Tuesday, 3 January 2017

Benefits of Life Insurance

Life insurance brings in a lot of benefits to those who have signed up. It is important to weigh the benefits and costs of life insurance as is the case with car insurance in Kenya. 

While there are many local and international insurance companies providing life insurance cover in Kenya, their policies contain some differences here and there and so you may want to compare them. Comparing helps you to determine the most cost effective policy. You would want to check what range of damages they cover in their policies and how much premiums and deductibles they charge. 

In most cases, you can apply for life insurance very easily just as is the case with car insurance Kenya: you just fill in an online application form and submit. The period of processing will vary from one company to another. Before making an application, please check the cost of the policy. Some companies will also have an online insurance calculator that you can use to check the cost of coverage and premiums. 

If you are searching for the benefits you could get from a life insurance, then those benefits range from insuring yourself against damage to property, income and bills. 

Below are some of those benefits explained.  

1. Asset protection: After getting life insurance in Kenya, you stand to have your property and income protected to the interest of you and your family. Your property is protected against loss of income owing to illnesses and as a result of death of the policy holder. You also get an inbuilt wealth creation proposition. 

2. Goal based savings: We all have reasons for which we want to save money. Some people aspire to save for education, couples want to save for a new house, parents want to save for the upkeep of their children and others want to save for future financial safety. Life insurance provides such an opportunity. 

3. Source of income: It is very hard to adjust when a family member dies, and especially the income earner. The death benefits of the life insurance Kenya policy provides the family some money to adjust to income challenges as a result of such changes, some of which are unbearable. 

The family will keep running its obligations when such a situation comes. They will not have to stop education of their children or may be withdraw a member of family from care. The fact that they are getting some income from these benefits means they will not rush for aggressive options such as getting expensive quick loans or highly priced loans. 

The family does not have to stop running projects that insured had planned for before death. In addition to funding the home obligations, the proceeds can be used to fund purchase of a home or capital for a business.

4.Covers for funeral expenses: In many cases, those who sign up for life insurance in Kenya are hospitalized and so many have to incur high costs of treatment. Again, the family may be faced with very huge hospital bills after demise. In fact, in most cases, these obligations will run to several hundred thousands or more than a million shillings. Under such circumstances, the family can reach out to the insurer for help.

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