Life Insurance Protects Your Family
Most people do not like to talk about life insurance. Thinking about death is uncomfortable – especially when it is your own death. But preparing for your family’s financial well-being is a responsible step. You should care about what will happen to them once you’re dead. Life insurance is one way to show that you care.
Some people think only the primary income earner needs life insurance. That person’s death will hit the family hard, but any death will hurt the family. There are funeral costs for everyone – no matter if they are adult, a child or not the primary income earner. It makes sense to get life insurance to cover everyone’s burial expenses. If you can only afford to pay for one person, then perhaps it should be the primary wage earner.
The amount of insurance you need depends on several things, including your salary, number of dependents, lifestyle and debts. Insurance experts say you need a policy that covers five to ten times your annual income.
There are also several types of life insurance. Consider each carefully before deciding which is best for you. The types of life insurance are:
– Term insurance policy. This offers coverage to policyholders for a specific time. Most term insurance policies provide coverage from 10 to 30 years. If the insured person lives past the term, then the policy becomes obsolete and doesn’t pay when they die.
– Whole insurance. This policy remains in effect until the policyholder dies. It also accumulates cash value.
– Universal insurance. This policy is a combination of whole and term insurance. Excess premiums are deposited as a cash value in the policy.
– Variable insurance. This enables the policyholder to accrue cash value because the policy acts as an investment. The success of this investment depends upon the stock market.
Speak with an insurance agent to find out more about the options available to you.