Importance of life insurance
Life insurance is the most essential type of insurance if you are a breadwinner or have children. The money that is left behind when you pass away can go a significant way to replacing your income for living expenses.
Do you need life insurance?
Take a look at your financial responsibilities. If you are playing a financially supportive role in the life of somebody or many, you need to make sure that they will be able to cover living expenses if you are no longer there.
- Leave an inheritance
Ensure your loved ones are taken care of financially by naming your kids or spouse as beneficiaries on your life insurance policy. - Pay for the funeral
Funerals can be expensive. If you don’t have funeral cover, your family can pay for such expenses using your life insurance money. - Pay off debts
Your life insurance can be used to pay off outstanding debts such as car loans, home loans and personal loans. This means that your family won’t have to be burdened with any additional costs.
Choosing the right insurance cover
- Identify the amount of money that your family would need to survive
- Choose an insurer that you trust and let them help you choose insurance that will grow with your needs
- Keep up payments so that your insurance doesn’t get cancelled
- Rather go for lower premiums that you can be consistent with
- Review your insurance products regularly