Five Things You May Not Know About Life Insurance
Here are five important aspects to life insurance that you need to know.
Chances are good that the only time you hear about life insurance is when you review your City-provided benefits, or perhaps late at night on one of those TV infomercials. Even then, you probably don't really know what all the fuss is about and what your life insurance policy does or does not cover. How to provide for your loved ones in the event of a tragedy occurring may be the furthest thing from your mind, but the earlier you can be prepared the better. Here are five important aspects to life insurance that you need to know.
Buying Life Insurance Is an Investment in
Most of us recognize how important it is to save money for our retirement years, but did you know that buying life insurance also represents a strategy to protect and preserve your future wealth? That financial protection is there for your spouse and dependents in the event something happens to you.
Life Insurance Comes in Two Versions
There are two basic versions of life insurance for you to choose from. One is term life, in which you pay a specified premium for a set number of years: 10, 20, 30, etc. With this type of insurance, you and your family are covered only as long as the term is in effect. Once the term expires, so too does your coverage. Permanent life insurance remains in effect until you die or stop paying the premiums. Term is usually the least expensive of the two.
Life Insurance is More Affordable Than You Might Think
Most people are under the impression that life insurance premiums are quite expensive. Some types of insurance can be rather expensive, and the more riders such as burial insurance you add, the more expensive your policy may get. The same applies if you suddenly start to experience major health issues or are a smoker. But providing you are in relatively good health and are not a smoker, you might be surprised at how affordable life insurance can be.
Major Life Events Are a Good Time to Buy Life Insurance
Being an adult is full of major events, including getting married, buying a home, having children, or getting a promotion or new job. Events like these are often the point at which people start looking at life insurance as a way to protect their families in the event of an untimely death.
You Might Need More Coverage Than You Realize
Some are under the impression that the only reason for buying life insurance is to cover expenses such as funeral costs and paying off the debts they leave behind. However, your policy should offer enough coverage to provide for a broader set of financial needs for your family, including both their current needs and those that are likely to occur in the future, such as college. Be sure you talk to your insurance agent about your current life situation and ensure you have ample coverage to take good care of your family in the event of your death.