As unbelievable as this sounds, there are people who have very little regard for life insurance. Scratch that…there are people who have very low regard for insurance in general. There are folks who will only take the mandatory insurance, like car insurance.
Talking about life insurance to people with such a mindset can be an uphill task. Replace hill with mountain. Suffice it to say it is very difficult to get them to even get life insurance a passing thought. You might even be met with derisive laughter for your trouble.
What are the concerns raised?
A few insurance fellows will tell you about people who refused life insurance on the following grounds:
- Their partner will have them killed so that they can benefit from the monies paid out.
- It is a bad omen – One is tempting fate.
- The ones they leave behind will sort themselves out. They have ensured they have the skills required to make it.
Need to know
First off, life insurance is an important factor of personal finance. Every family should take it into consideration when discussing matters to do with family finances. Maybe it was not introduced to you in the right manner, but you have every right to find out from insurance gurus like Juniper Life Insurance or your preferred insurance company.
- If you have dependents, you need life insurance.
Who are your dependents?
- Spouses and ex-spouses
- Life partner
- Children
- Dependent parents
- Dependent siblings
- Business partners
- Employees
You may not have all of them. However, unless no one would be left suffering financially if you were to cross over, then you need life insurance jus like this like this life insurance in NZ.
- Life insurance is not just about how much you are worth.
It is a compensation for the financial issues that accompany the death of a breadwinner. Life insurance assists your loved ones to cover costs that may arise as result of the lost income. Such costs could include:
- Mortgages
- Debts
- School expenses
- Final expenses
- Lost income
It is hard enough dealing with the loss of a loved one. Add financial stress into the mix and you have a stressed-out family.
- Life insurance is a legally binding contract.
Once you sign up with an insurance company, you enter into a legally binding contract with them. The contract is presented to you in the form of a policy document.
- Life insurance should not be taken as an investment.
Life insurance covers risk. Even if it offers such incentives as tax privileges, you should not rely on it as an investment tool.
- Before cancelling an existing life insurance policy, find out what your options are.
If you feel that the policy you have signed up for does not meet your needs, you might decide to simply cancel it. It is allowed, but it is important to find out the consequences and the options you have. A term policy can simply disappear if you quit paying premiums, but a permanent policy may come with a loss if you cancel it. Ask for information before you cancel.
Life insurance is vital, especially for your loved ones, as it covers the risk of loss of income and it is important that you contact insurance providers like Juniper Life Insurance or any other provider to find out more and possibly sign up for a cover.
