LIFE INSURANCE AND MY FAMILY

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I want to share with you about what is life insurance and how does it work. You see, there are many unexpected things that occur in our lives. We might pass away due to an accident or we might pass away due to an illness, but there is one thing that we are a 100% sure of, that is, we will pass away some day in our lives. You see, insurance is a product designed to provide you a measure of protection, at least financially, should a disaster happen, and life insurance is specifically designed to protect your benefices financially, should you pass away one day? So what exactly is life insurance and how does it work now, before we move on, I just want to give you a quick introduction of myself. My name is doctor Sancha Thulani and also the family leader of Sanja Mentoring Family, which helps financial advisors like yourself to become successful financial planners. Having been in the industry for 16 years, I have a unique view of what works and what doesn't in the financial planning world, and it is my hope that I can pass this experience to the new generation by future financial advisors, so that they don't have to go through the same struggle as I have.
 Life insurance is a contract between an insurer and a policy holder in which the insurer guarantees payment of a death benefit to the named benefices upon the death of the insured. To put it simply, you pay a sum of money called the premium to the insurer and when you pass away your beneficiaries, usually your family members get a lump sum of money called death benefit. Now the next question is: should you buy?


Life insurance: you should buy a life insurance if you have anyone who may depend on you for financial support, for example.

Kids or elderly parent.

However, if there is no one that requires you to support financially, the life insurance is not required. Now let's take a look at a typical example. On life insurance, we have John, a 50-year old, sole bread winner of a family with a wife and two lovely kids. Like most families, John has a property on magic 20000, kept aside in cash and the same amount he owes to a creditor in debt of $20000 now, if, one day when John passed away, his estate would have to be distributed. Firstly, his $20000 cash set aside might be taken away by his creditor. Secondly, because he is the only one working in the family, his property on mortgage might be taken away as well. This leaves his wife and kids with no shelter and no money to survive. His kids might also be in college and will be deprived of the needed funds for education. But wait
 Can all these problems be avoided if, and only if, John had a little life insurance? Now let's take a look at what happens if John did pursue a life insurance policy. If John did purchase a life insurance, his commitment will be to set aside a portion of his income and give it as premium to insurance company.

 Upon John's death insurance Company will provide John's family a lump sum, that is called the death benefit, which will go to his family. Now this lump sum of money can be used to pay off his mortgage loan, his family's expenses, and in most jurisdictions this sum of money is being protected from his creditors. His children now also have the required money to go into college. Now you see why life insurance is important to everyone with a dependent.

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