The Importance of Life Insurance

The Importance of Life Insurance

It is an undeniable fact that choosing a life insurance plan is one of the most crucial financial decisions. Regardless of your current financial situation, nobody can predict the future.

How Important Life Insurance is For You?

Safeguarding Your Family After Your Death

A life insurance policy is designed to provide financial protection to your family after you pass away. It can replace your income, pay for your child’s college fee, source mortgage payments, and much more.

Paying Debt

If you have a property loan, car loan, personal loan, or credit card dues, a life insurance policy can help your family pay for your financial liabilities if you pass away.

Secure Your Long-term Goals

As it is a long-term investment, it can help you fulfil your long-term goals like purchasing a home, planning your retirement life, and much more.

Investment Opportunity

A few life insurance policies provide you with various investment opportunities. You should be mindful of the potential risks and returns before investing.

Affordable When You Purchase at a Young Age

If you are single, you can purchase a life insurance policy at affordable premiums. At a young age when you are in good health, you can secure your future.

Safety Net for Your Business

Life insurance plans not only to protect you and your family. In actuality, a few insurance policies also protect your business venture.

Help Save Tax

If you purchase a life insurance plan, you can save taxes. The premiums you pay to the insurance corporation are eligible for a tax benefit.

Enjoy Peace of Mind

When you have a life insurance policy, you are investing in securing your financial future. Hence, in difficult times it will act as a support for you and your loved ones. Most life insurance policies have flexible terms and allow saving in form of cash value. Hence, you can use the death benefits of life insurance policies for any purpose you like. Also, if you want money during your lifetime, you can avail of the cash value saving.

Forced Saving for Your Future

Most life insurance policies require monthly premium payments. The premium is higher than the amount required to insure you. The additional funds are invested and accumulates as cash value. You can borrow the cash against the policy, or you can withdraw income from it.  

Secure Your Future

If you purchase a life insurance plan, you may feel it as an extra financial burden, but life is unexpected. You will encounter an accident, fall ill, or may face a financial loss. The life insurance policy will protect you in all such circumstances. It will also protect your family after your death. Also, the life insurance riders make your policy more valuable and convenient. You just need to discuss your requirements with a trustworthy insurance agent to decide how much life insurance I need.

What determines the price of an auto insurance policy?

Many factors help determine the cost of car insurance

The amount you’ll pay for car insurance is impacted by a number of very different factors—from the type of coverage you have to your driving record to where you park your car. While not all companies use the same parameters, here’s a list of what commonly determines the bottom line on your auto policy.

  • Your driving record – The better your record, the lower your premium. If you’ve had accidents or serious traffic violations, it’s likely you’ll pay more than if you have a clean driving record. You may also pay more if you’re a new driver without an insurance track record.
  • How much you use your car – The more miles you drive, the more chance for accidents so you’ll pay more if you drive your car for work, or use it to commute long distances. If you drive only occasionally—what some companies call “pleasure use”—you’ll pay less.
  • Location, location, location – Due to higher rates of vandalism, theft and accidents, urban drivers pay a higher auto insurance price than those in small towns or rural areas. Where you park your car (on the street or in a secure garage) and anti-theft features may impact the bottom line as well.

Other factors that affect premium price that can vary from one area or state to another are: cost and frequency of litigation; medical care and car repair costs; prevalence of auto insurance fraud; and weather trends.

  • Your age – In general, mature drivers have fewer accidents than less experienced drivers, particularly teenagers. Insurers generally charge more if teenagers or young people below age 25 drive your car.
  • Your gender – Statistically, women tend to get into fewer accidents, have fewer driver-under-the-influence accidents (DUIs) and—most importantly—have less serious accidents than men. So all other things being equal, women often pay less for auto insurance than their male counterparts.
  • The car you drive – The cost of your car is a major factor in the cost to insure it. Other variables include the likelihood of theft, the cost of repairs, its engine size and the overall safety record of the car. Automobiles with high quality safety equipment might qualify for premium discounts.

Insurers not only look at how safe a particular vehicle is to drive and how well it protects occupants, but also how much potential damage it can inflict on another car. If a specific vehicle model has a higher chance of inflicting damage when in an accident, an insurer may charge more for liability insurance.

  • Your credit – Similar to your credit score, your credit-based insurance score is a statistical tool that predicts the likelihood of your filing a claim and the likely cost of that claim.
  • The type and amount of auto insurance coverage – The limits on your basic auto insurance, the amount of your deductible, and the types and amounts of policy options (such as collision) that are prudent for you to have all affect how much you’ll pay for coverage.
  • NEVER race or religion – It is illegal to use race or religion to set insurance rates. .