Life Insurance – how Important?

Life insurance is essential because it is one of the biggest supports to your family after your death. A good life insurance policy should not only provide money to your family after you but also should provide enough bases for your kids to start off a new life. The family should not fall into a financial crisis after one’s death.

Life insurance is important for you if you feel that your family will suffer economic difficulties after you are gone. There are two types of life insurance policies. One type is the permanent life insurance policy and the other is the term insurance policy.

Permanent or whole life insurance policies are the ones where you pay your premiums all your life. Your beneficiaries will get the lump sum money on your policy only after your death. A whole life insurance policy should be started at as early an age as possible. This helps in payment of reduced premiums, lessening the burden on your wallet. The other advantage of starting at an early age is that you can insure your life with a bigger amount because the premiums are low. These policies also save taxes for you.

Term insurance policies are those which can be taken for specific number of years. It is more like an investment. You can take out or en-cash the policy after the term or lock-in period is over. It does not cover you for life i.e. after the term of years is over; you get only the cash benefit but not the life insurance.

If you do not have life insurance, everything ends with you. Your family does not get any financial help after your death. No one knows the future. If you pass away suddenly at least your insurance will help the family manage the financial loss that you leave behind.