Do You Need Life Insurance?

Have you ever thought that when you die, what will be the financial condition of your family? How will they survive? Who will take their responsibility? If not, it is right time to think about life insurance.  To determine whether life insurance is good at this stage, it is necessary to know basics of life insurance.

What It Does

Life insurance can help your loved ones or family members in terms of finance.  It covers most of the financial liabilities like mortgage payment, college fees, medical fees and all other day to day living costs. If you are single and do not have kids, it is also good for you though. It will cover your funeral expenses apart from covering medical and burial bills. Remember, life insurance is also covering your business and personal debts.

Who Needs It

Most of the people think that they are single and do not need to cover life insurance at this stage. They are inevitably living in the fool’s paradise. Life insurance is an amalgamation of many benefits.  When you get married, it will help your spouse financially. When you die, it will cover all expenses of your children.  Besides, if you are single and not planning to get married. Life insurance will help your other family members to finance them after your death.

What Kinds Are Available?

Generally, there are two main types of life insurance – permanent insurance and term insurance.   Permanent insurance is meant to cover your lifelong protection and term insurance is meant to cover a certain period of time – 10 years to 20 years.

Unlike permanent, term insurance is generally availed to cover set amount of time. Mostly people take term insurance when their children are studying and they have too much debt to pay. On the contrary, you have more benefits in permanent insurance. Hence, if you wish to protect your children financially, life insurance policy is the best tool to exploit.