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10 crucial motives why an individual call for life insurance

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10 crucial motives why an individual call for life insurance Powered By Docstoc
					Insurance is designed to look after a person and the family from tragedy and fiscal problems. There are many forms of insurance of which, the basic and most important is considered to be life insurance. It provides for the dependents after your death. Since there are specified financial commitments you require to meet throughout life and do contribute in the way to the family income, you need to offer something even in death—to secure the home, help the family meet expenses for a while, support dependent parents, or secure the children or spouse. Financial obligations could include funeral expenses, unsettled medical bills, mortgages, business commitments, meeting the college expenses of the children, and so on. How much insurance a person requires would vary, depending on lifestyle, financial needs and causes of income, debts, and the number of dependants? An insurance adviser or agent would recommend that you obtain insurance that amounts to five to ten times your annual income. It is best to sit down with an expert and go through the motives why you should consider insurance and what kind of insurance planning would profit you. As an important part of your financial plan insurance provides peace of mind for any uncertainties in life. 1. Life insurance correctly planned will on premature death afford funds to deal with monies due, mortgages, and living expenses. It offers security to the family you leave behind and serves as a hard cash resource. 2. It assures your hard earned estate on death by providing tax free cash which can be used to compensate estate and death duties and to tide over business and personal expenses. 3. Life insurance could have a savings or pension component that provides for you during retirement. 4. Some policies have riders like coverage of grave illness or term insurance for the children or spouse. There are certain rules regarding eligibility for riders which you will need to determine clearly. 5. Having a compelling insurance policy is considered as financial assets which improves your credit rating when you need health insurance or a home loan or business loan. 6. If of bankruptcy, the cash value as well as death benefits of an insurance policy exempt from creditors.

7. Life insurance could be planned such that it will cover even your funeral expenses. 8. Term life insurance has double benefits, it protects and you can get your money back at some point in strategic points in your life. 9. Insurance protects your business from financial hurt or any liabilities if a company partner dies. 10. It could contribute towards maintaining a family’s life style when one contributing partner suddenly dies. Insurance is vital to good financial planning and safety measures but you would need to assess your personal risk and long term devotions. Insurance stands a person in good stead throughout life and can be used if of crisis during a lifetime by requesting a withdrawal or loan.


				
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Description: Insurance is designed to protect a person and the family from disasters and financial burdens. There are many kinds of insurance of which, the basic and most important is considered to be life insurance. It provides for the dependants after your death.