Do You Need Life Insurance?

So you’re not a member of Discovery’s Deadliest Catch crew or you don’t drive large trucks on icy roads for a living, but does this mean that you don’t have to get life insurance? No it doesn’t.  Individuals who have high risks jobs aren’t the only ones who get life insurance. Life insurance is a way of protecting your loved ones, your spouse, children and even your business after you die. We know you don’t like to think about death, who does, but as adults we must be responsible not only for ourselves, but for the people in our care, the people whom we love.

In case you die what will happen to your dependents? How will they replace your income? This is the primary reason why you should get life insurance. In case you die while your children are still young you can still provide money to their college fund for through your life insurance. Your family will have money to continue paying the mortgage to your house or your business will not die the moment you do. It is your choice to make sure that your death won’t cause financial problems for those you leave behind.

There are two types of life insurance you can get: term life insurance and whole life insurance. The difference between the two is quite simple: term can be bought for a limited number of years (one to 30 years) and you pay an amount of money until the term is over or until you die. In case you die within those years the insurance company will pay the money to your beneficiary. Let’s say you buy term life insurance for 15 years and you don’t die, what happens then? Well, you don’t get the money you invested in the policy. You could choose to extend the term life insurance but the costs are astronomical (for example you pay $200 a month and after the period expires you could end up paying $2000 a month!)

Whole life insurance has a bonus investment fund. You end up paying more money on a monthly basis that you would for a term life insurance, but you can borrow against the life insurance policy during the course of your life.

If you’re not sure about what type of life insurance to get, there are many ways of getting informed. You could go for a low cost life insurance that will fit in with your budget. There are many options, learn more about them and make an educated choice.

 

 

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Tags: Financial services, Insurance, Life insurance, Term life insurance

Category: Insurance