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Life insurance is a popular form of insurance, although there are still people who do not see its essence.
They are many types of life insurance policies, but the basic idea is the same. The cover will compensate for your death.
So, why would you want compensation for your death?
There are many reasons behind that. In the sections below, we are going to explore the five top circumstances that should prompt you to pay for a life insurance cover.
Table of Contents
3 Reasons Why to Buy Life Insurance
1. If you Have Dependents
If you have people who depend on your financially, you should not look for any more motivation ins order to get a life insurance policy.
These people could be your children, spouse, siblings, elderly parents, or any other person who depends on you for their wellbeing.
These people would suffer if you died, and they had no one to take care of them.
Life insurance coverage pays a certain amount when you die. The amount goes to the beneficiaries you had listed in your insurance cover.
The people who depend on you would get that amount to ensure they are in a position to weather the challenges that would come as a result of your demise.
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2. If you Own a Business
If you own a business, you may need to ensure it continues functioning well, even when you are no more.
At times leaving it in the hands of your family or managers is not enough to guarantee that it will always perform well.
There is a type of insurance coverage that would help determine who would take over the business and ensure that the company continues functioning correctly.
That would include financial assistance to the company if needed. The main essence of such a cover it to protect a business that heavily depends on your presence.
» MORE: Is Life Insurance Taxable?
3. If you Have Debt or are Planning to get into Debt
If you are planning to get into Debt or you already have Debt, you might need to get a life insurance cover that would take care of it, if you were to die.
This would be in the best interest of your loved ones. Picture this, you die, and there no one to earn and service the Debt, and your property or savings need to be to seized to recover the Debt.
Your loved ones would probably be left with nothing, and likely pressure from lenders to pay up.
Many people tend to look at life insurance as an investment. Life insurance is more of a risk management measure than an investment.
However, nowadays, life insurance policies are supposed to have a maturity date. That means that the system will mature at some point, and you will be paid a certain sum assured.
That means new life insurance policies are doubling as investment options. Most policies will pay you a total amount of the premiums you have been paying plus a little interest.
Insurance companies are becoming innovative in attracting more customers.
