Life insurance is a crucial form of security, especially for those with many dependants. Many neglect to insure themselves adequately because of the irony of the product. You actually pay in advance for a service which you hope you would never have to use. From another angle, life insurance is perhaps one of the most useful financial products to give peace of mind and protection to consumers form unpleasant events. Sound insurance planning rests on a basic understanding of your exposure to risk and how insurance can protect you against those risks.
Death is a cerainty in life, but many are caught unaware when their family's breadwinner passes away prematurely. Financial disaster is a certainty not only in this instance but also in cases of disability, long periods of illness and accidents. You can minimise the likelihood of these events by living a healthy lifestyle and not taking up dangerous sports. But this only eliminates certain risks while others are totally unavoidable.
Insurance serves to minimise the negative effects of these events. From your perspective, you are transferring the risk of loss to the insurance company. In fact, the positive benefits of insurance can be extended to cover any losses arising form damage or loss of property or even indemnify you against personal or professional negligence. Financial advisers generally classify insurance concerning the individual into two categories : Life insurance which deals with your mortality and personal/general insurance that covers your health, property and others.
Death is a cerainty in life, but many are caught unaware when their family's breadwinner passes away prematurely. Financial disaster is a certainty not only in this instance but also in cases of disability, long periods of illness and accidents. You can minimise the likelihood of these events by living a healthy lifestyle and not taking up dangerous sports. But this only eliminates certain risks while others are totally unavoidable.
Insurance serves to minimise the negative effects of these events. From your perspective, you are transferring the risk of loss to the insurance company. In fact, the positive benefits of insurance can be extended to cover any losses arising form damage or loss of property or even indemnify you against personal or professional negligence. Financial advisers generally classify insurance concerning the individual into two categories : Life insurance which deals with your mortality and personal/general insurance that covers your health, property and others.
