Blogs

People do not realize why they need life insurance. They think they can get by fine without it. That is mostly because they need to see the reality of how beautiful life is now, and what it takes to keep it that way.

Pause for a second, and think how your life is running now. Let’s assume, like most Nepali Families, you have a two income sources. You two have worked hard and are earning income for your family, and life is going smooth among friends, relatives and neighbors.

Now, like life mostly does, god forbid, one of you dies, and the second income stream goes away. Would your surviving loved one be able to take care of all expenses with the remaining income source? Or would drastic measures need to be taken just so the remaining members can survive. Just stop and think for a second.

Now, on the converse side. You two keep earning like you have been doing for a long time, and you can still reap the benefits of savings on term life insurance. Most insurers in Nepal offer a very substantial bonus fee which you can enjoy once the term is over.

Human life and health is uncertain, anything can happen tomorrow- your health may deteriorate, you may run into accident, or sudden demise but let’s pray nothing happens to you but you can be prepared if that sort of incident happens  that’s why purchasing life insurance provides you lots of benefit like:

The cost of a funeral can easily cost thousands, and you don’t want your wife, parents, or your children to suffer financially in addition to your emotional death. Life insurance policy might cover all the funeral expenses relieving your family from covering financial expenses of your demise.

This is the most important aspect of life insurance that one needs to factor in. Your family is dependent on you even after you’re gone and you certainly don’t want to let them down. Whether it’s for replacing lost income, paying for your child’s education or making sure your spouse gets the much-needed financial security, life insurance could save the day for your surviving dependents.

Like most parents, you want to be sure that your kids are well taken care of and can afford a quality college education. For this reason, additional coverage is absolutely essential while your kids are still at home. Life insurance can definitely cover those expenses if you opt for a better life insurance policy.

As a general rule, life insurance for young adults is less expensive the younger you are when you initially purchase it. Though you have to pass a health check-up examination. And premiums might get little costly though you are young if you have bad habits like smoking, drinking, or narcotic drug use. But on the plus side you can save more if you buy life insurance earlier in age.

Like most parents, you want to be sure that your kids are well taken care of and can afford a quality college education. For this reason, additional coverage is absolutely essential while your kids are still at home. Life insurance can definitely cover those expenses if you opt for a better life insurance policy.

If your significant other had passed away while the kids were young, you would’ve needed to replace their income, which will be essential. you also would’ve needed to hire help for domestic tasks that you both shared like cleaning the house, laundry, cooking, helping with schoolwork, and carting kids to doctor’s visits.

Many young professionals are looking for investment options for their savings. For these individuals, a variable life insurance policy can provide a good addition to their investment portfolio, as it allows investments in stocks, bonds and mutual funds. These investments can allow your cash value to increase more quickly, though there are some investment risks. When choosing a policy with an investment feature, you can limit your risks by choosing one with a guaranteed minimum death benefit.

If you become terminally ill and are in need of cash to cover medical and other expenses, you may have the option of selling your policy to a viatical settlement company at a discounted price. In exchange, the settlement company would make the premium payments and in turn collect the amount of the face value upon your death. While the amount you would receive in this case is less than the amount your beneficiaries would receive, if you continued premium payments and they inherited the amount, the lump-sum cash payment can come quite in handy if you have no other cash resource.

Estate taxes can be steep, so having insurance in place to pay them is essential to avoid jeopardizing assets or funds built for retirement. Use of insurance for this purpose is most common in large estates, and uses permanent (rather than term) insurance to ensure that coverage remains until the end of life

Who wouldn’t like their retirement savings to last until they do? With a life insurance plan, you can ensure you have a regular stream of income every month. Putting money in an annuity is like a pension plan- put in some money regularly in a life insurance product and enjoy a steady income every month even after retirement.

In the event that you die during your life insurance term, payouts to your beneficiaries are typically tax-free. Not only does this mean your money goes straight to them, but it also means you can do less math. When you’re deciding how much to get insured for, you can work out your family’s future needs without trying to calculate what happens if the tax code changes over the next couple of decades, which means you can put away the calculator and the crystal ball.

You can take out a loan putting life insurance as collateral. Every person wants to increase their investment or earning portfolio for this reason they would like to invest in certain securities or acquire assets or may want to buy a house, for this reason some may not have disposable income to spare so those  people can easily acquire a loan. 

Check out 7 Reasons to Buy Life Insurance when You Are Young  

Infographic source: https://www.gerberlife.com/blog/blog/do-i-need-life-insurance-infographic/life-insurance-quiz/
// //