Contrary to popular belief, Insurance is not a one-size-fit-all financial product. It’s beyond life, it’s beyond premiums, it’s beyond maturity values. Today Insurance can be customised to suit your family needs, well being and dreams.

 It’s your life. It’s your family. Make it picture perfect. It’s all about insuring the happiness and joy of a family against any adversity, because adversity could strike anytime.

1.  To ensure continuity of income
Say that your income is used to support yourself and your family. When the time comes and your paychecks stop, the life insurance proceeds can be used to continue to support the family members you’ve left behind.

2.  To pay off any debts left behind
Home loans, car loans, medical bills, and credit card debts are often left unpaid when someone dies. These obligations must be paid from the assets left behind. This can deplete the resources that your family needs. Life insurance can be used to pay off these debts, leaving your other assets intact for your family to use.

3.  To provide liquidity to one’s assets
When one dies, one may leave some liquid assets (such as cash, CDs, and savings bonds), and some illiquid assets (such as real estate, an automobile, and stocks). The illiquid assets may have to be sold in order to meet these obligations when they come due. This may cause a financial loss if the assets must be sold cheaply in order to get the money on time. Life insurance can avert this situation, because the proceeds are available almost immediately upon the death of the insured.

4.  To create an asset for one’s heirs
After the debts and expenses are paid, there may not be much left over for the family. Life insurance can automatically provide assets for them after the death of the insured.

5.  A great investment vehicle.
Some types of life insurance policies may actually make money for you, as well as provide the benefits described above. This can help with long-term financial goals.

Your need for life insurance changes as your life changes. When you’re young, you typically have no need for life insurance, but this changes as you take on more responsibility, and as your family grows. Then, as your responsibilities once again begin to diminish, your need for life insurance drops off.

Let’s look at how your life insurance needs change throughout your lifetime.

Childhood is typically a time of no worries, no cares, and no responsibilities. A child depends on others to take care of them, not the other way around. Thus, there is generally no need for life insurance at this point in an individual’s life.

As a young adult, you become more independent and self-sufficient. You no longer depend on others for your financial well-being. But in most cases, your death would still not create financial hardship for others. For most young singles, life insurance is still not a priority.

Some would argue that you should buy life insurance now, while you’re able and the rates are low. This may be a valid argument if you are at a high risk for developing a medical condition (such as diabetes) later on in life. But you should also consider the earnings you could realize by investing the money now instead of spending it on insurance premiums.

If you have a home loan or other loans, your death would leave your dependents responsible for the entire debt. You might consider purchasing enough life insurance to cover these debts in the event of your death.

Married couples without children typically still have little need for life insurance. If both spouses contribute equally to household finances and do not yet own a home, the death of one spouse will usually not be financially catastrophic for the other.

Once you buy a house, the situation begins to change. Even if both spouses have well-paying jobs, the burden of a mortgage may be more than the surviving spouse can afford on a single income. Credit card and other debt can contribute to the financial strain.

When you have young children, your life insurance needs reach a climax. In most any situation, life insurance for both parents is appropriate. Single-income families are completely dependent on the income of the breadwinner. If he or she dies without life insurance, the consequences could be disastrous. The death of the stay-at-home spouse would necessitate costly daycare expenses. Both spouses should carry enough life insurance to cover the expenses that would result from their death.

For more details about Way2Wealth please get in touch with us at our corporate office –

Way2Wealth
#2, Raheja Paramount,
#138, Residency Road,
Bangalore – 560025
Karnataka
India
Ph: (080) 2121512
Email: contact@way2wealth.com