Having a life insurance is one of the best legacies you can have if you have a family. Imagine your family’s status in case you pass away unexpectedly – will they able to cope with the financial problems? Will they be able to effectively deal with the financial obligations you will leave behind? If you are not are one-hundred percent sure that the will do so, then it is time to get know more about this type of insurance.
While many Australians have already realized the great benefits of having insurance, many are still skeptical and oblivious of how it can benefit them. How insurance can benefit me? This question is almost always raised by people considering getting insurance, whether term or cash value insurance. This is completely natural as no person would want to invest his or her money for something that will not benefit him or her or the people he or she loves. To answer this question, let us discuss how this type of insurance can benefit you.
When your insurance premium gets accumulated, you can access it through policy loan or withdrawal from family or business opportunities, education funding, retirement income, medical emergencies, or you may opt to pay policy premiums. This allows you to have a quick and safe access to cash without having the burden to borrow money from other people or to apply for a loan. Needless to say, this can help you get through tough financial times without having to deal with stressful process. When you pass away and you have insurance, your financial dependents like your spouse or children need not to go thorough financial challenges. Life insurance serves as a financial back-up plan and can offset the impact of estate taxes in case of your death. Hence, if your loved ones greatly depend on you financially, you can be sure that they can be financially capable and independent through death benefit of your insurance.
Another great benefit from getting the insurance is that you have access to the assets. If you have cash value insurance, you can be certain that you have access to the assets you have acquired. Hence, if you have cash value insurance, you can be confident that the cash attached to it is guaranteed. It may sound morbid, but the reality is that when you pass away, your financial dependents like your family members may face financial challenges. Insurance serves as their safety net as your death benefit will help them go through financial struggles. Furthermore, after paying for insurance for decades, you will have different options when it comes to access your funds. You may opt to cash in the policy or convert it to an annuity to ensure lifetime income, or keep a portion of the death benefit and access some of its cash value.
One of the reasons why many people prefer cash value life insurance over term insurance is because as long as the premiums are paid, coverage is ensured as long as the person lives. This means even if health status or personal situations change from the day the individual applied for insurance, coverage stays the same. This is one of the main reasons why it is advisable to get insurance at a young age. Despite of the fact that many Australians are already realizing the benefits of having insurance, many are still oblivious about its advantages. Some of them like to think that they don’t need to get one because they believe they are perfectly healthy and that their family members are financially independent. However, the cold hard truth is – they are wrong.