As much as most people know the importance of insurance and most people are taking insurance covers, there are some policies that are more common than others. This includes, health covers and travel covers among many others. People tend to under estimate the importance of life insurance while it is very important as well. Most students don’t see the importance of taking a life insurance cover while it may benefit them as well. Some of the reasons why students should consider taking a life insurance include:
Can help in clearing your debts
Most people don’t know this but a life insurance can help in paying off your debts when you leave that may be a burden to those around you especially your family. There are some debts that you may have had such as mortgage, credit cards, and loans and also funeral expenses which may be costly and put a large burden to your family.
Provide for your kids
For the case whereby you are a student but you have a family, in case you leave, you are sure that your kids will be well taken care of. The life cover can help them in their education and cover their major expenses in their lives.
Will give you peace of mind
With a life insurance cover, you can relax and have peace of mind since you will know that the financial future of your family is taken care of in case of your demise and hence they can continue with their current lifestyle.
Cover your funeral expenses
Having a life insurance cover as a student you can be sure that your funeral is well taken care of. Funerals are pricey and it may burden your family and friends trying to raise funds for your burial. A life cover will take care of that.
Supplement your retirement
It is never too early to think about retirement. The earlier you start planning the better. Good thing with life insurance is that it accrues the value of tax free money that can be borrowed. This can be used as a supplement of income just in case you need additional money or if other investments fail. You should keep in mind however that these kinds of policies are normally pricier hence you may want to consider other investment options as well.
Protect your business
If you a student and have a business, you can use life insurance to protect your business. There are many ways in which you can use life insurance to protect your business such as insuring an employee, use is as a basis of funding a buy/sell agreement, or as a security for borrowing against cash in a tax free way. There are many others in which you can use a life insurance over to protect your business. It depends with the kind of policy and the kind of company that you are dealing with. Some companies such as insurance HERO will make sure that you get the best life insurance cover that will suit your needs.