Reasons why you need life insurance

The reason we have insurance is plain and simple. It is designed to protect any family from a sudden and calamitous disaster and any financial demands that it might place on them. There are many variants of insurance on offer, but perhaps the most basic kind of insurance you can get is life insurance. Life insurance, as its name suggest, insures life and so the future of your dependents and loved ones will be protected in the event that anything happens to you. Just as you meet financial commitments throughout life and contribute in some way to the family income, you need to do so after passing on as well. You need to secure the home, help the family meet expenses for as long as you can possibly provide for and help the children and the spouse get by in tough times.

There are several financial obligations that pop up in life and beyond as well. Funeral expenses, for instance, can be quite significant as too outstanding medical bills. Then there are possibly mortgage payments, business payments, college expenses and so on to look after. How much life insurance you must take on depends on multiple factors. It is dependent on your lifestyle, your financial needs and your sources of income as also how many dependents you have. Most insurance agents would suggest that you take insurance totaling somewhere between five and ten times your annual income. Your needs for insurance are very particular to your circumstances ad according to them you need to come up with an insurance plan that suits your needs.

Correctly planned, life insurance will provide much needed funds to your dependents so that they can deal with expenses even after your death. It is a sense of protection that it provides and it serves as a cash cow to be milked for some time. This is tax free cash that has been provided solely to provide for your family. It can also have a savings or pension component that looks after you even during your retirement, and again that depends on your circumstances and needs. Less than an expense, a life insurance policy is a financial asset that can positively affect your credit rating if you need to take out a home loan or if you are seeking health insurance. The reasons for taking life insurance are compelling and many, and if you haven't done so till date, go get yourself insured right now.