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Reasons Why You Need Life Insurance

When you’re young you feel invincible and you think you will live forever. I wish that was true, but we all have to say goodbye one day. Are you going to be one of those people who are fully prepared, or are you the risk-taking type that will leave it up to chance? You should be looking into life insurance as soon as you start working and we’re going to go over a few reasons why it’s so important. It’s your choice at the end of the day, but you’re taking a big risk not having any.

life insurance policy

Paying for a funeral

It’s quite expensive to pay for a funeral these days. Nobody just digs a hole in the ground and throws you in, so you have to pay around $10,000 for the pleasure of being buried. You don’t have anything to worry about where you’re going, but the burden will be left with your family if you don’t have enough money to pay for your own funeral. They’ll already have enough on their plate without trying to scrape money together.

Protect your loved ones

What do you spend all of your money on at the moment? I bet a lot of it goes towards the family. You pay for your children’s education and help them out with their first car. They will come to you in the future and ask you for more favors and you’ll be more than happy to say yes. What will happen if you’re not there and they can’t ask you for help? By taking out life insurance you are providing for your family long after you have gone.

Don’t leave anyone with debt

Anyone can get into financial difficulty and it’s hard to get out of it. You work hard every month and little by little you try to dig yourself out of the hole. You won’t be around to pay off your debt if something tragic happens to you and it will be up to your family to repay the money you owe. You can’t leave your family with your debt because it’s one of the most horrible things in the world. I know you would never dream of doing it intentionally, but accidents can happen at any time.

Anything could happen

Take out a life insurance policy now while you’re still young. Once you get older you might find yourself with an illness and it might not be possible to get one anymore. Even if you are allowed one your monthly premium will be huge and it will take a big chunk out of your wages each month. Don’t play about when you have no idea what is going to happen in the future.

A financial asset

Did you know that your life insurance policy is a financial asset? It has a monetary value and if you ever end up bankrupt it can’t be touched. It will improve your credit rating and if you ever need a loan it will help you get one. You know you will need it eventually, so just imagine you’re putting money away each month into a savings account that you won’t be able to touch any time soon.

Peace of mind

Everyone always feels safe when they have something to fall back on. If you have life insurance you will have more peace of mind because you know your family will be protected once you are gone. It’s a great feeling to have because when you’re ever in any trouble it can take a weight off your mind. You might only pay a few dollars per day and I know your mental well-being is worth more to you than that.

How Relevant Life Insurance Affect Your Insurance Plan?

The Relevant Life Policy cover today has emerged as one of the potential tools of employee retention in the hands of employers of small companies. It has only been a year or so since this policy has been so popular among small companies with a little over 5 employees. The Relevant Life Calculator has also acted as one of the key factors in deciding whether one would at all avail the relevant life policy or not.

I need life insurance

The benefits of Relevant Life Insurance can be availed by employers of Limited companies who want to provide death in service benefits to their employees. The company size should be small, meaning it should not have as many employees required for justifying a Group Insurance Scheme. The benefits of Relevant Life Insurance are not considered to be part of pension allowance and are particularly good for individuals belonging to the high-income group.

Now that you are fairly equipped with the knowledge of the benefits of Relevant Life Cover, you need to discover how the Relevant Life Calculator plays a decisive role in the customer’s decision of buying a relevant life cover. Let us find out how:

By determining how effective the cover is: The employer may jolly well decide what kind of employee retention techniques he is going to adopt. It is definitely up to him to decide what kind of insurance he is going to provide his employee as part of that employee retention technique. A Relevant Life Policy is generally preferred by small-time employers owing to their tax-friendly benefits. However, since the employee is named the beneficiary here, the employer has to prove how effective the policy stands for the employee. This can easily be done by the Relevant Life Calculator. It helps the employer to effectively demonstrate and thus establish the difference in expenses for investing in a Relevant Life Policy and those which would have been borne by the employees if they sponsored their insurance on their own. This helps the employers to convince the employees duly.

By facilitating the entire transaction

The entire process of calculating the monthly expenses or premiums becomes much easier with the calculators. You just have to enter the required tax rates, national insurance rates, and some other factors like the corporation tax rate, the premium amount, etc. This has emerged as a viable option for customers where they can process the required information quickly by just some clicks of the button. They don’t have to wait for the insurance agent to carry out the calculations for them and then decide.

By helping customers figure out differences in premiums offered by key carriers

Before availing a Relevant Life Cover, You are required to compare the premiums offered by the leading insurance carriers in the market to ensure the best deals for yourself. The Relevant Life Calculator helps you in a major way to do that only.

Thus it can be safely said that the Relevant Life Calculators partly play a significant role in aiding customers to zero in on their most important moot points of taking the insurance from a particular company and that is the premium. Thus most of the carriers today have integrated this feature into their websites to aid potential customer’s process relevant information quickly.

Does Life Insurance Pay Benefits After Suicide?

When it comes to the death of a loved one, no matter how prepared we think we are, it’s always a shock. When the death is by suicide, that shock is compounded. In the middle of such a whirlwind event, the business of life insurance may be the furthest thing from one’s mind, but it invariably must be dealt with.

Life Insurance

We are all aware that buying life insurance to protect our loved ones in the event of our death is the responsible thing to do. After all, that is what life insurance provides: protection, most notably in the form of whole and term life insurance. When choosing a suitable policy, it is important to understand that most life insurance policies have certain clauses. These clauses are set up to protect the insurance companies from fraud, among other things.

The Suicide Clause

In the past, most insurance policies had suicide exclusions. This means that if the policyholder committed suicide, the insurance policy would not payout. Insurance companies look to cover “unforeseen” events, and in the case of suicide, certainly, the policyholder knows the death is imminent. To the beneficiary, however, it’s just as unexpected as any other event leading to the death of a loved one.

Over time, insurance companies altered their practices regarding suicide. Instead of flat out refusing to pay out, most policies have changed the suicide clause. This clause states that for an insurance policy to pay after a suicide, the policy must have been in effect for a specified amount of time, typically between one and two years. This way, the insurance company doesn’t look bad for denying someone’s grieving family, and it helps to deter those misguided souls who would take out a life insurance policy thinking that they can better provide for their families from the grave.

Other Considerations

In some cases, even if the exclusionary period (also known as the contestable period) has passed, some insurers will pay out only part of the policy. Some insurers will pay only if it can be proven that the suicide was due to mental illness. It is important to note that even though most insurance policies will not pay out if the insured commits suicide during the exclusionary period, many will pay back any premiums that have been paid into the policy. Sometimes they will pay back premiums and interest.

While suicide is devastating to those left behind, it is important to be aware of what one’s insurance policy covers in such a devastating event. Make sure that you know the provisions of your policy when you purchase it so that nothing in it catches you or your loved ones off guard.

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