Life Insurance a key element of Financial Planning

Thinking of what would happen if you were to suddenly pass away is not the most comfortable of thoughts but sadly it is something that all of us need to address, especially if you have people that depend on you financially. This is why arranging life insurance is so important as it gives you peace of mind that your dependents will be looked after financially if the worst were to happen.

I know that term life insurance no exam can sometimes seem like an unnecessary expense but in the long run it could actually save you money. This is because in the event of a tragedy your life insurance policy would replace the income that you would have provided to your dependents. Your dependents could be anyone of your family members that rely on you in some way such as your spouse, children, parent or grandparent.

Losing someone you love is hard enough without having to worry about mounting bills and expenses. Funeral expenses, unsettled medical bills, mortgages, business commitments and meeting the college expenses of children are just a few of the financial obligations that your loved ones will be faced with after you are gone so to ease the stress and worries of this situation you should start financially planning to make life that little bit easier.

Checking your life insurance rates and quotes should be high on your list when it comes to financial planning. There are a number of factors that you need to consider when doing this which includes; what sort of cover do you need? How much cover should you arrange? Do you need basic life assurance or more extensive critical illness cover, and what about tax? All of these factors are answered in the type of life insurance that you take out, some of the most popular types of insurance include;

* No medical – this generally entices a wide audience as there is no physical exam involved
* Term life insurance – this is the most popular form. It is designed to be taken out for a specific amount of time such as 5, 10 or 20 years etc.
* Universal – gives you guaranteed coverage of longer periods and equity build up on tax deferred basis.

Financial planning allows you to make crucial decisions about what will happen to your finances and your estate and remember good financial planning can make your money work harder for you. The process involves gathering all of your financial information and using it to set goals and examining your current financial status in order to come up with a strategy of how you can meet these goals and your future plans.

It is a good idea to start as soon as you can, make sure you don’t delay your financial planning. Start saving or investing small amounts into life insurance early on. By doing this you will be better prepared to meet life changes and you will be better equipped to handle emergencies.

You are never to young or old to take out a form of life insurance to secure your loved ones financially so my advice to you is do it before it’s too late; take a look at the difference policies that are available to you and opt for the one that is most suited to your needs.