Why Do You Need Life Insurance?
At A-Kan Insurance Ltd. we understand the subject of insurance can be a grim and sensitive one. But also extremely important to consider, especially if you have dependents or unfinished business. The truth is, human nature dissuades us from thinking about death and dreadful thinking associated with it.
What happens when a person who earns for the family meets an untimely death and leaves behind debts or no support system for their loved ones? The family
members’ lives are further shattered because they have to face several difficulties including inheriting debts of the deceased and having no source of income that could pay off bills and put food on the table. They could even lose the roof over their heads because they are unable to pay the mortgage. We don’t want that happening to you.
Even though nothing could fill a person’s replacement, A-Kan life Insurance ensures the next best thing for your family. In your unfortunate absence, we could take care of your loved ones with the money you invested.
Benefits of Life Insurance
Here are some more reasons why you should get the protection of life insurance.
Protection Of Family Members And Loved Ones.
If your family members rely on you to provide them with financial support, then life insurance is a necessary step in securing their livelihood. More so if you have young children or a life partner, that are both are incapable of providing for themselves. You have to consider enough money that should cover everything; day to day needs of children and monthly expenses as well.
An Inheritance For Your Children
You can protect the future of your kids with the money you invest in life insurance. This could set their life and shield them from any financial perils such as student loans or heavy wedding expenses. It does not matter if you do not have actual valuables or inheritance to leave them with, your life insurance policy can make them the beneficiaries in case you are gone.
To Clear Off Debts And Other Expenses
You wouldn’t want to part your loved ones with the burden of outstanding debts in your name when they are already suffering your loss. Suddenly finding themselves with debts such as paying off the mortgage, credit card, and car loans can become a very tough situation if the family has no other source of income. Not to mention if they also have to deal with expenses such as funeral, arrangement, service and burial costs, all of which can easily mount to tens of thousands of dollars.
Extra Layer Of Financial Security
Life insurance becomes a vital aspect of building security as you get married, start a family or business, and suddenly find yourself responsible for people other than your own. To give yourself peace of mind that in case you are gone, you’ll have something left behind that will take care of your responsibilities.
Universal Life Insurance
With the help of Universal Life Insurance, your family will remain unburdened of taxes, in case you, the primary income generator, pass away. Instead of laying out term coverage, Universal life insurance secures your family for a lifetime. Your investments are sheltered from taxes. The policyholder controls the nature of investments instead of the insurance company.
Whole Life Insurance
Whole Life insurance is also for a lifetime, this type of insurance requires fixed premiums plans for about 15 to 20 years and can be renewed without a medical’s examination. An investment account takes up a portion of your premium from which a sum of money is paid regularly. Since this insurance policy provides death benefits and tax-free savings for you and your family, premiums are a bit higher than other types of insurance.
This is the least expensive form of life insurance available. It protects your family against income loss for a fixed period of 1, 5, 10, 15, or 20 years. You can also purchase a term life insurance plan that covers you to a certain age, such as 65, 75, or 80. Your premiums will stay level throughout the term during which you are covered, but will increase if the policy is renewed. When the term ends, you may or may not need to provide medical evidence in order to renew. Death benefits are paid only if you die during the term covered by the policy.
This type of insurance also lasts for life. Some whole life policies require premium payments for only 15 or 20 years. A portion of the premium is assigned to an investment account, from which dividends are regularly paid; the amount depends on the investment success of the insurance carrier. One disadvantage of these policies is that premiums are significantly higher than for term life insurance. On the other hand, premiums do not rise and death benefits are paid out tax-free.
Universal life insurance policies are considered an excellent choice for families seeking to avoid large sums in taxes should a primary income earner die prematurely. These policies provide lifetime rather than term coverage; a portion of the premium is assigned to an investment fund partially sheltered from taxes. Unlike the case with a whole life insurance policy, the nature of the investments is controlled by the policy holder and not the insurance company.