LIFESTYLE

What you may not know about life insurance

Life insurance may seem like a straightforward financial product that compensates the premium holder in case of death or injuries.

Unknown to many life covers come with other benefits.

These include: Changing policy terms many people who have life insurance have never changed or even thought of changing their policies because they are unaware of how flexible policies can be.Most people tend to buy life insurance policies early in their adulthood, most likely between their early 20s or 30s. As one age, financial needs and priorities change.

For example, in your 60s, you are most likely approaching retirement, your children are all grown up and may even have families of their own.

As these life experiences transform, financial goals and needs change. Insurance companies are flexible enough to consider these changes, and in turn, can revise the terms and conditions of your policy.

Utilise your savings many people do not know that money from life insurance can be used for other purposes aside from covering life.

There are lots of other uses the money could be utilized for including paying for outstanding debts, unpaid mortgages and educational expenses.

Using policy money while aliveSome policies are structured such that it acts as an investment plan where you save funds which earn interest over a period of time and gets paid out in a lump sum.

Depending on the insurance company, you could use this as a retirement benefit. These payouts can also be suited to pay out education expenses or can even be used to cushion a financial crisis.Get a lonesome life insurance policies allow holders to access up to 85 percent of the premiums accumulated as a loan.

While you may not necessarily need to get that loan, it is comforting to know that you have the option to do so in case of an emergency. This gives you more options and more financial freedom.

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