Lifestyle

Do You Need Life Insurance?

Life insurance is an important investment for parents of young children, those who support a spouse, disabled adult, or child(ren). It is challenging for some people to determine whether they need to buy life insurance or not. This article will help you determine the top life insurance plans you can purchase.

Reasons why you need life insurance

1. Protect your family and loved ones

If you are the sole breadwinner, life insurance is a must. It will be difficult for your loved ones to sustain their standard of living when you are gone. Besides covering the funeral costs, you need to ensure they are comfortable with their day-to-day lives after you die. It is not an easy feat, but you can do it with the right insurance cover from MoneySmart.

2. If you are in a high-risk job

Premature death can lead to loss of income and have catastrophic effects. However, if you plan ahead, you can avoid all these uncertainties. If you are in a high-risk job, for example, aviation, construction, mining, natural gas, oil, or firefighting, you should buy life insurance from MoneySmart. Unlike people who sit behind a desk all day, people in high-risk jobs have higher chances of dying. This goes to the people who have extreme hobbies like skydiving, scuba diving, or rock climbing. It is not prudent to change who you are, but you can secure the future of your kids and family with life insurance. However, if you are in a high-risk job or hobby, your life insurance premiums will be very high because you are always at risk.

3. Leave an inheritance

Even if you do not have an estate or assets to pass to your heirs, buying life insurance is enough. You only need to name them as beneficiaries, and you will set your kids for the future. Although this depends on the type of life insurance you purchase, leaving an inheritance is a guaranteed outcome.

4. Adding financial security

It is essential to ensure that your kids have financial security. You can ensure that they go to college, start a business and your spouse can live comfortably after you are gone. Visit the MoneySmart website to learn more about their top life insurance plans.

5. Peace of mind

Do you know how comfortable it can feel knowing that your family’s financial security is guaranteed? Even though we cannot know when we will pass away, life insurance can protect against uncertainties in life. With life insurance, you will have peace of mind knowing that everything will be fine after you are long gone. Most people do not have the privilege of saying goodbye, and purchasing a life insurance policy can prove to be a good investment.

Top insurance plans

Now that you have researched and decided to buy life insurance, do you know the top insurance plans you should buy? Here are the insurance plans you should consider:

Whole life insurance

This type of life insurance offers a lump sum payout if you have a terminal illness or die. Sometimes, you enjoy possible cash returns depending on the type of plan you’ve chosen. A whole life insurance policy is ideal for homeowners, young adults, and professionals.

Term life insurance

Term life insurance offers you and your family a lump sum if you are terminally ill, disabled, or dead – up to a certain age. You need to choose a term, for example, 75 years, to enforce life insurance. Graduates and first jobbers should get term life insurance to help them cope with life as they start working.

Universal life insurance

This type of life insurance is offered to high net worth individuals mostly. The plan offers the whole life insurance benefits, although you can change the sum assured and premiums. This is the ideal life insurance plan for those planning to leave a legacy.

When looking for the right life insurance plan, do you know where to start? You should start with an online search because you can rely on plenty of information. However, you should be cautious to avoid being scammed or choosing the wrong life insurance plan. With the help of online calculators, you can get a quote and choose the right life insurance plan depending on your needs, budget, and preference. Visit the MoneySmart website to learn more.

Huynh Nguyen

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