Benefits of Life Insurance
What are the benefits of life insurance?
The benefits of life insurance are vast, and you need only look at the potential financial crisis that would face most families if one of their earners were to lose their life tomorrow. Life insurance can benefit nearly everyone, but it is the average family who will see the immediate benefits most clearly. With most families now having one main earner, and a second part time earner who also carries out childcare, both adult family members are as important as each other. If either one were to die tomorrow, the benefits of life insurance would be immediately evident. The loss of either the main family income, or the partial family income and the child care would be financially fatal for many families, who would then be unable to afford to pay mortgages, losing their homes in the process.
With a life insurance policy, the surviving adult would at least be left with the finances to pay off the mortgage, and to help pay for child care, or the household bills until the family found a way back onto their feet again. At a time of immense grief, the last thing anyone wants to be worrying about is money, and this is another of the biggest benefits of life insurance.
Life insurance provides customers, and their families with total peace of mind, that if the worst does happen, financially at least the family will be looked after and this can lift a big load of people’s shoulders.
Term life insurance
Life insurance is sold in two main different forms. Term life insurance is the most popular of these two forms and the benefits of term life insurance are also clear. Term life insurance protects a customer for a certain term, usually the period of their biggest financial responsibility, or the period when they have children at home and a mortgage to pay for. Term life insurance then runs out and stops covering a customer when they have paid off their mortgage and the children have left home and become financially independent.
Whole life insurance
Whole life insurance provides customers with life insurance for their whole life, and is a more expensive form of life insurance. One of the biggest benefits of whole life insurance is the fact a customer can borrow money against their final payout later in life when they don’t need to leave so much behind.