Life insurance is not expendable and is important even for those who do not have dependents or have a policy offered by the employer. But when is life insurance worth it at all?
If you are one of those who neglects life insurance because you believe that you will not be the one to benefit from it, or you think that the life insurance offered by your employer is sufficient, know that your ideas can be quite wrong.
Life insurance offers several benefits even for those who do not have dependents, such as the spouse, partner or children and are an important patrimonial protection for those who do not want to suffer financial suffocation.
Here are four reasons why you should take out life insurance:
1. Life insurance is not just for death
Life insurance does not only offer coverage for accidental or natural death or events related to the insured’s death, such as funeral care. They can offer a number of important coverages that the insured person can enjoy in life.
A good example is a coverage for temporary or permanent disability, whether in the event of accidents or illness.
There is also coverage of medical and hospital expenses in certain situations, indemnities in case of discovery of serious diseases and anticipation of death compensation in case of terminal illness.
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2. Even those who do not have dependents can have life insurance
Even people who are not financially responsible for anyone may need life insurance. Death coverage, in these cases, may not be as relevant, but temporary or permanent disability coverage is very important.
After all, these people are dependent on themselves, and may not have anyone else to count on financially.
The financial impact of losing the ability to work and earn income can be devastating, especially in the case of self-employed workers, for whom a one-month break is enough to cause a big dent in the budget.
As a couple, Is Life insurance worth it?
According to a study done by coverme.com as a couple, you should consider life insurance and health and dental insurance to protect your budget from rising health-care costs that are not covered by your employer. Look at the screenshot below:
3. Your company’s life insurance may not be enough
Many employers offer, as a benefit, life insurance to their employees. If you are an employee, is a good strategy to accept it, but the coverage is often very low. It may also not suitable for the financial situation of policyholders.
One has to consider taking a life insurance policy considering the family income and the standard of living.
It is okay to have more than one life insurance. The one of the company and that of the individual. So, consider the real financial needs of your family when thinking about coverages.
4. Life insurance does not go into inventory.
Life insurance does not go into the inventory in the event of the insured’s death. This avoids a lot of bureaucracy at this difficult time for the family. Thus, the indemnity amounts go directly to the beneficiaries, immediately guaranteeing their expenses.
In addition, life insurance beneficiaries need not be the insured’s heirs, and it is possible to designate persons who will not be entitled to the insured’s inheritance without the existence of a will.
For example, if you have children, they are your required heirs. But if you want, you can designate a nephew with one of the beneficiaries of the insurance, even if he has no right to inheritance.
With that said and done, there is the need to make this note about the refusal of life insurance claims:
Reasons Why They Refused Your Life Insurance Claims
Misrepresentations On Applications
Omitting or lying about information regarding medical history, income or other items on an application is called a material misrepresentation. This can seriously affect the insurance claim to some reasonable extent.
Mortgage Payment defaults
This usually happens to people who for one reason or the other choose to pair their life insurance policy to their Bank mortgage. Banks generally have more reasons to refuse a claim than a personal policy, making it advisable to buy a personal life insurance policy that is separate from your mortgage.
Reasons you were turned down for life insurance
Below is the analysis of the cost of life insurance policy by men and women of the same age group with same income levels:
From the table above, you can see that Men between the ages of 45years and 65years pay more for life insurance coverage than their female counterparts.
There are some instances why your application is declined include the following:
- Specific health condition
- Hazardous occupation
- Hazardous extra-curricular activity
- income limitations