Life insurance is a pillar of personal finance, and should be considered for every household. It can be complicated and feel confusing, but this purchase is the key to caring for your loved ones if anything happens to you. So if you’re on the fence or simply want more information, here are six things you need to know about life insurance.
If You’re Supporting Anyone Financially, You Need it
Just over 83% of American citizens 65 and older say they have grandchildren. If you’re a parent or grandparent who is financially responsible for a spouse or children, you need to consider your options and invest in a life insurance plan.
It Doesn’t Apply a Monetary Value to Your Life
It helps compensate for financial consequences that accompany loss of life, but most importantly, in the aftermath of an unexpected death, life insurance can lessen financial burdens at a time when surviving family members are dealing with the loss of a loved one.
It’s Not an Investment
This kind of insurance is a risk management tool, not an investment. Policies can be purchased at almost any benefit increment, from $10,000 to benefits that pay in the millions. However, that still doesn’t make it an investment. It’s a tool to aid your loved ones after you’re gone.
It Can Be as Expensive as You Make it
Life insurance companies can offer plans with all the bells and whistles, or ordinary policies. For example, a healthy, non-smoking male over 30 might pay less than $500 annually for a 20-year term policy with a million dollar death benefit. That same individual might be required to pay 10 or even 20 times as much for a variable or whole life insurance policy with a matching death benefit.
Begin Planning While Your Young
Contrary to popular belief there is no pre-determined age requirement for you to purchase a life insurance plan. There are major advantages to taking out a policy when you are young, such as having a more cost-effective plan by purchasing early on in your life and also having to pay substantially less in premiums as health problems begin to develop later on in your life.
You Should Contact a Real Person
There are countless online tools to aid in your search, but the best tool you have at your disposal is the help of a real insurance agent. They can navigate the ins and outs of the industry, as well as help you understand what kind of policy will be best for you.
On average, 57% of Americans report being happier on Saturdays and 55% report being happier on Sundays than any other day of the week, but there’s no statistic that can replace the security that life insurance can offer you and your loved ones.
