Insurance is often the safest and most risk-free approach to investment. of family and our income early potential. Individuals who find themselves at the head of a household know the stress and pressure of having others depend upon them for their well-being and income. Death often occurs unexpectedly and without notice. Especially true when accidents and sudden diseases are the source of death. It is important to make sure that you have enough insurance to cover your family’s expenses in the event that you are no longer able to. Have you thought about how your family will survive not just emotionally but financially without you?
Insurance can help preserve your family’s lifestyle and should be incorporated into any comprehensive financial investment plan. Most people avoid the issue of life insurance, thinking about one’s own death is never pleasant but having the peace of mind to know that your family is taken care of is well worth the effort. Life insurance is a low-risk way to invest money over time. Most people decide upon term life insurance because they do not realize there are other investment-based life insurance policies available. Term life insurance only pays out one lump sum after you die.
Financial experts believe that an individual should have a life insurance policy that is at least 10 times their annual income. If you are interested in purchasing insurance there are several online life insurance calculators which offer a fairly accurate life insurance analysis. The cost of insurance is based on the level of risk taken by the company that is giving the insurance. Factors that affect price are age, health, participation in hazardous leisure activities, or addictions. Life insurance can be taken out on just about anyone including the main provider of the family’s income, the homemaker, the stay-at-home parent, anyone with dependents, and anyone who has significant debts or assets.
Speak with your financial advisor about including life insurance as part of your stock portfolio. Your advisor will you calculate exactly how much insurance you need for your particular situation. Life insurance can be taken up either inside or outside superannuation. Insurance within superannuation has the benefit of premiums being tax deductible. This is especially useful for anyone who is self-employed or someone who has a spouse who has a low income.
Purchasing coverage through a superannuation funder is a great way to save on life insurance premiums because it is not a separate insurance policy. Those who are self-employed can claim a tax deduction on their super contributions, regardless of whether the contribution is used to purchase investments or insurance. This tax-saving option is ideal for those who have a young family and are seeking increased security and financial protection as the amount saved through deductions and rebates can be used to increase your level of insurance coverage.
