Owning a life insurance policy is now necessary due to the rise in lifestyle diseases. Such medical emergencies and chronic illnesses are now far more prevalent as a result of poor eating habits and sedentary lifestyles. According to the India Fit Report by GOQii (2019), diabetes has climbed by 40%, blood pressure has increased by 90%, and cholesterol has increased by 135% in Indians under the age of 45. The startling rise in lifestyle diseases suggests that being ready for potential financial emergencies is not only advisable but also required.
This is where having a suitable life insurance policy proves useful. The payouts from your life insurance policy may not only assist you in covering the cost of such ailments, but they may also enable you to plan for and safeguard your loved one's financial future in the event of your untimely death.
Six ways a life insurance policy safeguards the financial future of your family
- Meet Unexpected Medical Expenses
Nobody can foretell when you might have to cope with medical problems and challenges because life is so unpredictable. You can protect yourself from the costs of medical care associated with the conditions covered under this rider with the help of life insurance riders such as critical illness cover.
By choosing such life insurance riders, you can also make sure that your medical requirements are adequately covered without putting your family at financial risk.
- Contribute to your kids' education
By choosing a life insurance policy like a Unit Linked Insurance Plan, you make sure that your children's future will not be in jeopardy in the event of your untimely death. If you have life insurance, designating a portion of the death benefit payout to your children's college fund could prove wise in the event of your untimely passing.
With a child insurance plan, you can also put money aside for your child's education. According to the terms and circumstances of the policy, money from the latter can be withdrawn to pay for your child's education.
- Pay for unexpected costs and your family's expenses.
Your untimely passing shouldn't compromise the standard of living for your family. You could ensure that their financial needs are adequately addressed in your absence by purchasing a life insurance policy. Owning a life insurance policy is much more important if you are the only wage earner in the family.
In such circumstances, your family can use the death benefit payout from your policy to cover monthly and ongoing expenses in the absence of a steady source of income. This payment will therefore assist in making up for your lost revenue. Your policy payouts may also assist in paying for your burial expenses, estate administration fees, and any outstanding debts.
- Protect your Company
If you are no longer able to manage your business while you are alive, a life insurance policy may help protect it. If the business's debt is paid off, it might prevent the family from experiencing total financial ruin.
- Cover Debt Payoffs
In order to protect your loved ones' financial future, you wouldn't want them to have to deal with a large amount of debt following your passing. You can ensure that your loan repayments are covered and your family's financial stability by purchasing a life insurance policy.
Your family members can utilise the death benefit payout from your policy to cover your mortgage, as well as any outstanding loans and credit card debt. When they are still attempting to come to terms with the loss of a loved one, this will lessen the financial load on them.
- Make Retirement Comfortable
You can invest in pension plans that are especially created to guarantee the policyholder a decent retirement. After the age of 60, these types of life insurance plans allow you to receive fixed monthly or annual payouts that will enable you to live comfortably in retirement.
To conclude
It may take some time to choose your own chosen life insurance policy. However, in order to evaluate your life objectives and obtain thorough protection, you must put up both time and work. By doing this, you'll be able to choose a strategy that will best assist you in reaching your objectives in life. But after you've done that, you can relax knowing that even without you, your family will be financially secure.
