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Financial Planning & Life Insurance

Life insurance is a common sense way to look after your loved ones, particularly if you are the chief earner in your household.

No one likes discussing death, but it is a fact of life, as is the fact that those you leave behind need to be protected. A good policy will allay any fears you may have for their financial security, as the right policy will ensure that any bills like the mortgage can be paid, as can your children’s educational needs, it can even pay for the care of elderly or infirm parents.

Paying Final Expenses

Unfortunately, it costs quite a lot of money to be properly buried in the modern era, with even inexpensive funeral costs running at $8,000, with more lavish ceremonies costing more than $15,000. As you can see, coffins, burial plot and funeral services do not come cheap. This is a lot of money in anyone’s language, and can erode life savings designed to provide protection for your loved ones.

You can buy pre-need burial insurance, which takes difficult matters involving your death such as burial plot and casket choice out of your spouse’s hands, as well as paying the costs before you die. That said, it is preferable to pick a substantial life insurance policy that allows the beneficiary to choose what way to use the payment.

Mortgage Payments

A mortgage is almost always the biggest expense in any individual’s life. With other bills such as insurance, taxes and so on added to this, stress from financial matters can build up fast, so it is advisable to take care of all these together.

If you take away the main financial provider, suddenly the financial strain becomes too much, and the damn bursts, causing loan and mortgage payments to be missed.

To alleviate this stress, buy life insurance, as the resulting payment will take care of any mortgage or loan payments immediately, avoiding further interest being accrued, leaving you with peace of mind, and your family being able to carry on without worrying about losing their home.

Children’s Education

Usually the best jobs go to college graduates, but the cost of third level education has sky rocketed to around $32,000 a year, so if you want your children to receive the best education, then you must treat it as an investment. Such seemingly exorbitant costs are often well beyond the scope of any student, as well as their family.

Taking Care of Parents

If you parents are still alive, they may need assistance in their old age. They have looked after you all your life, now is the time to show your love for them. If they are in need, it is their adult children who are usually responsible. Their medical care and medications are expensive, and they may not be able to cover the costs with their pensions alone. Choose a life insurance policy that pays for senior care expenses, otherwise, the price may be too high to deal with, leading to stress and anxiety from all quarters.

Being Financially Prepared

Life insurance is a vital component of anyone’s financial plan. A good life insurance policy will guard against financial woe, allowing for a high standard of life for your loved ones.

Importance of Life Insurance Premium

It is not possible to predict the events of one’s life but it is definitely possible to plan and prepare for it beforehand. Life insurance lets you plan your life in case of any contingencies. In addition, it has grown into a smart investment tool too. Among all the other insurance plans, life insurance has been very popular and has been around since a long time.

It is one of the important parts of an insurance plan. Premium is the flexible element of an insurance policy. You can decide on the amount and time interval of insurance you want to pay as per your policy requirement. It is advisable to decide on a yearly premium. Get estimates / quotes from different companies and pick one that caters to your needs in the most suitable manner.

It helps you categories the purpose you want to serve with this policy. Mostly, the primary purpose is protection against risk, but insurance is also used for investment and tax saving purposes. By investing in an adequate insurance policy, you can save on the taxes you pay on your earnings as premium is exempt from income tax.

An optimum premium can be obtained by comparing 2 or more quotes submitted by various insurance companies. Also, within the same company, there are different policies that help you decide on the premium you end up paying.

Life insurance premium is based on three predominant factors:
1. Cost – The expenses of the policy to the insurer have to be considered carefully. It is advisable to keep the costs on a fixed basis rather than on variable basis.
2. Interest – Considering the interest accumulated till maturity is a good parameter that determines the amount of premium payable to you. The eventuality of an incident is fixed, but time is the crucial factor here. And the amount of interest will be a deciding factor for the calculation of premium.
3. Mortality – It is the probability of one’s expected death that becomes a determining factor in the life insurance premium you have to pay out.

Therefore, while insuring life against the unforeseen and unexpected, face-off with reality to look into the matters of life insurance premium.