Using life insurance as social protection against premature death – Rose Miller | New
The sudden death of the primary breadwinner can often throw a family into chaos, especially if there was no financial plan in place to support the family’s expenses. That’s why Rose Miller, Team Leader of the JN BeWi$e Financial Empowerment Program, urges people to purchase life insurance to protect against these untimely events and financial shocks.
The JN Foundation Grants Manager said life insurance is a good tool to have in your financial toolbox because one of its main benefits is financial security, helping to secure a family’s future. family when the primary breadwinner is gone.
“When considering insurance, the ideal is for each member of the family to have a certain amount of coverage; however, much more emphasis and a higher level of coverage should be given to breadwinners. Many families have life-changing experiences when the primary provider dies. Dreams are shattered. There is huge uncertainty and a sense of hopelessness if no financial provision is made for the family,” she said.
Miller offered this advice while recently facilitating the Council for Voluntary Social Services (CVSS) Virtual Financial Literacy Workshop.
“At the very least, every family should have a plan in place to meet the final expenses.”
One plan she has strongly recommended is a Family Compensation Plan, which she says covers final expenses for up to six family members. Individuals pay a one-time premium to maintain the policy.
She added that insurance can also be used to create wealth and stressed the importance of people accessing insurance when they are young because not only are the premiums cheaper, but they will benefit a longer time horizon for the investment to grow.
The BeWi$ea financial empowerment program team leader also stressed that insurance should be considered an important part of financial planning because of its ability to create, preserve and transfer wealth.
“Life insurance gives you the opportunity to leave a legacy for your family. It acts as a safety net against events such as illness or sudden death, leading to loss of income,” she explained.
She said the right plan also allows people to invest regularly, grow their wealth through professionally managed funds while gaining life insurance coverage in the unfortunate event that people die prematurely.
“It should also be noted that insurance products are not taxed. Insurance is that tool that will help you recover financially from various unforeseen situations and ensure that all your savings or investments are not used to get you back on your feet. You can pay premiums gradually; therefore, you are prepared for these eventualities. Yes, you may be able to cover these costs out of pocket or obtain a loan. However, if you have insurance, you would be prepared and therefore able to access funds to offset the costs, preserving your money,” she explained.