Why we need Life Insurance & Medical Card

Always comes into our mind...Do I really need a life insurance or medical card? Is that so important for me? It's okay, my company covers for me, and also medical card, then what for I need an additional one?

All this is a common question that use to rings in our head. I, personally don't blame if you too have this same questions in your mind. Who I'm gonna blame then. On my perception, my own perception, its the Insurance Agent's fault. Why I need to blame them instead? Because, few of them never educate their clients on the importance of Life Insurance...they never give proper advise to their clients...the plan they proposed to clients doesn't meet the clients' needs and purpose....no proper service after sales...they just tend to forget about their existing clients, no proper service and move to another client just to make more money and income. And due to these few Agents, clients' feel insecure, never taken care of, resulted to never believe in Insurance. Certainly, its not Insurance Company's fault, but the Agents itself.

But, there is successful Insurance Agents that fulfill the client's needs, deliver the proper message and service whenever the clients need it and that is why they are successful. They take care of their clients very well. Take care here means, the Agents is always reachable whenever been contacted by the clients.

Now, back to our previous questions above. Before you answer that questions, please answer yourself to this question. Do I really need a car insurance? I believe, everybody will say YES...the reason is to protect us against a loss or accident which may result in serious damage to our car or injury to another person. When we purchase a car insurance, we are in fact protecting our investment, which, at today's prices, is probably the second most valuable asset after our home.

And, how about OUR LIFE...YOUR VERY OWN LIFE...who gonna protect yourself with enough protection rather than you yourself? Who gonna pay for our medical bill when we are in need? Who gonna take care our family when we are no more around?

And that's the reason I say, we really really need Life Insurance and Medical Card. Just to make sure, we don't give trouble to our family members or others when we are hospitalised or after our death.

Let's say, we have Life Insurance and Medical Card, do we need to worried too much on the cost when we are hospitalised, whereby at the same time, mentally and physically we are weak too due to our sickness or injury? Do we need to worried much of our family if we no longer live in this world? I believe, the answer will be 'NO', because your Life Insurance can reduce the burden in term of financial part. Thats the main reason.

Anyway, don’t blindly accept that you need to buy a policy. Instead, consider these 10 reasons why we need life insurance. 

1. To replace lost income for your family - The most obvious reason why we need life insurance is to provide money to replace our income if we die so that our families can maintain their standard of living. Even in two-income families, the loss of one income can be overwhelming without adequate life insurance.
2. To cover burial and funeral expenses - Even if you don’t have family to provide for, you still need life insurance to pay for your burial and funeral so that you don’t financially burden adult children, siblings, or others with those costs.
3. To pay medical expenses associated with your death - Unfortunately, many deaths are prolonged and a mountain of medical bills can accumulate. 
4. To pay off a mortgage or other debts - Medical bills aren’t the only debt you need to worry about. A life insurance death benefit can allow your surviving family to eliminate monthly house payments, car payments, credit card bills, or other debt obligations.
5. To provide money for settling your estate - If there is an estate to be settled, death benefits are paid immediately upon death, so money will be available to pay costs related to the estate (e.g., taxes) while it’s being settled.
6. To leave an inheritance - A life insurance policy is a great way to leave money behind for your family or for a charitable cause.  Unlike capital gains, death benefits are not usually taxable.
7. To provide for future needs of children - A life insurance policy can supply money for children to go to college. Or, in the case of special needs children, it can provide for ongoing care and living expenses.
8. To provide a source for emergency cash - Many insurance policies allow for cash accumulation, from which you can borrow. Although this borrowing will reduce your death benefit, you may want to have the option if a personal financial crisis arises.
9. To maximize your pension - When you retire you will likely be given an option to receive a higher pension in exchange for allowing the pension to stop when you die. With a life insurance plan, you can eliminate the need for an after-death pension, freeing you to select the higher-pension option.
10. To allow for business continuity - If you own or co-own a business, then life insurance that benefits the company is a way to protect the company’s future in case you die. The same issues that apply to families apply to businesses—if a vital income creator dies, there needs to be money to make up for the loss.   

As there are many reasons why we need life insurance, buying life insurance is a purchase no one should put off. But don’t rush it, either. Buying life insurance off a website or by going directly to a major carrier is a fast way to buy insurance, but it’s not the wisest.

Be smart with your money. Consult an independent Life Insurance Agent who understands all the reasons why we need life insurance and has the market experience to find the best deal to meet your specific needs.

kumaran nadaraja