Insurance Article, The Insurance Times 2020, The Insurance Times January 2020

A pleasant gift to Mankind

There is nothing more reassuring than knowing your loved ones will be taken care of after you are gone. Often people are uncomfortable acknowledging LifeInsurance. It providespeace of mind, which is priceless. That is why it is a Pleasant Gift to Mankind.

There is nothing more reassuring than knowing your loved ones will be taken care of after you are gone. Often people are uncomfortable acknowledging that they need life insurance simply because they are uneasy thinking about the concept of death — especially in relation to their own. But while discussing death can be difficult, planning and purchasing life insurance is one of the most loving ways you can provide for your family, friends and others you care about.

If you have significant financial obligations, a spouse or dependents, you should seriously consider life insurance. Without adequate life insurance coverage for yourself, your loved ones could be left swimming in a sea of debt after you are gone. The next time you sit down to pay bills with your partner, consider: Who would pay for your portion of the mortgage in the event of your death? What about your child’s activities, clothes, health care and possible college tuition? Life insurance provides a means to cover these expenses, in addition to medical bills, funeral costs, taxes and more. This type of coverage also allows you to leave a legacy in the form of an inheritance to your children or other beneficiary, such as a charitable organization, after your death.

There are two basic types of life insurance — temporary and permanent. Term life is considered temporary life insurance as it provides flexible, lower-cost coverage for people who need coverage for a period — generally from 5 to 30 years. Whole life insurance, on the other hand, is referred to as permanent insurance because it builds up a cash value and affords continuous protection for as long as the premiums are paid.

When compared to whole life insurance, term life insurance offers the most amount of protection for the least amount of money. Term life insurance can also be a less expensive option for families with limited budgets. The basic idea behind term life insurance is simple: If you die during the time frame specified in your policy, your beneficiaries will receive your policy’s proceeds.

We carry six basic risks in our life.

  1. Death

2. Disablity

3 Unemployement

4. Sickness

5. Living too long

6. Dying too early.

Life Insurance is basically compensating for the economical loss not the emotional loss. But both are interconnected. It provides safety net for the family in case of unfortunate events, fulfils the dreams for children like education, marriage, and business start-ups. It provides during retirement. It helps leading golden life during golden years.

There is a very popular saying in Hindi “Money Hai to Honey Hai”

Hindi Movie’ ’Bagh Baan’’ depicts so much about retired life. They are not just movies or stories but are facts in society.

Review Your Policy

Over the course of your lifetime, you may want to combine shorter- and longer-term policies to accommodate your family’s changing needs. To ensure you have enough coverage, review your life insurance policy with an insurance agent each time you make a significant change in your lifestyle — not just when your term expires, or your policy is up for renewal. Here are some specific life events that may require an increase or decrease in your life insurance coverage:

The birth or adoption of a child.

Marriage or divorce.

Buying a home or downsizing to a smaller residence.

Changing jobs.

With Internet scams and mail fraud on the rise, it’s becoming increasingly important that you do your homework when dealing with unfamiliar insurance companies. If you receive a life insurance offer that sounds too good to be true, chances are, it is. Most insurance companies have financial strength ratings from independent organizations such as A. M. Best Company, Standard & Poor’s and Moody’s Investor Services. To verify insurers’ authenticity, look for companies with “A” ratings or better. Or, check prospective insurance companies’ complaint records with your state department of insurance.

It’s never easy to talk about dying — particularly your own death. But you may find that the subject of mortality is much easier to face when you know that your affairs are in order. In fact, many find great comfort in planning the legacy they will leave for loved ones. that they need life insurance simply because they are uneasy thinking about the concept of death — especially in relation to their own. But while discussing death can be difficult, planning and purchasing life insurance is one of the most loving ways you can provide for your family, friends and others you care about.

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