Life can be very unpredictable and that means you can never be sure what is in store for you from one day to the next, and that is a scenario that creates an element of financial uncertainty.
Being the family breadwinner means your family is reliant on you for financial support. Without a backup plan in the shape of life insurance cover, your family could be placed in a perilous financial position if you are no longer around to take care of things for them, and that is one of the fundamental reasons why people take out life insurance.
Considering how important it is to have life cover as part of your financial planning it makes solid sense to search out the best life insurance plans. Diligence with your selection process should ensure that you get the right level of protection for your family’s needs at the most attractive rates.
If you haven’t already thought about why you need life insurance here are some compelling reasons to make this a priority as part of your 2020 financial planning.
Pay off your debts
When you have a mortgage and have outstanding balances related to loans and credit cards these amounts would need to be settled in full in case of your sudden demise.
It would not make sound financial sense to rely on any savings you leave to pay these debts as this would be money that your family needs to make their future more financially secure.
The best way to address that problem is to have life insurance cover. The life policy would pay out a lump sum that would allow your bills to be paid and give your loved ones the chance to enjoy greater financial security in your absence by keeping any savings intact.
Settle your taxes
Arranging life insurance cover is a fundamental aspect of tax planning and it allows you to make sure that you have enough money in your estate to settle any taxes that are due when everything is calculated.
If you own a business
If you run a business on your own or with other partners or directors you should seriously consider having life insurance cover. This is a sensible strategy as it means that there will be money available to the business from the policy payout so that your shares can be purchased by surviving partners.
Planning for life’s journey
Most of us will follow a path through our life that features a number of major landmarks such as getting married and having children, as well as buying your own home.
All of those events are financial milestones that need to be planned for and you should always have a backup plan in case things don’t turn out as you wanted them to.
Part of your savings strategy
It is always prudent to have a savings strategy in place that allows you to plan ahead for certain events and eventualities.
It should be remembered that life insurance plans can be very flexible and you can also combine savings with life cover if that is what you want to do rather than just insure your life for a set amount.
These are just a few of the many reasons why it is almost imperative that you consider arranging life insurance coverage if you have a family to take care of or other financial commitments that need to be settled if you are no longer around to take care of those bills yourself.