Life Insurance Benefits Combining Benefits To Suit Your Needs
Despite the fact that life is very unpredictable, you have the choice of preparing for the inevitable. Life insurance benefits ensure that once you die, your family will be able to access a lump sum payout or pension payments to enable them continue their lives without interruption. The benefits will ensure that they will be financially stable enough to pay for day to day bills, pay for mortgage, the children’s education, pending medical bills and any other debts you may have left unpaid before your demise.
Most life insurance benefits can be paid out even before your demise. If a certified medical practitioner ascertains that you will not live longer than 12 months, you will be able to access 100 percent of your life insurance benefits. If you are married, your premiums can be 5 percent cheaper. You can achieve this by taking out a joint life insurance cover with your spouse.
You will need to renew your life insurance policy when the current term ends. Whenever you renew your policy, the premiums will increase because you will have increased in age. The insurance provider considers you as being more risky as you get older. The insurance provider can also increase the premiums based on the prevailing consumer price index. However, the premiums remain the same as long as your current term has not ended.
When you decide to take out a life insurance cover, there are certain features you can incorporate into your cover to ensure you have a comprehensive policy that covers you wholesomely. A mortgage protection within your life insurance benefits ensures that if you suddenly die or are disabled, your home will not be sold.
An estate protection will ensure that there are funds set aside to enable the proper division of your estate. This removes the risk of other interested parties trying to interfere with the division of your estate. Debt protection ensures that there are funds to pay for all debts, while family protection ensures there are enough funds to enable your family maintain their current standard of living into the foreseeable future.
If you are in business, a partnership protection will enable your partner to buy your share of the business, while a key person protection will compensate your business for your demise. A business loan protection will enable your business to pay off loans in your absence if you are a key person in that business.
There are certain life insurance benefits that can be incorporated into your policy. Your sum insured can be indexed, whereby your sum insured is increased at the same rate as the consumer price index. This is usually done on every anniversary of your policy, and the insurance provider will reflect the changes without requiring any further medical details or information from you. The funeral expenses benefit is paid out to your beneficiaries to help in off laying your funeral expenses. Visit us for more info. Read: Home Loan Eligibility Criteria Relaxed: Your Ticket to Affordable Housing
You can also have a financial planning benefit that provides funds to your beneficiaries to help them hire a certified financial consultant. The consultant should be approved by the insurance company, and will draw up a financial plan for your beneficiaries.