It’s time for us to get life insurance

By | September 21, 2015

Putting off life insurance is never a good idea, but it is easy to get lost in daily life. From work to children and activities, you stay busy. Life insurance is a must-have and something we should not have put off, but we did. Life insurance can help you pay for an unexpected death or sickness in the family, something that is beneficial but something you do not necessarily want to think about. No one wants to think about losing a loved one, but you must come to grips that it could happen and you need to be prepared.

What is life insurance?
A policy for life insurance is a signed contract between you and an insurance company. As you make payments, known as premiums, the insurance provides you with a type of coverage. You will receive a lump sum payment if your spouse passes away, known as death benefits. The insured person names a beneficiary so that money will go to the set person to be used for funeral costs, home mortgage, etc.

Life insurance is basically chosen by the individual based on their need and goals. There are several types of insurance, with options for everyone. Prices of insurance coverage will vary based on your age, health, and several other factors.

Term Life Insurance
One option you can choose from is the Term Life Insurance. This option gives financial protection for a period of time. This can typically be 10, 20 or 30 years. Premiums are at a set level and will be guaranteed over the time frame of your coverage. Once the time period is over, you will have the option for continued coverage but it may be at a higher cost. This policy type can be used by older individuals who need income after the working years are over. This can be a safety net for beneficiaries who need to meet financial payments after your passing.

Whole Life Insurance
A permanent life insurance type is called Whole Life Insurance. This option is created to cover you for a lifetime. This type of insurance will have higher premiums than the term option as you will be covered for the duration of your life span rather than a set time period. Premiums will be fixed and the policy will have a cash value. This can be a savings option as well as eventually be tax-deferred over time.

Life insurance can be confusing. It is best to find an option when you are younger to ensure coverage for you and your family. As you age, premiums can be higher and it may be harder for you to afford a monthly or yearly payment. We have learned a great deal about life insurance and the options we can choose from based on our age and finances by talking to our local insurer. By speaking with a professional, you can understand the confusing terms and learn what coverage options will work best for you and your family’s long term needs.