Why it is important to have life insurance

Publish date 03 December 2015
Why it is important to have life insurance image

Life insurance can be the most important financial instrument you have. At the heart of it is your ability to think long-term and protect and care for your family.

There are several reasons to have life insurance:

1. Covering LOANS and Debts - Definitely the worst thing you can leave after your death are loans and debts that your relatives will have to pay off for perhaps many years to come. Life insurance can be used to pay any such amounts due.

2. For the education of children / grandchildren - in the life of every person children and grandchildren are the most important thing. Your life insurance can cover their education and thus provide them with a good future in the event of your death.

3. Replacement of your income - after the death of a spouse in a family, the income and income of the household usually decrease. Life insurance can prevent this. It guarantees compensation to a living family member and helps maintain a normal standard of living long after.

4. Coverage of expenses - and last but not least, it is good to know that the insurance covers all types of medical expenses and funeral expenses, which usually go out to the relatives of the deceased. No one likes to face death, but sometimes we need to think about it.

When can you get life insurance?

The answer is - at any time. Whenever you have the necessary funds and are ready to take this step, you can take out life insurance. Many people are afraid to think about death, but it is something that can happen to anyone at any time. And that's why it's good to think about your loved ones in such a possible case. But remember that the clock keeps ticking and you have no time to lose.

What types of life insurance are there?

Different companies offer different life insurance plans. Find out what are the benefits and costs you will have with each of them and choose the most suitable for you. The universal plans are for:

whole life;
death in the event of an accident;
universal coating;
limited payment.
For how much to take out life insurance?

Once you decide to take out life insurance, it is best to contact an experienced consultant who will help you choose the most suitable solution for you, which will suit your individual needs and desires. The amount of insurance usually depends on what your goals are. If you do not have a family, it will be enough to cover medical expenses and funeral expenses. And if you have a family - think about their future and financial security, when they will no longer be able to rely on your income.

Who to choose as a beneficiary?

The beneficiaries are the persons who will receive the amount upon occurrence of the insurance event. These do not have to be family members, so the insurance policy allows you to specify who they want to be the recipient who has to pay your expenses and obligations after you leave. You have the opportunity to nominate as a beneficiary a certain person, as well as several people, a trustee, a charity or others.

Can you take out life insurance for more than one person?

Most insurance companies offer joint and group insurance plans, with family insurance being the most common practice. However, each company has different requirements for these options. Take an interest and choose the most suitable for you.

In Bulgaria, life insurance is not a common practice. We usually do this only when required of us, usually with mortgages. That is why we increasingly hear insurers say that we put our car or property before health. Sounds scary. Life insurance shows thought and concern for your relatives at a difficult time for them emotionally and financially. Make sure at least the second worry is gone.