Thursday, 23 June 2016

Why We All Need Life Insurance

So as not to sound over dramatic, let's just say life insurance is one of the bedrocks of good personal finance. The surprising thing about life insurance is that as much as there are innumerable benefits from it, many people treat it with a seemingly lackadaisical attitude. This attitude is often borne out from our inadequate understanding of what it truly entails or a conscious effort to avoid the topic altogether.

The only reason why someone may want to opt out of this type of insurance is probably because they have no dependents to worry about. Life insurance has no benefit for the holder whatsoever but it goes a long way to ensuring that their dependents are well taken care of and do not have financial burdens to worry about.

Inadequate understanding of what life insurance entails is usually because of the misinformation being propagated by some inexperienced insurers. A top insurance expert at Greater National Group once said the misunderstanding comes as a result of people seeing life insurance as an investment instead of a risk management tool. The premium cost for life insurance is largely dependent on the type (Term or Permanent life insurance). There is no simpler way of reiterating the importance of life insurance in today's economy situations.

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