What is Life Insurance?
Life insurance is an easy answer to a difficult question… How will my loved ones cope financially when I die?
Life Insurance is a topic no one really wants to think about, however if you are the breadwinner or if someone depends on you financially, it’s one you cannot avoid. Life insurance is a safety net that can financially provide for your loved ones in the event that you are no longer able to.
Life insurance is a financial product that provides a lump sum of money to your loved ones (the beneficiaries) in the event that you (the policy holder) pass away unexpectedly. Life Insurance offers peace of mind; it will help ensure that your loved ones are taken care of financially and can help with:
- Paying for final expenses e.g. funeral costs
- Paying the bills and day-to-day living expenses
- Paying off outstanding debt, including credit cards and home loans
- Protecting a spouse’s retirement plans
- Paying for your children’s education, weddings and more
There are different types of life insurance policies. Some policies protect, some help you to save and some do both. The type of life insurance policy that is right for you also depends on your life stage.