Why Do You Need Life Insurance?
Who needs life insurance? You do. You’ve worked hard to provide for your family, but what if you were to die and leave them with no income? How would they continue to live in the manner you have provided and how would they pay for your final expenses? Too many people don’t think of the possibility of something tragic happening to their family and when it does those left behind suffer. It costs a great deal of money to support your family and funeral expenses are surprisingly high. Don’t get caught off guard if the unthinkable happens. Life insurance can help provide for your family and buffer the cost of your final expenses and ongoing household expenses as well. You’re never too young to think about providing life insurance for yourself and your spouse and it is never too late to take out a policy to protect your loved ones and all that you have worked hard for.
There are important questions you need to ask yourself and your insurance agent when you are considering a life insurance policy. Do you want a term life policy or a whole life policy? Knowing which type of policy you need and how much you need can be confusing. Whole life pays out at the time of your death and includes an investment component. Your money is invested in bonds, annuities and other investment options and can be traded in for cash. The amount that you receive at the end of your whole life policy depends on the economy and the rate of return on your investments. It is generally more expensive than term life insurance, but it also helps you to save money that you can cash in later in life. Term life is pretty straightforward. Term life pays out at the time of your death and has no other components. Your premiums are generally based on your age, health habits and the amount of insurance you want. There is much discussion in the insurance world about which is better, whole or term. It all depends on how long you plan on keeping your policy and if you want just life insurance or want to use your policy to save money. It is best to get the advice of an experienced agent to help you make your decision.
How can you know which policy is the best for you? An experienced agent knows the best companies and can find the policy that fits your needs. He will sit down with you and discuss your assets, liabilities, income and income potential. He will also help you to honestly evaluate your final expenses and how much money your family will need in the future. Any outstanding bills and debts are also factors in calculating how much life insurance coverage you need. An experienced agent will also look at all of your options with an unbiased eye and be able to give you sound advice and recommendations. The world of life insurance does not have to be confusing. With the right advisor you can give your family the protection they need and have peace of mind.
