A life insurance policy allows a person to provide financial security to his/her family. Hence, it is essential for every earning person to buy a life insurance policy.
Read this article to know more about who should buy a life insurance policy.
A life insurance plan is essential for providing financial security to the beneficiaries of the policy. When a person purchases a life insurance plan, the insurer provides financial security to his/her family in case of an unfortunate event.
For instance, if the policyholder passes away during the tenure of the policy, then the insurer can provide his/her family with a sum assured. This sum assured can be used to meet future and regular expenses. Furthermore, if the policyholder survives the term, then the insurance provider can offer him/her with the maturity benefit. Also, it has become very easy to buy a life insurance plan. A person can buy life insurance online effortlessly.
Who Should Purchase a Life Insurance Policy?
Parents with Young Children
It is very important for parents with young children to have life insurance. In case a parent dies, it can create a huge financial burden and threaten the future of the child. Life insurance can provide financial support to the policyholder’s child. The sum assured received can be used by the child to meet his/her future goals.
While young adults might not require life insurance in the early stage of their life, buying it at a young age can ensure the premium stays low. The premium of a life insurance policy doesn’t change once the policy is purchased. It stays the same the entire tenure. Thus, young adults can purchase a policy at a lower premium and keep it active at the same price when their family gets bigger, and their responsibilities increase. This is an affordable way of buying life insurance.
People with a Home Loan
Purchasing a home requires a huge amount of money. Hence, many borrow a home loan to buy a house. The loan borrower needs to repay the loan in EMIs. In case the loan borrower passes away before repaying the home loan, it can create a huge financial burden on his/her family. However, life insurance can provide a sum assured to the policyholder’s beneficiary, which can be used to repay the home loan.
While who should buy a life insurance policy is an important question, another important question is why buy life insurance. The most important reason to buy a life insurance policy is to provide financial stability to the family. In case the insured person dies untimely, life insurance can offer his/her family a sum assured to ensure their financial security. Furthermore, life insurance can provide maturity benefit.
Policyholders can also purchase add-ons to enhance their cover. Add-ons are additional benefits that a person can purchase by paying an extra premium. Some of the most important add-ons are accidental coverage, return of premium, critical illness cover, etc.