Life insurance - make sure your family is cared for
Life insurance is intended to provide financial assistance in the event of death. Life insurance policies are sold by financial institutions, such as banks and credit unions, by life insurance companies, or through direct investment products with a variety of benefits and features. The policyholder pays a premium which entitles him or her to receive a periodic payment—sometimes lump sums, sometimes income payments—for as long as the policy remains in effect.
In most cases life's not fair: sometimes people die before they should! Certain life events can leave you without much financial support, even if you were wealthy at one time. Imagine losing a spouse or doing something you know is wrong, that's hard enough on you, but you still have to deal with your family. Without a life insurance policy, that burden might be too much to bear.
For years now, the popular book and TV show "The Secret" has taught us this: what we're doing now determines how we feel later on. It's all about our thinking and how we interpret the world around us. We can stop wishing for things that don't make us happy—and start wishing for things that will! In order to do this, let me describe one of the most effective tools in life: an insurance policy.
The ability to enjoy financial freedom is one of the greatest joys of life. But it doesn't mean everything to everyone. Some people don't think they need it because they have a lot of their wealth tied up in material things, or because they think their business will be an estate, or that if something happens all their love ones will not survive and will be sad and miserable.
But material stuff can be sold; businesses can be sold; loved ones can suffer just as much if not more without the person who passed away. Life insurance is an important part of being a responsible person and knowing that you will never leave any loved ones behind to fend for themselves with no financial support. After all, people have needs that can be expensive: college costs, weddings, funerals, caring for elderly relatives.
It is important to look at life insurance not just as a future need but as a tool to help you fulfill your dreams as well. What do you want to leave your loved ones? How will they live without you? There are things that make life more comfortable and enjoyable and one of those things is proper insurance coverage. The right life insurance plan can save your family from living in poverty if something happens to you.
A whole lot of people don't realize they need life insurance until it's too late: death happens! Retirement means leaving a job with benefits that include employer-backed pension plans and health care. If something happens to you, your loved ones can face financial hardship in your absence. How important is this?
Why are some people very careful about protecting themselves while others don't seem to think about it? It's not that they're lazy or uncaring; it's just that they don't really know how to take advantage of opportunities. When you know more about the ins and outs of life insurance, you will realize its benefits and understand its purpose.
What are some of the things you should know about life insurance? Why do I need to have a policy? How much coverage do I need? What is term vs. permanent? These are some of the questions you will get answers to by reading this article.
Life Insurance does not provide you with a lump sum payment, but rather with periodic payments for as long as the policy is in effect. The amounts of payments vary depending on the terms set forth by your policy. Many life policies include features like cash value and cash surrender value that can help pay for future expenses.
People often confuse life insurance with health insurance, but there are distinct differences between the two types of coverage. Life insurance is designed to help your family if you die, while health insurance is designed to help pay for medical expenses related to the policyholder's health. Life insurance coverage is typically more broad in coverage and provides security for your loved ones, whereas health insurance coverage can be limited in what it covers.
This article will discuss some important things to consider before purchasing life insurance. Before you purchase life insurance, review the proposed policy with the agent and make sure that you are comfortable with its features.
Some people will buy life insurance without seriously considering the expense of a policy or the benefits presented. Some people think that it is worth the expense because nothing can happen to them. However, people who have covered themselves with life insurance benefits have purchased this insurance at the correct time in their lives when they realized that they needed it.
Most life insurance policies are sold by financial institutions such as banks, credit unions and mortgage companies. Life insurance companies sell policies to large employers and pension plans and make up a significant portion of the market.
Other types of life insurance cannot be sold directly by a financial institution, but rather are sold through direct investment products like individual retirement accounts (IRAs). These products are typically designed to offer people a higher return on their investments than banks will. Life insurance is considered an essential part of such investment plans.
Life insurance can be divided by its purpose: to provide income if you die too soon, or if you are disabled and unable to work. This article will focus on the former—if you want life insurance to cover disability or other specific risks, seek advice from an independent financial adviser instead of relying on this article.
If you are interested in buying life insurance, you will need to determine how much coverage you need and understand how it will work. There are many types of coverage that can be purchased from different companies.
You will want to choose a policy with terms that suit your needs. Certain policies have longer terms than others, and this affects the frequency of the payments. For example, if your goal is to leave a future inheritance for your family from your estate, you do not need a life insurance policy with a relatively short term. Life insurance policies are sold by financial institutions such as banks and mortgage companies.
Paying for life insurance is usually handled through monthly payments (just like auto loan payments). Before you purchase a policy, make sure that you understand its monthly payments. You will be paying for this policy for the rest of your life, so you need to make sure that you can afford the payments.
Many people who are considering purchasing life insurance find themselves wondering if they should get term or permanent life insurance. What's the difference? Well, permanent life insurance typically provides coverage until you reach a specific age like 85 and is usually more expensive in the long run than term life is.
Conclusion
As you can see, life insurance is a very important aspect to consider for anyone, especially parents and retirees. Those that don't have adequate coverage are often left with major financial problems when an illness or accident leaves them disabled or unable to work. A $100,000 policy with a 10-year term will provide monthly payments worth $722 per month. Even if this amount remains the same throughout the duration of the policy term, the client will be paying about $1,150 annually to pay for this policy! Compare this type of cost to a $200,000 policy with 30 years' term and monthly payments of around $360 per month ($945 annually).