You love your family and would do anything for them. It would be nice if you could always be there to provide for and protect them, but that’s simply not possible. However, with life insurance, you can still be there for your family financially, even after you’re gone.
Life insurance probably doesn’t top anyone’s list of favorite things to talk about, but it should be near the top of your list of priorities if you don’t have it. The only guarantee we have in life is that one day, we’ll leave it behind. However, with the right life insurance coverage, you can have peace of mind knowing your spouse and children are taken care of. Continue reading to learn some basics about life insurance everyone should know.
Life insurance isn’t only for senior citizens
As mentioned before, no one likes to talk about life insurance, especially young people. However, one of the most dangerous misconceptions about life insurance policies is that they’re only for the elderly. On the contrary, young people need life insurance as much, if not more, than the elderly.
When young adults pass away, they usually leave behind young families who are fully reliant on the income they brought into the home. Conversely, elderly people usually have adult children who are already financially responsible for their own families.
Term life insurance is the most popular type of life insurance for adults who haven’t reached middle age. Term life coverage typically comes in 10-, 20-, and 30-year terms, but some companies offer up to 45 years of coverage.
The best way to shop for life insurance is online
When shopping for life insurance, it’s natural to want to get as much coverage as possible for your buck. A great way to ensure you get the best rate on your insurance policy is to shop online.
Comparing life insurance quotes online allows you to see different policies, their features, and their monthly premiums side-by-side. It’s a good idea to compare as many insurance companies and policies as possible before making your decision. Shopping online is the best way to get the policy that fits your budget and specific situation.
Age, lifestyle, and health affect your insurability
As you know, insurance companies always assess the risk of insuring an applicant before giving them an insurance quote. Most insurers require a medical exam as part of the application process. They also issue a questionnaire to assess how risky your lifestyle is. Ultimately, your age, lifestyle, health, and type of insurance policy you get will determine your insurability and your premium payments.
Some insurers offer no medical exam insurance, but as you can imagine, these policies are typically more expensive. No medical exam policies are ideal for people with health problems, but if you’re young and healthy, it’s best to go ahead and get an exam.
Some life insurance policies have a cash value feature
Did you know your life insurance policy can serve as a type of investment option? Some policies come with a cash value component that allows your policy to appreciate value with time. Furthermore, you can even borrow against these policies. However, being that the policy is your collateral, you could lose it if you don’t repay your loan.
Surely, you want to leave behind more than your financial obligations when you transition. That’s why it’s important to make sure you have enough insurance to cover your final expenses and leave a nest egg for your beneficiaries.
It’s important to remember that the necessity of a life insurance policy has nothing to do with your age. Furthermore, it’s important to do your due diligence and shop around to find the policy that best fits your family’s needs. If you want to secure your family’s financial needs, life insurance is the way.