Life Insurance

by Kelly

Many people associate life insurance with the loss of a loved one, and the topic can be quite sensitive, but being covered gives you the peace of mind, that your family will not suffer financial hardship in the event that you die. If your family depends on your income, being covered will ensure that they will be able to survive when you are not around to contribute.

Life Insurance Form

Why Being Covered is Important

The loss of your income will be replaced when you are no longer around to contribute. Funeral expenses are expensive. Being covered will alleviate the burden of paying for final expenses and burial cost. Debts that you leave behind, such as a mortgage, credit cards, and car loans can be paid off if you are covered. If you are a business owner, being covered is important to protect the future of your business and for income replacement. The loss of a key employee can cause the business to suffer. Being covered will ensure that the surviving business partners are able to keep the business afloat when you are gone. Having insurance can be a major asset to your business.

Types of Policies

There are two major types of policies. Term Insurance and Permanent Insurance. Term insurance is the simplest form of life insurance and the least expensive. Term insurance might not be good for a long-term policy, because it gets more expensive as you age, or you may not be able to purchase it because of your health. You never own term insurance, but it is good to have in case of a tragedy. Permanent insurance is more expensive, but is built to last forever. Unlike term insurance, permanent insurance can build cash value.

With a permanent policy, you can set your premium to remain level for life. Permanent insurance can be paid for over a shorter period of time. No other premiums will be due for the rest of life and you will then own the insurance coverage. There is no right answer to which type of insurance is the best one, because everyone’s situation is different. You should choose the policy that is appropriate for you.

Paying for Policies

If you are looking to purchase a policy, your primary concern is probably how expensive it is. Maybe you have never considered purchasing a policy, because of how expensive you think it is. With money being tight, you may be wondering how to fit a policy into your budget.

Contrary to what most people think, being covered is not as expensive as you think. You might be surprised at how affordable being covered is. If you can fit $20 to $50 per month into your budget, you can afford an insurance policy. Being covered will give you the peace of mind that your loved ones will be stress-free if a tragedy occurs.

How to Buy a Policy

There are several ways to buy a policy. First look for a quality provider. You can purchase directly from an insurance company, or through an independent local agent. Do your research. Find an agent that will help you understand the type of policy you are buying. Be sure to shop around, and review quotes to make sure you get the best deal.