How
important is life insurance including child plans?
Child life insurance is a
form of permanent life insurance that insures the life of a minor. It is
usually purchased to protect a family against the sudden and unexpected death
or disability of the breadwinner. Child life insurance policies typically offer
the owner the option to purchase, or in some cases obtain additional guaranteed
insurance when the child reaches maturity.
As we all know, nothing in
our lives is guaranteed and in the event you pass away, your loved ones will be
severely impacted both emotionally and financially. It is therefore important
that you make sure that the financial needs of your loved ones are provided for
and to prevent that loans, such as your bond or any other debts, will not
become their responsibility.
If you are struggling to
afford your current life insurance premiums, remember that there are quite a
number of alternatives that are well worth considering, instead of cancelling
your policy altogether. They are as
follows-
Decrease
the value of your life cover policy
If your current life
insurance premiums are high and you can no longer afford to pay them, you could
perhaps decrease the value of your cover, so that at least your dependants will
have some funds available instead of none at all. Most life insurance providers
will be able to assist you in lowering your monthly insurance premiums by
adjusting the value of your life insurance cover, which is certainly an option
worth considering.
Change
from permanent to term life cover
If you currently have a
permanent life insurance policy, you will be paying higher premiums than if you
were to have a term policy. It is advisable to speak to your insurance
consultant to enquire about the possibilities of changing your cover. Term life
cover is usually cheaper than permanent cover, which may have a big difference
in terms of affordability. Should your financial situation improve over time,
which is always a possibility, you can change back to permanent life cover.
Shop
around for a cheaper life insurance policy
No matter which type of
policy you currently have, such as a permanent life
insurance policy or a term policy, it is always possible to consider other
alternatives. You could go online and do some research into different insurance
companies, and compare the cover packages they offer as well as their monthly
premiums.
Get
Unit Linked Insurance Plan for two-fold benefits-
A Unit Linked Insurance Plan
(ULIP) is a product offered by insurance companies that unlike a pure insurance
policy gives investors the benefits of both insurance and investment under a
single integrated plan.
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