Table of contents:
- Various life insurance benefits for families
- Part of a good financial plan
- Additional savings
- Protection in the middle of the unwanted
- Preparing for retirement
- Maintain mental health
- Choosing term life insurance based on benefits
Having life insurance has many benefits for the family. All of the benefits of this type of insurance are able to guarantee the safety of the family's future. Therefore, let's find out five reasons for the importance of life insurance for your beloved family.
Various life insurance benefits for families
Registering as an insurance policy holder is one of the best ways to protect your family. This type of insurance helps families face risks in life. That way, family members can get through any critical times that might occur.
Part of a good financial plan
There is nothing soothing and reassuring other than knowing that the family's continuity is still financially protected even though the policy owner is gone.
Broadly speaking, life insurance is a type of insurance that will pay a certain amount of money to the recipient or dependents when the policy owner is gone. These benefits make life insurance an essential part of a good financial plan.
Additional savings
Quoting from Life Happens, a number of families experience financial difficulties when policyholders, who act as the main breadwinners, die. Financial difficulties experienced include:
- Difficulty paying for living expenses
- Do not have the cost of children's education
- Health costs
With this type of insurance, beneficiaries can have additional savings when the policy owner has passed away.
This additional savings can be used for important family needs. Examples start from taking care of a policy holder's funeral, paying for living expenses while preparing a plan to earn a living, being a source of costs for health needs to planning for children's education.
Protection in the middle of the unwanted
Each type of life insurance offers different benefits. In addition to death protection, other benefits from this type of insurance can also provide protection when policyholders experience a disaster that results in disability.
So, when the policy holder experiences a work accident that results in a disability, the policy owner will receive the promised benefits.
The benefits received can also be used to plan ways of earning a living for the future. Not only that, this benefit can be used to reduce the financial burden on spouses or other family members who will care for policyholders who have a disability due to an accident.
Preparing for retirement
Life insurance generally can be divided into two types, namely life insurance for life and term life insurance.
For term life insurance, policyholders have the opportunity to receive back the insurance premiums that have been paid during the protection period. Please note that benefits like this will depend on the terms and conditions that apply.
With the return of premiums that have been paid, you can use the money received for old age. This money can help you and your partner enjoy retirement time in the city of dreams or be re-allocated to children if they are not yet in their productive age.
Maintain mental health
No less important than previous uses, the benefits of life insurance also concern life health. Based on Mind, many people tend to buy insurance for financial protection and peace of mind.
A mind that is calm and free from anxiety makes one less worried when planning for the future. The reason is because financial protection from life insurance can be a solution for unwanted things that may happen in the future.
A calm mind also minimizes the risk of stress. By managing stress, you help protect your mental health.
Choosing term life insurance based on benefits
Broadly speaking, life insurance is able to support the financial needs of the families who are left behind if the policy owner dies. When choosing insurance, prospective policyholders should be careful in making choices, especially the term life insurance benefits that will be received.
Choose insurance that provides benefits, such as:
- Refunds of premiums paid after the term life insurance agreement is completed
- Sum insured when the policy owner dies or has a disability
- General benefits due to accidents
- Special benefits due to accidents caused by natural disasters, accidents in public transportation, and fires
- Benefits of the road for drivers or passengers of four-wheeled vehicles
- The benefits of the holiday if you have an accident in the middle of the holiday
- Additional accident benefits for the heirs
Not only that, don't forget to choose a term life insurance period that suits your needs. Make sure the premium paid remains the same even though you get older during the payment period.
In short, life insurance has many uses for families. Having this type of insurance can protect the family at critical times. However, don't just choose a life insurance product. Prospective policyholders must be careful in choosing insurance. Don't forget to understand the contents of the insurance policy carefully.
