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Life insurance is an important part of any financial planning that you do for your loved ones. It is to take care of your family’s needs in case of an untimely death of the breadwinner. It plays a key role in providing your family members with financial security when they need it the most. The right life insurance plan ensures your family members’ financial well-being when you are no longer around.
Investing in the right life insurance plan is an important financial decision since this is to provide for your family in your absence. It is equally important to assess that the death benefit is enough to take care of tuition fee, EMIs, and other family expenses.
Death, disability, or illness can leave your family paralyzed but if have a life insurance plan, you can help your family overcome difficult times. However, there are various other reasons why buying a life insurance plan is essential.
In this post, we will help you learn the importance of life insurance and explain why it is important for you to have one.
Here is a quick list to help you understand the importance of life insurance:
Most people buy a life insurance plan to ensure that their loved ones are able to cope better if they are no more available to provide for them. The death benefit of the life insurance plan helps your family get the sum assured and pay for their expenses in case they do not have your income.
If you are the breadwinner of your family, your income has great value to your spouse and kids. If you pass away unexpectedly, your spouse is left alone to manage grief along with heaps of financial responsibilities. The sum assured will help your family members maintain their living standards along with meeting certain living standards.
Various unexpected and unforeseen events such as injury, illness, disability, or even death can leave your family facing immense grief and stress. The life insurance benefit can help them reduce their financial burden and focus on rebuilding their lives. It also enables the grieving members to get back on their feet by taking care of the urgent expenses.
The same goes with a credit card liability or a car loan. For example, if you die with a car loan or credit card debt, someone needs to take care of them. In most cases, it’s your partner or spouse, if you are married, and your parents or siblings, if not. Having life insurance coverage can help them pay off these loans. The sum assured from your life insurance plan can also help your family members pay your funeral and burial services expenses.
You can’t replace your health with money but have peace of mind knowing that your family members will have some financial assistance extended by the insurance providers.
Some life insurance policies help you plan your retirement by purchasing a retirement plan to receive a monthly income.
A life insurance plan can help you spare your loved ones the burden of financial hardship in case they lose the breadwinner of the family. It lets you predict and prepare for your future expenses, especially for the people with a spouse, children, and/or dependant parents.
The sum assured can help them cover their living expenses and day-to-day purchases like utilities and groceries. Your family can also use the death benefit to pay for your child’s education, personal loan, etc.
Life insurance can be a tool that to help you create a financial plan for the time when you no longer live. It enables you to create an emergency fund and prepares you for unexpected events like death.
In some instances, life insurance in the UAE provides coverage for your business. For example, if you are a business owner and something unexpected happens to you, the insurance company will purchase a specific portion of your business and provide the nominee's payout. However, in this case, the nominee doesn’t get any share in the business.
People often find life insurance plans expensive and prefer investing money in their savings. They must understand that a life insurance plan is there to help their family members after they pass. And when it comes to life insurance premiums, they can reduce the amount by playing smartly.
Among various considerations, the applicant’s age and health affect the premium amount. The younger you are the less insurance premium you need to pay. So, now that you know the importance of life insurance, do not wait any longer and secure a favorable life insurance plan with a reasonable premium amount.You can also visit us at policybazaar.ae and find the best life insurance plans based upon your financial needs. Do not hesitate in getting in touch with our support team if you need any assistance.
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