How Getting Insured Will Help With Your Financial Needs

Generally speaking, insuring your property (house, car, jewelry, and other valuables), insurance your life and your kids/spouse life, buying health insurance, insuring your pets, and insuring your business is a way to get financial coverage in case something bad happens. However, getting insured also helps with your financial needs.

Benefits of Whole Life Insurance Policy

What kind of insurance policy you should buy depends on your priority. If you are a family man or family woman, buying a whole life insurance policy with your spouse and kids as the beneficiaries will be the best option because even when you die your surviving family members will not face hardship with the finances. If you are a parent, you should also buy an insurance policy for your kid so that you can fund your kid's education, pay for medical bills, etc. term life insurance can also be good because you can get the money with the policy manures and you can use the money for to help run the family.

A whole life insurance policy is a policy that will benefit the beneficiary of the insured person. Let's say you bought the whole life insurance policy, you regularly pay premiums, and then one day you die. Upon your death, your beneficiary will receive the benefits. When people buy a whole life insurance policy, their beneficiary is always their kid or spouse. This policy will help your surviving family members with the finances. If you have a family (kids and spouse), you should definitely buy this insurance policy. The financial coverage your family receives after your death will help fund your child's education, or help with the finances for your spouse.

Insuring Your Kids

If you are a parent and if you have money, you can buy a couple of insurance policies for your child, you can buy education insurance that will pay for your kids' education, health insurance that will help you cover the medical bills for your kid, etc. You can also insure yourself and keep your kid as a beneficiary so that he can benefit if anything bad happens to you. Some insurance companies sell family health insurance policies that will jointly insure all of your family members. If this policy is available to you, you should always try to buy family health insurance instead of buying health insurance individually.

Term Life Insurance Policy

If you are placed in high rank in a government agency or international agency, you will receive a lot of retirement benefits. Therefore, for the people who are working for the government in high rank, or working on the international agency where they receive a salary in USD and receive really nice retirement benefits, there is no need to save for retirement. However, if you work in a small firm and your company does not offer any retirement benefits or even if it offers retirement benefits but does not offer good benefits, you might want to consider saving for your retirement. Buying a term life insurance policy can be a good strategy for saving for retirement because when you buy term life, you will receive the insured amount and the bonus upon maturity.

Saving Money in Banks Vs. Buying Insurance Policy

Insurance companies work almost similar to banks. Banks collect money from the depositors and give them some interest on their deposits. The banks then lend the money collected from depositors to the burrower for a higher interest. The difference between the interest they give to the depositor and the interest they charge to the burrower is their profits, and there is really huge gap between these two different interest rates.

Insurance companies, on the other hand, collect money from the insurance buyers in the name of premiums, make these insurance buyers pay the premiums for many years, and in the meantime invest the money in big projects. Insurance companies are not giving free money to the insurance buyers, in fact, they are collecting money from insurance buyers and investing in profit-generating projects. Insurance companies are also investment companies. They are not established as a non-profit organization; in fact, they are here for making profits.

In my home country, some banks are working alongside insurance companies. These banks are helping you to secure an insurance policy without you having to pay the premiums (the bank will pay on your behalf, without charging extra money). This is one of the tactics to lure customers to have accounts in the bank.

First published on Trendri, in author's name