Considering Life Insurance is Not a Bad Idea
Published by Manny on Tagged Life Insurance
When you think of life insurance, Do you see it as some extra expenditure that there really is no need for? We could always find some other place to put that money, and the truth is, we may not really think of it until we have a family and begin to gather assets. Just like your car or homeowners’s insurance, life insurance is an insurance policy that provides us with extra certainty that if something were to happen we would be covered financially. In the event that we might die, life insurance allows our family the means to take care of our end of life needs, things like burial or cremation and more depending on the coverage.
We are living in the age of credit purchases, therefore we carry a good amount of debt through our working years. Things like car payments and mortgage payments, personal loans, student loans, credit cards, to name a few. Most companies offer some type of life insurance coverage to their employees which could be purchased at reduced group rates. This may be twice your salary, or some small amount depending on your individual situation and the options available to you.
For added coverage, many people choose to purchase life insurance through their personal insurance agent for varying amount of coverage. This would make up for the extra expenses not covered by the employers life insurance such as those outstanding debts mentioned above.
Life insurance premiums are based on what type of policy and most importantly, the age of the person who seeks coverage. What is the difference between a term life insurance and whole life insurance? A term life insurance is just that; you are purchasing a certain amount of life insurance for a specified term, often 20 years. The premiums stay the same and does not build any cash value at all. On the other hand, whole life insurance does build cash value and can be borrowed against, or could be cashed in at different stages throughout the life of the policyholder.
I personally think, in general, life insurance is a good idea, if you don’t want to leave your family high and dry facing bankruptcy because of not being able to make ends meet without you. Sounds a bit drastic, I know, but it happens. There are plenty of companies that specialize only in life insurance, your local insurance agent should be able to clarify your specific needs. Remember, the older you get, the more its going to cost. So if you are considering a term policy, while you are still young now would be a good time to buy it.
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