Our needs for Life Insurance change with age and responsibilities. The insurance policy that we try to buy should totally depend on the standard of living that we desire for our dependants. The different assets and liabilities and different sources of income are also required to be taken in consideration, when we decide for a life insurance. Many social benefits are available, that may not be able to provide us with the desired standard of living and other beneficiary conditions, but there still remains a gap in needs of people and amount that is available for meeting it. This gap is bridged by the Life Insurance policy, with the amount of which, you maybe able to fulfill all your needs.
The amount that is needed for our insurance can be calculated in a number of ways, after making an analysis of the different financial needs. The amount that is received from the policy of Life Insurance can be utilized for a number of purposes, some of which have been stated below.
— It may be used in order to meet educational needs of children, in order to pay off a mortgage amount, or even to make arrangement for funds that are used for retirement purposes.
— It may be used as a source of income to meet monthly expenses till the children grow up to leave school.
— It maybe used as a source of income for the other spouse.
— It can be used in order to meet the last debts of an individual that may include medical bills as well as funeral expenses.
— It maybe used in order to meet the taxes that are related to estate, or expenses that are related to the settling of issues related to estate.