When I heard about the term “life insurance“ I was in grade 7, I was reading a novel, I couldn’t remember it fully, but it was a story about a young soldier who had no wife, but a young daughter whom he was doing everything in his capacity to raise, He was ready to insure all he had for his young daughter because he never wants her to suffer.
Securing a Life Without Dying
My interpretation of the term back then was “securing a life without dying.” I thought a person with life insurance will never die, but the novel opened my eyes to the facts about life insurance.
“I don’t call it “Life Insurance,” I call it “Love Insurance.” We buy it because we want to leave a legacy for those we love.”-Unknown
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A Painful Tale
I ran into a secondary schoolmate of mine recently, we got conversing, then I asked about theme people I had last seen years ago, He went on with his update through narration, then he asked.
“Do you remember Black shadow and his brother in Arts?” He asked.
“Yes, I do”
“After the incidents of their dad, things have not been going on well for them.” He explained.
I dragged him closer as we had to leave the roadside “What happened to their dad?” I asked.
“So you didn’t hear anything? Were you aware they lost their mum back then in Grade 11?” He asked rushing his question. I nodded negatively to both questions.
“Ouch, I see you know nothing. They lost their mum then and she was the breadwinner of the family. The father took over the building of the mother’s land, but he had a critical accident and was on a sickbed for three years.
He is in the worst state right now, so they had to relocate to a small place in Oklahoma City. Black Shadow and his brother’s education suspended.” He fed me in on all the details.
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Life Insurance: If Only They had one
Can you imagine such a scenario? The numerous lives that died with the mother, Although they are still alive, however, their source of living, feeding, etc came to a halt after the death of a breadwinner.
Aside from feeding people from your income, one of the best things you can do is to buy life insurance which can only be done when you are aware of the facts about life insurance.
I remember I once came across something which says “You don’t buy life insurance because you are going to die, but because those you love are going to live.”. Even the Holy book says that A good man leaveth an inheritance to his children’s children.
Death is inevitable for all, the only best legacy that can be left for those behind is life insurance.
What is Life Insurance For?
Life insurance is insurance that safeguards your family, it provides them with a non-taxable amount at the point of death, it includes your mortgage, personal loans like car loans, etc. This life insurance goes on even after your retirement and it gives quality life to your family when things are sour.
Factors to Consider before Choosing Life Insurance
If you are to choose a life insurance policy, there are things to put into considerations, this will guide you into choosing the right life insurance policy. Such factors include; Family, Work situation, Life goals, and Coverage type.
Top 10 Facts About Life Insurance/ Pros and Cons
So many people are scared of life insurance because they have been fed the wrong idea or they know nothing about the facts about life insurance. These facts about life insurance include its pros and cons.
It is a Legacy for Your Loved Ones
As a breadwinner, you are saddled with the responsibility of paying different bills ranging from feeding, paying school fees, etc. But when the unexpected visitors come, your family are left to rally round to pay those Bills. A life insurance plan solves this.
Debt Controller
For a debtor, after your demise, a life insurance plan helps your family clear the debts.
Steady Flow
After retirement, a life insurance plan gives you a flow of money every month even after death.
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Beneficial for Business
A life insurance plan gives death benefits, but it can also boost business depending on the time one opts for. For instance, A term policy secures you for some time until all coverage expires.
Expensive for Old Age People
The best time to purchase life insurance is when you are still young, hale, and hearty as it’s affordable. But at old age, you might be considered a risky buyer and then you’ll be charged a higher premium which affects your expenses.
Some May not Pay the Benefits
Some insurance companies may refuse to give out the benefits to the beneficiaries. This is why research is very important before choosing a company to buy from.
Loan Availability
In times of crisis or emergency, you can borrow a loan from your insurance policy.
Difficulty Calculating Returns
The returns of life insurance accumulate by market conditions and performances which makes it difficult to calculate.
Hidden Clauses
Every policy has hidden clauses, these clauses are not usually documented and it is difficult to find out. Such includes, non-payment in the case of suicide, criminal acts, and death due to overdose.
It is an Investment
It is a means of saving or investing. You can put something aside for rainy days with a life insurance policy considering life has its way of wielding things your way.
SEE ALSO: How Would I Get Cheap Auto Insurance in the UK
Conclusion
Life is a game of risk, if you do it you are taking a risk, not doing it as well is you taking a risk. It is left for you to choose your risk. But the greatest risk you can take is leaving nothing behind for your loved ones.
The only way to safeguard them and buy yourself peace of mind is by buying life insurance and this can only be possible by you reading up these facts about life Insurance.
As a father, mother, spouse, etc you wouldn’t want your loved ones suffering after you. Make this best choice for them today. Make adequate research as regards the insurance policy you are buying, the company, payout rate as well as its hidden clauses.
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