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Published on December 5th, 2014 | by Pete

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The Key Objectives of a Life Insurance

There are more reasons as to why you need a life insurance than why not get one. Anyone should seriously consider a life insurance policy due to the fact that it can change life for you and your family for a period of time with sound planning. Listed below are the reasons why we all should consider getting one.

Children Education

Do you have children who’ll be in college in the next 10 years? If your answer is yes, then you should start planning on how to leverage life insurance coverage for part of the education needs of your children. Education is important for everyone and you should get your children’s education ready while you still can. Take advantage of this great opportunity to prepare for your children’s college education.

Income Replacement

Your immediate family will lose financial support in the event of your death. This is particularly true if you are the head of the family or the income provider. You’ll not only lose wages when you die but as well as the retirement savings contributions you are supposed to get. This is where life insurance plays an important role. It will serve as an income replacement for your immediate family so they will be able to move on with their lives without thinking how to support the family’s needs now that you had passed away. If you are in New Zealand, get a quote on Pinnacle term life insurance online. You will be able to compare the quote with other providers there and you can also buy your policy online.

Emergency

Life insurance is a great financial solution for emergencies and critical situations. These emergencies include sudden medical expenses, layoffs and unplanned retrenchments.

Debt Payoff and Home Mortgage

Yes you read it right. Lie insurance can also be used to pay off mortgages and it is not only limited to that. It can also be used to pay for credit card and other type of debts. Debts will definitely be a great burden to the family by the time of the income provider’s death. It is a wise decision to plan on repaying off your debt earlier so you won’t leave your family with financial burdens. Also see an article on mortgage insurance on CNN.

Charitable Giving

Even if you don’t have debt obligations or a family who will receive the benefits of your life insurance policy, it is still a wise decision to get one. You can use life insurance to give to charities and help others in need. Early on, identify the charitable organizations that you want to make contributions to. Your next step would then be to identify them as your beneficiaries.

Final Expenses

Immediately right after one’s death, the family of a regular individual without a life insurance policy will be burdened greatly financially especially due to the final expenses. But if you have a life insurance policy, you and you’re family will be well prepared for this financial burden. All the final expenses including the burial and funeral arrangement fees will be taken care of by your life insurance company. If you’re dying with terminal illness, the life insurance company will also take care of your nursing home and medical bills.

Whatever is your main objective for taking a life insurance plan, I am sure that it will help your family have a peace of mind which you’re looking forward for.

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