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

Tips for Insurance Discounts
Home insurance and automobile insurance might be must-haves, but it doesn’t have to cost you an arm and a leg to have the appropriate coverages. There are things you can do to get discounts on your homeowners insurance and automobile insurance. Here are...
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...
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,...
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...
Which Protection Is Best?
Keep Your Information Safe! Makes A Great Christmas Present! Credit card numbers are sacred these days. We’d never give them out to a stranger because credit card fraud and stolen identities are never more than one mistake away. But what if I told you that somebody...
Social Security Benefits & Retirement
Though all Americans look forward to the day when they can kick back in a lawn chair and spend time working in their flower gardens, retirement comes with many burdens. A fixed income or access to a 401(k) may not be enough to supplement the lifestyle many seniors are...
How A Home Warranty Will Save You Money
A Home Warranty Will Save You Money Owning a home can be expensive. Appliances break down, and air conditioners tend to quit working in the middle of the summer. In fact, most home have a major mechanical breakdown twice each year. Usually, these breakdowns occur at...
Modern Millionaires Mindset
Here’s A Modern Millionaire Rhetorical Question:   If you have a spare million dollars in your bank account today… How will you spend it? Pay off all your bills and loans? Buy your dream car? Dream house? Give your family a better life? Travel all...
The Most Common Reasons for Debt
 High debt balances can create significant stress, negatively impact not only your future, but it can also impact your health. It can prevent you from enjoying the quality of life that you otherwise may enjoy without the burden of debt payments. While...
Public Assistance Study
 According to a new public assistance study conducted by the University of Illinois and the University of California-Berkeley, a overwhelming majority of fast food worker's families are enrolled in one or more public assistance programs. These programs...
How To Get Involved with Affiliate Marketing or Direct Sales
How To Get Involved with Affiliate Marketing or Direct Sales Life can busy and complicated. With increased costs in childcare, one parent must often stay at home to watch the kids while the other parent works. Or, as someone begins their adulthood, they may need...
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...
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...
Morning Habits for Success
Are you a morning person? Many people enjoy getting up at the sunrise and having a cup of coffee while they browse the web and others prefer to sleep in as long as possible but the most successful people in the world embrace the mornings and in fact there are certain...
The Best Self Help Gurus
In the world today, it is easy to come across scammers looking to take advantage of people in their weakest moments. The realm of self-help is no different. In fact, it can be much worse. Self-help scammers apply abstract concepts so that unsuspecting people will fork...
Feeling Lost? Free (Or Cheap) Career Assessment Tools
In today's world, more people are struggling to pay/find for housing, medical bills, education, and other aspects of life. As a result, embarking on a new career is becoming a popular option to better themselves and their families. However, when choosing a new career,...
Who Qualifies for VA Home Loans
For many veterans and their families, buying a home can be a difficult experience. Many veterans have little patience for the drawn out process of finding a loan, and others have not always had the best luck with credit. Fortunately, Veterans Affairs (VA) can help....
Teach Safety First
There is no denying the fact that the dangers out there are very real and your child is susceptible to them all. Luckily you can implement so many strategies that help protect your little ones and keep them safe at any age as long as you are willing to...
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,...
A VA Home Loan Can Help You Get Affordable Housing
 Ever since the housing market collapse, lenders have tightened the requirements to qualify for loans. If you don't have the required credit score or enough for a 20 percent down payment, it will be difficult to secure qualification for a conventional...

Subscribe

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 Name and Email for Best Results

Due to the overwhelming response, enter your email for best results. Look for your free ebooks from New Flex Career!

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

The More You Share. The More We Can Help!

Share these posts & pages with friends!