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Interesting Facts About Life Insurance

Life Insurance
Written by Adnan Aftab

 

 

Six in ten families in the UK do not have a life insurance policy. A fifth of these families do not have a policy because they think that they cannot afford it. You can easily find an affordable life assurance by asking for life insurance quotes from several companies.

 

Life Insurance

 

 

Life Insurance Covers Risk

 

A life insurance policy is a finance plan that covers the risk of death. In any insurance policy, there has to be the element of risk and there has to be a person/people who are likely to suffer in the event that the risk occurs. Life insurance covers against the risk of death. Your loved ones can suffer financially if you die. To prevent that from happening, you need to have a life insurance policy.

 

 

Why Do You Need Life Insurance?

 

  1. You Cannot Predict the Future

 

The best thing that you can do is to prepare for it. With insurance, you will be in a better situation to handle the uncertainties of the future. You need life insurance. You should obtain life insurance quotes from as many service providers as possible.

 

  1. You Will Not Live Forever

 

You will die one day. You need to plan for your death. You do not have to leave your dependents with hefty funeral costs. You need to consider what will happen to your spouse and children after you die. Will they suffer or will they lead a comfortable life? Life insurance will cater for the financial needs of your dependents.

 

  1. Having Life Insurance Shows That You Care

 

If you care for your dependents, you will take life insurance. If you care, you will not want to live your loved ones with financial burdens after you die.

 

Who Needs Life Insurance?

 

Most people need life insurance | Finance.co.uk. If you have children and a spouse you definitely need it. If there is anyone depending on you and that person is likely to suffer financially after you die, you should take life insurance. Before you take insurance, you need to obtain life insurance quotes.

 

Someone depending on you can be your parent or even a relative. If you are paying school fees for a relative, that relative is your dependent. In case you die, that dependant might not have any means to pay fees.

 

Who Does Not Need Life Insurance?

 

If you are single and you are only responsible for yourself, you might not need life insurance. Those who have sufficient financial resources to support dependants after their death do not require life insurance. If you have raised your children and you live on your own, there is no need for insurance.

 

Remember, Circumstances Do Change

 

You might be single and not planning on getting married in the near future but circumstances might change and you find yourself marrying earlier than you planned. You can have a lot of money today but end up having financial problems in the future. Circumstances do change. Thus, you might not need insurance today but it might reach a point where you have to take life insurance.

 

Life Insurance is a Contract

 

It is a contract between the insured and the insurance company. Thus, it has terms and conditions. Before this contract begins, you must sign an agreement. You need to read and understand all the terms before you sign. If there is something that you do not understand, you should seek the advice of a lawyer. Do not buy insurance before understanding it.

 

You Need to Choose Your Beneficiaries

 

Before you buy life insurance, you need to ask yourself this question: who are my beneficiaries? A beneficiary is someone who will receive the compensation amount after you die. If you are married, your beneficiary can be your spouse. Alternatively, your children can be your beneficiaries. The beneficiary of your policy can be a relative or a charity organisation.

 

You need to review your beneficiaries regularly. If you make someone to be your beneficiary, you should inform that person about your decision. The person should know how to find vital papers and how to file a claim in case of your death.

 

The Bottom-Line

 

If you do not have life assurance, you are putting the financial future of your family at risk in case you die, fall ill, or lose your job. Life insurance is a basic need if you have dependents.

About the author

Adnan Aftab

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