Like any insurance, life insurance can be confusing to those who don’t have it and even those who currently have it. Many people tend to wait until an issue arises before even considering Life Insurance. Let us tell you the benefits of it and help you break it down a bit!
What is Life Insurance? Life insurance is a contract between you and your insurance company that pays a lump sum of money to your beneficiaries if you die while the policy is in force.
What kind of Life Insurance do I need? Well, there are two different types of life insurance: term and permanent. Term life insurance will provide coverage for a specific period of time, while permanent provides coverage for your entire life and it may have some additional benefits such as cash value or investment options.
How much Life Insurance is right for me? It differs for everyone, and it will depend on your personal and financial situation, such as your income, debts, expenses, and dependents. The most common answer to this is to have 10-15 times your annual income in life insurance coverage.
5 things to consider before getting Life Insurance –
- Age
- Budget
- Health Status
- Long-Term Needs
- Estate Planning and Investments
5 facts about Life Insurance –
- 52% of people in the US have life insurance
- 47% of women have life insurance vs 58% of men
- 33% of Americans believe they are underinsured
- 34% of individuals aged 18-24 have life insurance whereas 57% of people 65 and older have life insurance
- 4.5% to 9% average percent increase in your insurance costs as you age, assuming your health stays the same
5 myths about Life Insurance –
- “I don’t need Life Insurance once my children are self-supporting and my mortgage is paid off”
- “I’ll have enough money saved by the time I pass to give something to my children and grandchildren”
- “I thought I would need Life Insurance to help pay a estate taxes, but that’s no longer a concern”
- “Life Insurance costs too much to buy when I’m older”
- “I don’t need coverage because I’m younger and healthy”
There are many benefits to life insurance such as financial security and peace of mind. Knowing that your family will be financially secure if you pass away provides emotional relief. Life insurance gives you one less thing to worry about. But still, many people have their doubts and/or excuses as to why they don’t need Life Insurance. Whether its money, age, health status, etc. it is always a great idea to be insured. Finding the right Life Insurance may seem stressful so leave that up to the experts!
