Question

how are your financial goals related to thr decision about whether to purchase life insurance?

how are your financial goals related to thr decision about whether to purchase life insurance?

Homework Answers

Answer #1

No-one knows what the future holds, no matter how much you win. Many people die from sickness or injury prematurely every year, and if you happen to be the sole breadwinner in the family and you pass away, it may have catastrophic effects for your loved ones— their ability to pay household expenses, mortgages, and sustain their living standards.

This is the most critical aspect of life insurance one has to take into account. Even after you're gone, your family depends on you and you sure won't want to let them down. Whether it's to cover lost income, pay for the education of your child or ensure that your spouse gets the much-needed financial protection, life insurance could save the day for your surviving dependents. During a crisis, you don't want to see your family deal with financial obligations. Any unpaid debt— a home loan, vehicle loan, personal loan, or credit card loan — will be taken care of if the correct life insurance policy is bought.

Since it is an instrument that keeps you invested for the long term, it would help you achieve your long-term goals such as buying a home or planning your retirement. It also provides you with diverse investment options that come along with different types of policies. Some policies are tied to certain investment products that pay dividends based on their performance. If you are opting for an investment-linked policy, be sure to read the fine print to be fully aware of the potential risks and returns.

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