May 19th, 2023
Life insurance is essential for individuals who have financial dependents, such as a spouse, children, or disabled dependents. It forms a crucial part of a solid financial plan. When you marry, have a child, or have a disabled dependent, it becomes your responsibility to provide for them financially. In such a situation, life insurance contract enables you to make good provision for your loved ones. How much life insurance should you go for depends on how much replacement income your family needs in your absence, for, say, the next 20 years.
Life insurance is not only crucial for providing financial security to your dependents, but it can also help ensure that your cherished goals are fulfilled even in your absence. This includes providing a quality higher education for your child such as engineering or medicine or MBA. It can also help in buying a better house. These are some of the essential financial goals for many individuals. To fulfill these goals, it is better to complete premium paying responsibility within the shortest possible time. Limited pay plans are a good option, if you have enough investable surplus at present.
Life insurance is a must if you are in some partnership business, so that in case of premature death of a partner, the other partners can buy the shares of the deceased partner. Even in the case of other forms of business, it is extremely important to insure the life of the key person of the organisation through Key Man Insurance. That makes the organisation able to hire the services of a suitable person who can replace the deceased partner responsible for the success of the business.
Certain individuals among us carry higher than average risks in their lives. The persons engaged in police duty, fire brigades and mining fall under this category. Then there are some people with a passion for adventure sports like mountaineering, deep sea diving and river rafting. All these people are granted insurance cover although with some additional premium.
People who have an adverse family history of diseases such as diabetes and cancer must take life insurance at a very early stage of their life. Also, people with some genetic disorders should go for adequate health insurance.
Due to rapid advancement of medical science, family history need not always affect the health of an individual. Even health issues related to genetic disorders can be kept under control for life. But, if one is afflicted by any such diseases later, she may not be found eligible for insurance cover. Each individual with some genetic disorder and adverse family history should take adequate insurance cover and disclose the details about these material facts at the time of buying the policy. At the most, she may be asked to pay some extra premium which covers the extra risks.
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