The importance of life insurance for your financial planning

The importance of life insurance for your financial planning

One of the main causes of indebtedness is the lack of planning. And planning is not only related to having control of the expenditures present, but also to prevent for unforeseen that can happen in the future

If you evaluate your spending pattern, on a 6-to 12-month horizon, you will surely be able to identify that a relatively constant portion of your budget is directed to what we call extraordinary spending. It is important to include these expenditures in your budget planning if you want to avoid surprises. For these cases, having an emergency reservation can help you.

But, there are times when an emergency reserve may not be enough to cover the expenses you or your family need. In cases of disease diagnosis, total or partial invalidity, for example, you will probably have very high expenditures. For these unforeseen, the best solution is life insurance.

Just like car insurance, protects your car in case of theft or accident, life insurance provides financial protection in case of unforeseen in your life. And this protection does not only benefit the individual who hires the service, but also its beneficiaries.

In practice, when hiring a life insurance policy, you transfer risks inherent to the person to the insurer. That?s why life insurance makes up your financial planning.

Despite its important role in financial planning, it is necessary to pay attention to the hiring of insurance. Look for an insurer with variety in product options and payment deadlines. Choose the option that meets your needs and fits your budget. Seek a professional who offers insurance to identify your needs and advise you on this hiring.