Do I Need Life Insurance?

by

 None of us like to think about death, and if you’re young and healthy, it may seem remote enough to make premium payments feel like a waste. But, if anyone depends on you then you should have life insurance. As distant as the possibility may seem, though, we can’t forget that anything is possible and that getting insurance while we are young and healthy can bring real cost advantages. 

Life insurance assures that money will be available to your dependents if you die. A family that loses a primary breadwinner without appropriate insurance can find itself in serious financial trouble, and in many cases radical adjustments to the family lifestyle are necessary. A well-chosen policy can keep your loved ones in their home and assure a college education for your children, even if you’re not there to provide.

Get a no hassle, no cost quote from life insurance providers!

 

Pay Off the Remaining Bills

Freedom of Debt | Life InsuranceA family that is carrying a mortgage or any other significant debt can be in deep trouble when a breadwinner is lost. Even rent may be difficult to pay, especially if a surviving partner has child care responsibilities. Medical bills can also be a huge problem: there is often a period of hospitalization or nursing care before death, and s prolonged period of health care can come at a very high cost. A life insurance policy can provide enough money to pay off all of the medical bills, and still leave enough money behind to support a family. Funeral expenses also have to be paid: the typical cost for a funeral with a casket and burial runs at around $6,500. Because payments are usually made quickly, the money from it can be used to pay for the casket, a headstone, and other funeral costs.

 

Pay for College with Whole Life Insurance

Education is one of a parent’s primary responsibilities. We all want to give our children the best possible chance at a good life, and a college education is a key part of that. College is expensive and difficult to pay for at the best of times. In a worst case scenario, would you want your children to be disadvantaged for life?

 

Create an Inheritance

A life insurance policy can provide an inheritance for your child or children. Many of us want to leave behind a good inheritance for our children, but do not have enough money to put savings aside, or we do not want to divide up a business or land. Your policy can provide an inheritance; one child can get the land or the business when you die, and your other children can receive their inheritance in an equal amount from your policy.

 

Types of Life Insurance

There are two basic types of life insurance: term and whole life. While some policies may go by other names, they all are one of these two types.

Term Life – provides coverage for a term or a set number of years. You can purchase term life for anywhere between one year and up to 30 years.

The coverage remains the same for the term. There are no bells and whistles with the policy, including any savings program. It is just insurance and nothing else, which makes the policies much cheaper than whole life and gives you much more coverage for the same amount of money.

To get the best benefits out of a term policy, be sure to get a guaranteed renewal, which enables you to renew the policy for another term, even if your health situation deteriorates. Without the guarantee, you may end up unable to get a policy if you have developed serious illness.

Whole Life – coverage comes in several variations, but all of them have two parts, insurance, and a savings plan. The insurance portion is usually level, but it can also vary under some policies. They usually last a lifetime, and if you purchase it while you are young, it is reasonably inexpensive.

The savings portion of your policy is financed by the premiums you pay each month, which makes these policies are more expensive. It will take several years before a sizeable savings amount will be available. There is a guaranteed minimum interest rate on the savings portion. Some whole life policies let you choose your investments, in others the company providing your policy makes the decisions. With some policies, the savings portion can be used to pay the premiums, once it accumulates enough money. This is called a paid-up policy.

Learn more about low cost insurance premiums!

 

How to Buy

The first step to buying life insurance is to determine how much coverage you need. You’ll need to assess your total financial obligations, including your mortgage and other long-term debt. You’ll factor in your family, living expenses, projected educational expense, and give an allowance for medical and funeral expenses. At the end of the process, you’ll have a ballpark idea of how much coverage you need.

Once you know how much you need, you need to assess how much you can afford to spend for premiums. Be realistic: if you end up missing payments, your policy may be useless when you most need it.

Once you know how much you need and how much you can spend, it’s time to go shopping. Talk to an agent, or better several agents. Assess the types of policy described above. Ask your agent to review the value of different polices and how they change over time, and be sure that you understand the explanation. Don’t be afraid to ask for a simple explanation! Review the offerings in detail, and select what’s best for you. You may have to make some compromises, accepting less coverage than you want or paying more than you had originally planned, but if you remain practical and assess your options carefully at every stage, you’ll get what you need. Never let yourself be pressured by an agent looking for a commission, and if you feel like you’re being pressured, consider looking for a different agent.

The best time to buy is when you are young. Coverage is much cheaper at that stage of your life: as you age, it becomes more expensive and may become unavailable if your health is a serious issue.

 

The Bottom Line

If you have loved ones that are depending on you to provide for them, life insurance is not an option — it is essential. There are always competing financial priorities, and many of them will seem far more immediate, but none of us can afford to ignore the long-term. We may think we can’t afford to get it, but the truth is that we can’t afford not to. Understanding the product, assessing our needs carefully, and comparing multiple offerings before making a choice can help us assure that we get the coverage we need at a price we can afford.

Top Rated Insurance Providers. Get Your Quote Today!

 

 

http://www.bankrate.com/finance/insurance/reasons-to-buy-life-insurance-now-1.aspx – bankrate.com

Social Security Disability Benefits
Sometimes in life, events occur that prevent people from working in order to make a living. Accidents occur and illness strikes at the most inopportune moments. The Social Security Administration may be able to help. They provide disability benefits to...
How To Find Good Insurance Companies
 Insurance is a part of life whether you’re looking to protect your life, home, or automobile. All insurance companies are not equal. Working with a good insurance company is just as, if not more, important as having coverage. Here are four things to keep...
Step By Step Guide To Debt Repair & Rebuilding Credit
Step By Step Guide To Debt Repair & Rebuilding Credit A severe debt situation is a huge financial misfortune that can ruin your ideal credit scores. If you are bothered by this excruciating condition, never worry. You are not alone in this regard. During the...
How To Get A Work-From-Home Job and Earn $275 Per Day
How To Get A Work-From-Home Job & Earn $275 Per Day There are many advantages to working from home. There's no expensive and time-consuming commute, for example, and it's also possible to work from home while juggling other responsibilities. However, while many...
Home Improvement Grants
 Is your home desperate for repairs? Are you at your financial limits, broke...flat broke? Have you ever wondered how it would feel to have the government help you be able to afford these critical repairs? Help is possible through new home improvement...
How to Manage Credit Card Payments
Do you have issues paying off credit cards? Sometimes the interest itself can be an overwhelming monthly payment. We have gathered some information below from credit experts that can hopefully help you manage your payments and find a way out from under...
Unexpected Pregnancy Resources
 If the event that you know a low-income family who is experiencing an unexpected pregnancy, you may want to reach out to help. During this time, you can feel overwhelmed and not know what steps to take. But know that you can take on a supportive role in...
How Does Renting to Own Really Work?
 In the years leading up to the financial crisis of 2007-08, the renting to own model — in which tenants/buyers have an option to purchase the house or condo they’re renting from their landlord/seller— was mostly offered by individual homeowners. In the...
Five Great Resources for Working from Home
 There have been thousands of people watching “Good Morning America” who have sent us messages thanking us for helping them make the money while working from home. For anyone who hasn’t yet taken the leap forward but feel as though you might be ready,...
Easy Formula for Grant Applications
When you look forward to apply for a government grant, you will need to do a lot of research and make elaborate preparations. To give a kick start to your grant seeking process, fist you must understand the different types of grants available. You will...
Find The Best Section 8 Homes & Rentals
Find The Best Section 8 Homes & Rentals Are you feeling a little frustrated searching for Section 8 homes and rental property? Below is a list of multiple Section 8 housing resources. These are not in any particular order. These are just eight very good resources...
The World of Federal Grants
Welcome To The Wonderful World Of Federal Grants Federal Grants - If you are planning to go to college or university but know that you would never be able to afford it on your own, or with the help of your family for that matter, one of the first places...
Is Public Housing An Option for You?
The US Department of Housing and Urban Development (HUD) utilizes several programs to ensure housing for lower-income families. One of these programs is Public Housing. This program was designed to provide decent and safe rental homes for lower-income...
The FHA and Home Loans
 The Federal Housing Administration (FHA) insures mortgages on loans provided through FHA-approved lenders. Since its creation in 1934, the FHA has insured tens of millions of homes for families in the United States. These mortgage insurances protect...
Examine Failures and Find Inspiration
How to Examine Failures and Use it as Inspiration Sometimes, when we fail, it can feel like the end of the world. None of us like to be told that we are doing something wrong. None of us like to experience setbacks in our plans. It can make us question our self-worth,...
Solid Advice for Credit Repair
It may be difficult to find information on the best ways to improve your credit. There is a wealth of different tips in this article to help you rebuild your journey to credit repair. Using these tips can save you from stressing and prevent headaches....
How to Save Money on Your Kids Dental Bills
Your family budget might not extend as far as it used to. Still, you want your children to have healthy teeth and inexpensive kids dental bills. Learn how to save money on your kids dental.  Like Clean Teeth? Try the Dollar Brush!   Courtesy of Fox News Health...
Health Insurance Coverage Changes | ACHA
Healthcare reform tends to be tricky and complex as it attempts to find a common ground that is beneficial for all people. Burdened by the political firestorms that surround it, the new healthcare bill approved by the House of Representatives will...
Best and Worst Student Loan Services
Best and Worst Student Loan Services This is the time of year when hundreds of thousands of Americans begin to prepare for their first semester in college. They begin to seek out the items that will sustain them during dorm life. Parents spend money on new sheets, hot...
Social Security Disability Benefit Application Help
 There are several advantages to applying for Social Security Benefits online. There is no need for an appointment and it will definitely save you time. Visitng your local Social Security Office can be very time consuming and frustrating. Read the...

Subscribe

RSS ED News

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Pin It on Pinterest