Enjoy:
Some people have the idea that insurance
pays only if you die. That's not the case at
all. In fact, more life insurance money goes
to living policy owners than to
beneficiaries. By choosing permanent
insurance, a type of policy that builds cash
values, you are creating not only an estate
but also savings for yourself, including a
potential source of retirement income.
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