Why death insurance is essential for you and your loved ones

Understandably, we would rather not talk about death. However, discussing your financial planning for when the inevitable happens is very important. Ask yourself this question: what will happen to your loved ones when you are gone?

The death of a loved one is not only emotionally draining, but it can also have huge financial implications. Continuing to maintain the same standard of living, paying off loans, financing daily expenses and your children's future studies are all financial concerns you may prefer to avoid. But now is the time to think about it, before it's too late.

What does death insurance entail and which ones are there?

Death insurance

The principle is simple: during the insured period, your dependents will receive a predetermined amount in the event of your death. You further determine the details:

1. The term of the insurance.
2. The insured amount paid to your beneficiaries.
3. The beneficiaries themselves, which can range from family members to your children or a close friend.

Debt balance insurance

Are you still paying off a loan? Then debt balance insurance is a wise choice. In the event of death, this insurance will pay off all or part of the loan.

It is recommended to opt for a debt balance insurance that covers both partners 100%. This will repay the loan in full if either of them dies. But the other expenses besides the loan should not be overlooked.

Term life insurance with a fixed capital

What happens to these other costs apart from the loan? Paying off the loan is a relief, but living on only one income can be financially challenging for many families, especially in the event of death.

One solution to this is a temporary fixed capital death insurance. With this, you insure a fixed amount that remains unchanged throughout the term. Your loved ones will receive this capital if something happens to you during the term of the contract.

Death insurance protects your loved ones' future

With a death insurance policy, you bring an important contribution to the protection of your loved ones. For example, the insurance will guarantee the following things:

• Maintaining their standard of living.
• The financial support of your children's studies.
• The ability to repay a mortgage loan.
• Covering any inheritance taxes.

Taking out death insurance also contributes to your peace of mind, as it provides your loved ones with financial security.

The 3 main benefits of death insurance

1. Simple: It is easy to take out and relieves financial worries for your loved ones in an instant.
2. Accessible: In most cases, death or life insurance is much more cost-effective than other types of insurance, such as a comprehensive auto insurance.
3. Customisable: You can customise the policy to meet your specific needs, including the amount insured, term and beneficiaries.

In short, death insurance is an essential part of your financial planning. You can turn to SWIS Insurance to make the right choices to secure your loved ones' future. Feel free to contact us for the advice you need!