Life is unpredictable. You do not whether you’ll see another day or not. Although we all know the truth about life is too short, how many of us are prepared for it? What will your family do if you die?
What if you catch some serious illness with expensive treatment? Have you ever thought about how are you going to pay for it? We bet you have not because no one does! Only those who realize the unpredictability of life prepare for it beforehand. But how?
Life insurance is your best gamble at making the future secure, for you and the family. However, is it enough to encourage you to buy life insurance? Certainly not! Life insurances have more benefits than what is seen by the eyes. Sounds too good to be true? Let us know more!
Advantages of Life Insurance
Apart from making your future secure, what other benefits does a life insurance offer. How can you force yourself into buying one for yourself because investing such a huge amount needs a lot of motivation?
Here is why you should get your life insured today:
1. Death Benefit
If you are concerned about your family’s well-being after you pass away, life insurance will have you covered. Because life is unpredictable and too short to not plan, the best part of getting life insurance is that it compensates your family after you pass away.
Whether natural or accidental, when death takes you away, the immediate family can claim your life insurance and use the money to their best benefit.
2. Replacement of Income
Do you have a debt to pay off? How will your family pay for the kid’s college fee or house mortgage after you have left for your final abode? With no immediate income for the family, survival in your absence will become a challenge, and hence, you need to manage things before it is too late.
Life insurance works as a replacement for income in your absence. The beneficiaries can use it as a means of paying college fees, clearing mortgage and debt after you die. Thus, making it easier to survive.
3. Compensates for the Final Journey
Little do people know that under the life insurance policy, the company is liable to cover your burial expenses? That is correct! If you were wise enough to have bought an insurance plan, your family won’t have to run a Go Fund Me or collect donations to compensate for your burial costs.
4. Covers for Treatment of Chronic Illnesses
If you fall prey to a chronic illness like cancer or any other with expensive treatment, you can easily claim your insurance to cover your treatment, paying for the huge medical bills, which are otherwise impossible to pay for.
5. Inheritance and Tax-Payable
Taxes are hard to pay when you do not have consistent income. Having said that, life insurance money can easily be transferred as an inheritance to the next line in the kin without having to pay a hefty tax.
6. The Best Retirement Plan
No one wants to work when they grow old and hence, what can you do to ensure a consistent flow of income? Save today and use later through life insurance.
Disadvantages of Life Insurance
But of course, with all the benefits you need to deal with a few disadvantages as follows:
1. High Premium
The biggest disadvantage that life insurance comes with is the more aged you are, the more premium you will have to pay. Why? Because as your age progress, the risk factor increases, and thus, to keep complete safety, the company charges a higher premium on the policy.
2. Confusing
Different life insurance policies offer different things. Hence, when buying one, it can be pretty confusing and daunting to choose the right one for yourself.
3. The Company May Not Pay Full Benefits
Even after your life insurance matures, the insurance company may use various tricks to avoid paying full benefits to you. In addition, this is what most insurance companies do so make sure you know the policy clauses by heart so that you do not get tricked easily.
4. Difficult to Calculate the Lifetime Return
Although life insurance does seem an attractive thing to save for the future, when you start calculating the premiums paid over a lifetime and compare it with the net amount, the return is pretty less. Hence, you are tricked into thinking that you will get more benefit while paying less for it although it is the opposite of it.
Conclusion
Although life insurance does offer some serious disadvantages, it has more benefits to enjoy. If you are worried about your family’s future, your retirement, or medical expenses, only life insurance will help you deal with it all easily.
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