Life insurance can seem like a superfluous cost, especially when you’re young and healthy, but the future is uncertain and life insurance can provide a cost-effective safety net to give you peace of mind. For those in developing countries, acquiring life insurance can help families accumulate wealth for future generations and boost the overall economy. While we hate to sound morbid, here are a few more reasons why we think life insurance is an investment worth making:
- Protect family and loved ones
Many people living in developing countries are working their way towards the middle class, but unexpected death can quickly deter those plans. Life insurance can provide stability so these families can successfully ascend from poverty.
Life insurance is crucial if you’re the breadwinner, as it will allow your family members to maintain their standard of living instead of struggling in the midst of unexpected circumstances. In the event of your passing, the money you have contributed to your insurance plan could go towards the costs of a nanny or housekeeper so that your remaining relatives aren’t forced to bear an undue burden.
- Provide more financial security
Life insurance can provide beyond the basics. For example, if the policyholder passes away, the funds could be used by the beneficiaries to start a new family business or to fund a college education. Given the unpredictable nature of life, every parent still raising children may want to consider preparing with additional coverage.
- Pay off debts
Life insurance not only can help with day-to-day costs, but it could also cover existing debts and recurring payments you might have, like a mortgage or car loan. It can reduce stress during the mourning process as your family makes burial and funeral arrangements, which easily can amount to thousands of dollars.
- Saving tool
Life insurance and annuity plans can help fund your post-retirement dreams, such as purchasing that dream home or travel in your later years. They can also help you save money on your annual taxes, with various plans offering different tax benefits. But do your homework since different plans may have vastly different implications. For example, a permanent life insurance plan covers you forever, whereas term life insurance expires after a certain period even if you’re still living.
- Smart investment
The financial gains of an investment towards life insurance are easy to configure with simple math. Simply deduct your eventual pay out from your current costs whenever you need to validate your decision to think ahead. While some plans can have considerable monetary costs, it’s important to weigh them against the long-term value to your loved ones.
To assist Meed members in planning for the future, we are partnering with insurance companies to provide coverage to the global Meed community as part of their financial services package. From life insurance to personal accident insurance, we believe insurance is essential for achieving financial security and piece of mind!
The information in this article and the links provided are for general information only and should not be taken as constituting professional advice from the website owner – Meed. Meed is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the article information relates to your unique circumstances. Meed is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this article.