The importance of life insurance cover should not be underestimated. It is imperative to remember that life insurance is not for your benefit, it is for the benefit of your dependents such as your children and your spouse.
After your passing, your beneficiaries are the ones who receive the lump sum. Before deciding to cancel your life insurance, or opting not to take out cover at all, there are some critical points you should consider. Read this article to know more about whole life insurance for adults.
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How important is life insurance?
As we all know, nothing in our lives is guaranteed and in the event, you pass away, your loved ones will be severely impacted, not only from an emotional perspective but from a financial viewpoint as well.
If you are struggling to afford your current life insurance premiums, remember that there are quite several alternatives that are well worth considering, instead of canceling your policy altogether:
Decrease the value of your life cover policy
If your current life insurance premiums are high and you can no longer afford to pay them, you could perhaps decrease the value of your cover, so that at least your dependants will have some funds available instead of none at all.
Most life insurance providers will be able to assist you in lowering your monthly insurance premiums by adjusting the value of your life insurance cover, which is certainly an option worth considering.
Change from permanent to term life cover
If you currently have a permanent life insurance policy, you will be paying higher premiums than if you were to have a term policy. It is advisable to speak to your insurance consultant to enquire about the possibilities of changing your cover.
Term life cover is usually cheaper than the permanent cover, which may be a big enough difference in terms of affordability.