Life is certainly an uncertain journey. There were very few people that had known that during this ongoing pandemic they would be out of business or suffer a job loss. As such, it is always a wise move to stay prepared and financially secure your family’s future at all times.
And a proper life insurance policy would do just that. So, let us find out the various ways in which you can derive benefits from your insurance policy in your absence.
Best ways to make use of life insurance policy to safeguard your family
First of all, it is important that you claim the insurance money provided you are the beneficiary. You have the option to use the money in two ways. One is to take out the money as lump-sum and the other way is to use the money over a period of years and meet your financial expenses.
Depending on what you need at that moment, you can take out the claim proceeds likewise. Most of the time, beneficiaries find the process alittle cumbersome. So, you can always approach a reliable life insurance agent or professional that can help you in the same.
These are the following ways in which you can benefit from the proceeds of the life insurance money.
- Get the proceeds when you retire- For married couples, there is added advantage because both of you can save together towards the life insurance policy. And if it is the retirement plan that you are aiming for, the proceeds can contribute to the same. If you have more cash at your disposal, use the same for pooling in money for the retirement period.
- Meet expenses for education of your kids-These days meeting educational expenses has become a challenge. So, a few years from now, the scenario may become even tougher. If you have a well- planned life insurance policy in place, in the future you can use the money from the policy for funding the educational expenses of your child’s higher education.
There are many ways in which you can safeguard the future of your family. This is just one of the ways.
An expert life insurance professional will be able to guide you better. And it is always better to seek professional assistance as a matter like life insurance and the proceeds can either prove to be a bane or boon for you. So, consult an agent that deals with life insurance that can guide you better.
- Pay bills for miscellaneous expenses– There is never a dearth of bills. With the help of the claim money, you will be able to pay off your bills. This will help you not to default with your payments.
- Get out of debt trap- If you are in debt and have been in a vicious cycle, this is the right time you can wriggle out if it. With the proceeds that you will claim from the life insurance NZ policy money, pay off your debts.
There are many instances when you might have to pay off debt not just of yourself but also of the person who is no more. Under such circumstances, the sum that you receive from the policy can be of immense help.
If you have been one of the signees for any loan or debt, you will be responsible for closing the debt account. So, find out the legalities associated with the loan account and act accordingly.
- Regular income- The sum you receive will be of maximum benefit when you retire. Instead of using the money all at once, opt for annuity payment over a period of time. This can also serve as a regular flow of income.
So, undermining the importance of a life insurance policy will only make maters worse for you and your family. Get adequate coverage and invest in a policy that will meet your requirements.