If there is something which is predictable in life it is the fact that it is unpredictable. We are not sure about most of the things, but we are sure that we will encounter a lot of unexpected things in this great and mysterious journey called life. And these unexpected things are enough reason that we should always have a certain degree of preparation to face the unexpected.
And what better preparation can we have than life insurance. Although you don’t wish it to be, or want to invite misfortune, accidents or death can come knocking any time. Being unprepared would give headache and stress not only to you, but to your family as well.

Why Buy Life Insurance?

For those who are yet not convinced that life insurance is beneficial, there are two obvious reasons why you need it:

• To protect the family against any financial setbacks caused by the death or accident of the insured, and
• The living benefits it can bring you when needed

Aside from the emotional stress, death and accidents also bring with them financial burdens. Without life insurance, the surviving dependents could undergo a lot of financial stress at the event of the person’s death. It could incur a lot of expenses, and at worst, lose all income.

Just imagine the expenses and financial burdens that a person’s death can bring:

• Funeral expenses
• Debts
• Various taxes
• Mortgage payments
• College education of the kids

However, life insurance isn’t just about accidents and deaths. One does not need to die before he or she could enjoy their insurance. It is not only the beneficiary that has the advantage but the policy holder himself while still alive. Below are examples how you can benefit from your insurance.

• Cash value. Some insurance policies include benefits that can be converted to cash value. This cash value belongs to the policy holder and can benefit him in various ways.
• Loans and Withdrawals. Furthermore, there are insurance policies that the policy owner can withdraw from if he is in need of cash. The amount of loan he made will then be deducted from the policy’s original amount.

In terms of loans, the policy holder can avail of loans offered by the insurance company using the insurance policy as collateral.

• Retirement. There are also insurance policies that can be converted to cash when you retire. That cash can mean extra income during your retirement
• Education. Likewise, cash values can be used in education. Money taken out from the policy of a child’s life insurance can be used to pay for education costs in her college years.

Preparing for the Future

As the saying goes, if you fail to plan you are planning to fail. To counteract the dire possibilities in the event of an accident or death, it is better to prepare for the future. There are many ways how we can prepare:

• Life Insurance. It is perhaps the most convenient and easiest way to prepare for the future. The advantage of having life insurance is the flexibility to meet the full amount of obligations at death. It is payable in full to the beneficiary after the insured’s death.
• Savings. The most common form of preparing for the proverbial rainy days is saving money in the bank. It is not only safe, but also earns some interests every month. However, the downside to savings is that you have access to it anytime and can make unnecessary withdrawals. What more, the investment returns are also low.
• Investments. This includes stocks, bonds, and real estate. Investments can generate a lot of monetary return. On the other hand, the risks are also great. There have been stories which tell us how people turn from riches to rags because of wrong investment strategies. Furthermore, a person might not live long enough to enjoy the fruits of his labour.

Listing the pros and cons of various ways to prepare for the future, we could say that life insurance has an edge. It can provide the needed income when the family needs it. It also gives security to the surviving family when going through an adjustment period. By having life insurance, you can be assured that your family is well taken care of.

Life Insurance and Superannuation

Most of the time, people are still not sold out about the benefits of life insurance. The most common alibi why people don’t purchase insurance policies is it is expensive. For most, it is taking a huge chunk of their monthly income.

The answer for this is life insurance through superannuation. Although some people may argue that the benefits of life insurance in superannuation aren’t that far-reaching, there are still benefits you can get.

For one, you can get a lot of tax advantage when you purchase life insurance through your super. And with lots of competition among life insurance companies in Australia, members of superannuation funds are ensured that they get the best value out of their life insurance.

Life insurance, whether purchased through superannuation or as a stand-alone, can mean security and peace of mind for you and your family. With all the uncertainties the future brings, life insurance can soften any unexpected blow given to you.