The legendary songwriter and Beatle John Lennon was famous for saying, “Life is what happens to you when you’re busy making other plans.” Allowing the unexpected happen adds to the richness of living, but at the same time, one should be prepared for unforeseen circumstances that can impact one’s family. When you get married, buy a home, or realize that a baby is on the way, it is time to think about life insurance. There are so many policies and brokers that the choice might seem overwhelming, so it is worthwhile to discuss your options with a professional.
Who Needs Life Insurance?
You need life insurance if there are people depending on you to support them. This can include a spouse, children or other relatives. Many people decide to purchase life insurance as soon as they get married, when they move into a new home or when they have children. It is always better to get a life insurance policy early on and later because premiums are higher for older people who get insurance. Sometimes a single person will get a life insurance policy to make sure they are ahead of the game.
Types of life insurance
You may have heard the words term, whole, and universal in connection with life insurance but were wondering what they mean. Term life insurance, as the name suggests, refers to coverage for a certain amount of time. This could be a few decades or as much as 30 or 40 years. After the time is past, the coverage stops. Term life insurance tends to be the cheapest life insurance because the coverage is for a limited period of time.
Whole or permanent life insurance takes into account the accumulation of cash during the amount of time you have insurance. Permanent life insurance combines the death benefits with the savings for investment account and can be extended as long as you like. The disadvantage of this kind of insurance is that hefty premium, but many people point out that you are able to borrow against this kind of life insurance. To decide what kind of policy is right for you, find an insurance agent who can discuss a variety of policies.
Another type of insurance that you might become aware of when you buy a home is mortgage protection insurance. Mortgage protection provides coverage in case the person paying the mortgage is no longer able to do so after a catastrophic event. There are a number of advantages life insurance has over mortgage protection, and it is worth doing some research.
Providing Your Family with Security
When you get married or start a family, you naturally want to make sure your loved ones are protected and secure from circumstances that can adversely affect them emotionally and financially. Making sure your family is covered is an important step toward providing protection and peace of mind. An insurance agent can help you wade through the multitude of often conflicting information about insurance to find the right policy to cover your family. Make sure you are getting the right amount of coverage at reasonable premiums.
