Every day we work to provide for our families. We set our budget and make sure that they get everything they need and want. Although this is a tough balancing act, we make an effort to give our family everything that a proper breadwinner should. Unfortunately, we cannot do it forever, as we are all bound to expire from this Earth. What happens to our family after that? Will they be able to support themselves financially? Are they financially secured, or will they ever be once you are not around?
All these questions see, to be answered by one type of investment: life insurance. Whether you purchase high dollar insurance or cheap insurance, the truth is that it provides an amount of monetary aid for your family. Will it be able to support them? Yes, for a time it will. Financial security though is a whole different thing.
Financial security means being free for all other necessary expenses. The level of financial security a person enjoys depends on how much stable income s/he receives. Thus, an insurance plan is not an assurance of financial security but simply an assurance of monetary aid or additional income. Does it help make your beneficiary more financially secure? Yes, but this does usually make them fully financially secure.
Remember, cheap insurance gifts your beneficiary with a smaller amount of monetary aid and therefore can only go so far. Whether they use this to start a business or act as a supplement for the income that was lost with your passing, the truth is that amount is there and that they shall enjoy it for the period that the insurance company will provide.
A larger insurance plan, however, will provide them with a larger amount. Will it allow them to be financially stable? Yes, but only for a time. Of course how this monetary aid shall be used it is always the decision of your beneficiary.
No comments:
Post a Comment