Why Life Insurance is Important? Life insurance is important because your family is important. Think about this scenario: The worst has happened. You are no longer able to be with your family. But while you’re off enjoying the afterlife, what about the family you’ve left behind? What’s happening to them? Chances are, they’re grieving. Now imagine them facing a life not only without you but without the financial stability that your income brought. Worse than that, they might be struggling to pay not only for your burial but for the roof over their heads. While the grief a loved one cannot be erased with something so mundane as life insurance, the reassurance you can give your family that they will be taken care of is priceless. If you are trying to decide if you need life insurance, consider these scenarios: 1. Are you the sole support for your family? If you are, your family will struggle to manage with the most basic of financial needs when you’re gone. A term life insurance policy would see that these needs are met. 2. Are you a stay-at-home parent? Believe it or not, your time is worth money. What would be the cost of child care if you weren’t there? This should be factored into your life insurance needs. 3. Are you a homeowner with a mortgage?Can your family afford your home if you’re not there? Facing homelessness is a horrifying situation that too many grieving families find themselves in. Leaving enough money to pay off the mortgage will reassure your family of having a home regardless of what happens next. But keep in mind: HDB mortgages already have this built in, so check.
4. Have you cosigned for a loan, or do you have significant debt? These debts will be inherited by your family when you’re gone. Are they financially capable of paying them? Adding them to your life insurance policy means that your family won’t be crippled with worry over your student loans. 5. Are you a divorced parent? If you weren’t around, how would your children cope? Life insurance can be used to cover the cost of child support. 6. Are you a business partner? The death of a partner can destroy a business. Having sufficient insurance can ensure that your business continues after you’re gone. 7. Are you the parent of a special needs child? Their care after you’re gone can be extremely expensive, especially if you’re looking at a group home or other support services. Life insurance can take care of these needs. 8. Do you have a high net worth? Life insurance will assist your heirs in being able to handle inheritance tax and probate. All these things factor into why life insurance is important. A life insurance policy can be the final opportunity to tell your family you love them by making sure of their financial well-being.
Why Should You Get A Life Insurance? When you reach adulthood, you discover the world of financial responsibility. Your life becomes a series of bills, and the money always seems to go out faster than it comes in. So why should you buy life insurance and add to that drain on your wallet? The answer might surprise you. After all, if you’re young, you don’t own your own home and don’t have any children, much less a spouse, you might not need life insurance at all. But the moment you add milestones to your life, you’re also adding in reasons why life insurance is a good idea. Keep in mind that the first thing your life insurance will pay for is your final expenses. Then consider these things next: 1. Your spouse: When you add another person into the relationship, your life changes. Especially if that spouse doesn’t work outside the home or makes a salary that less than yours. Life insurance will assure your spouse that no matter what happens, their financial needs are met. But even if you’re the one who stays at home with the kids while your spouse works, you have value you might not have realized. For example, how much would child care cost if you’re not there? 2. Your children: Kids might not require a lot of money for their expenses when they're small, but that changes as they get older. Also, they might want to go to college someday. How are they going to pay for that if you’re not there? Financial security for your whole family is one of the primary reasons why life insurance is a good idea. This becomes even more necessary if you have special needs kids, or child care payments to make. 3. Your home: That mortgage needs to be paid whether you’re there or not. If this isn’t already worked into your mortgage, then a term life policy can help pay off that mortgage, so your family doesn’t have to worry about where they will live. 4. Your business: Life insurance will keep your business partner from having to shoulder the full financial responsibility of the company you’d worked so hard to create. All of these factors become important when considering your life insurance needs. But more than any of these, is the peace of mind that comes with having life insurance, and the knowledge that no matter what happens, your loved ones will be taken care of after you’re gone.
Engage one of our advisors to know how you can get yourself financially protected.