Are you covered for 2020? Why you need life insurance now

FOR many of us, a sound financial plan includes having savings, solid investments, an emergency fund, and being on top of our finances and the management of it. One crucial aspect that we often forget is life insurance.

If a life insurance policy is not a part of your current financial plan, financial advisor Granville Knight said that you should consider including it in your 2020 financial goals.

“A life insurance policy is an important part of financial planning. Many people see it as a way of providing for loved ones in the event of their passing, and while this is a fact, there are several other benefits that one can reap from having life insurance coverage,” Knight told All Woman.

Not at all convinced that you should invest in a life insurance policy? Check out the benefits you are missing out on below.

Peace of mind

It’s peace of mind not just for you, but for your family as well. Life insurance offers financial security — it means that even if you are going through a rough patch or you are unable to be there for your family financially, at least in the event of your death your family would benefit from the coverage.

It replaces your income in the event of your death

Life insurance offers the kind of protection that you want to provide for your family if you die, especially if you are the breadwinner or they depend on you for financial support. Getting life insurance would mean that in the place of your regular income the monies received through the insurance company on your passing would be able to sustain dependents.

It takes care of debt you might have incurred

If you have outstanding debt when you pass, such as loans or a mortgage, then at least you won’t have to worry about leaving this added burden on your family.

Insurance premiums increase with age

The older you get, the more premium you will pay.

“For example, if you decide to wait until you are 30-years-old to get the insurance coverage, you will pay twice the amount in premiums on a policy that is say for a million dollars’ worth of coverage than you would if you were 20. So the earlier you apply for your policy the less premium you will need to pay,” Knight said.

He explained that the reason for this is because as you age you become more susceptible to developing health conditions which increase your chances of death. Sometimes, too, some health conditions could disqualify you from getting critical illness coverage, which is an automatic disqualification for life insurance coverage.

It helps you to save money

You can surrender your life insurance at a later date and get back some of the premiums. Life insurance is a consistent method of saving since there is a compulsory investment portion.

It helps for investments

Life insurance is one of the requirements that many lenders ask for when evaluating borrowers for home loans, because it ensures that all or part of your mortgage would be paid off in the event of your death.