Why Do You Need Life Insurance?
A horrible thing has happened in my family recently. I lost my grandmother. I have been fairly fortunate when it comes to loss in my family, but this has hit hard. One day you are going on your merry way and life is wonderful, then with one phone call you can't hear anything and your world is changed forever. Somehow it is easy to think death happens to others but not you. You put that off because you are so content in your life and happy, that you can't imagine it happening. Well it does and it is expensive. I don't say that to sound harsh, I say it as a form of preparedness. I have seen first hand the benefit to having a life insurance policy for yourself and for those you love.
The first thing to mention is that there are two types of life insurance:
- Universal (or whole) Life Insurance, which is purchased and is good for the length of your life. The premium never goes up and it builds cash value that can be borrowed against. This type of insurance can be more expensive, but the peace of mind alone can make it worth it.
- Term Life Insurance, is buying insurance for a set period of time. Whether that is 5,10,30 years, you are only covered during the term. This type of insurance can be more affordable and be a great option if you don't think you can afford the Universal Life Insurance. It is better to be covered for a term and then re-examine where you are when it expires then to have no coverage at all.
Some tips to keeping life insurance premiums down can be:
- Stay in good health. This is important as health issues and pre-existing conditions can drive premiums up. Granted their are some conditions that you have no control over, but weight and health issues associated with weight, and smoking can be two issues you can get a handle on before getting insurance.
- Buy when you are young. This plays back to the previous tip. The younger you are the better opportunity for lower premiums. It is an investment but one that is so important.
- Have a trusted Life Insurance broker that can help you figure out exactly what you need. Here at Ross Insurance Agency, Kevin Ross is the perfect person to help you navigate the life insurance waters.
Ask yourself - what is the goal of the life insurance?
Burial and Services? Pay off our debt and our mortgage? Help with child care and college now that I am a single parent? All of it?? Having someone who listens well and is knowledgeable in the field, like Kevin, will be a comfort and help to you when figuring out your goals vs. how much you can afford.
Life Insurance isn't pretty or comfortable to talk about. It forces us to look at what, for most of us, would be an unbearable event. The death of a loved one. That is why, it is so important. It can be up to $10,000 for a funeral and burial these days. I don't know about you, but I don't have that just sitting in an account. I need to plan. We all need to plan because the time to wish you had it, shouldn't be when it's needed. Call our office today to get more information.