Why Get Life Assurance?

Life is filled with the unexpected. You want to make sure that you and your family are on firm financial ground when the storms of life come. Take the situation of a widow who is left to raise a brood of youngsters all by her lonesome. Or a husband of a two-income household who suddenly finds himself with not just the monthly mortgage payments but also huge bills from the hospital.

Financial Protection for the Family

Life assurance pays off at the most unpleasant time in a family’s life – the loss of a loved one. It protects against financial loss that is experienced at the death of someone who brings home the bacon, an income earner.

With the proceeds from the life assurance, your beneficiaries can:

  • Pay off the mortgage and other major debts
  • Cover end of life costs (i.e. hospital bills, funeral and burial expenses, etc.)
  • Cover the day-to-day household needs
  • Pay for a child’s college education

In short, you can be assured that your family is provided for financially even if you’re not around.

Money for You if You Survive Until Maturity Date

But, more than that, life assurance provides you with funds if you do survive the policy’s maturity. These funds may be used for one’s retirement or for the payment of a child’s college tuition fee. You see, life assurance policies accumulate yearly “bonus” earnings, based on the company’s investment performance for that year.

Ready Cash, Loan or Collateral for Loans

The bonus earnings may be left to grow within the policy.  It can be treated somewhat like a liquid asset, with some restrictions. As a policy owner, you can:

  • Withdraw the cash accumulated in the policy. This will, of course, reduce the amount of money you will stand to receive at the date of maturity of the policy.
  • Get a policy loan. You can take out a loan on the cash value that is in the policy and pay out the loan while the policy is in force. The loan will be charged some interest and any unpaid amounts will be deducted from the proceeds you stand to receive at the policy’s maturity.
  • Use the life assurance policy as collateral. You can take out a bank loan and some banks accept a life assurance policy as collateral.

Life assurance prepares you for the future. It ensures that your family has what they need to keep on even as it gives you funds to look forward to that you can use for whatever purpose you wish.

To protect your loved ones for less, fill the form on the right to get your life insurance quote.