More and more people are resorting to term life insurance because of its cheaper rate and flexibility, though some still prefer whole life insurance. Whole life insurance is a policy that you will pay as long as you live. This is more expensive than term life insurance but you will be covered from the time of application until the time of your death. Term life insurance on the other hand, will only provide coverage during the term of the policy. This can be for 1 to 30 years, depending on the policy that you applied for. Term life insurance is a popular choice because it is more affordable. Families with average income can be insured without adding weight on their expenses. This type of insurance also has its pros and cons. Make sure to consider these factors before finally deciding to apply for term life insurance.
With all the varied options available, it can be confusing to find the best insurance policy for you. With some knowledge, however, you can make a well-informed choice that will not only save you money but more importantly, will give you the coverage that you need.
Why Whole Life Insurance?
The first step towards making the best choice is understanding what kind of insurance you exactly need. Life insurance policies vary widely. There are whole life insurance policies and term life insurance policies.
Some of us may have not yet realized the value or importance of having a family whole life insurance. This goes by the idea that this is not being a priority as of the moment due to financial constraint or, simply, one cannot afford to have a life insurance. Others, however, are also scared that they might be duped by false insurance companies. Hence, it is important to always check on the credibility and background of your insurance companies.
Every person living in this world has something to protect. That “something” can either be wealth, a personal property, a person or a family. Whatever it is, we have to do something to protect it. As you begin your new life with your family, the first thing that you should do is protect their future. You will never know when death will come to you. What can you do when you die? Nothing. How do you want to see your family when you die? How do you want them to live? Is your spouse financially capable of protecting your children’s future? It will bother you every single night with what-ifs if you do not do something to protect their future. So what is the best step to take? Get a life insurance.
Life insurance is something important that you need to consider especially if you are the main provider of your family or you have people depending on you. Some people are not ready to talk or even think about the possibility of death. However, this is something that is inevitable and will eventually happen to everyone. When this time comes, what would happen to the loved ones you left behind? They will not only have emotional burden because of your loss but they will also have to face financial challenges since you are no longer there to provide for them. If you have life insurance, your beneficiaries will continue to live a comfortable life, as well as pay for any debts that you have. If you are living alone or you do not have dependents, it may be fine not get one. If not, purchasing a policy is a good decision to make for the sake of your family. How much to pay for life insurance depends on several factors.
Second-to-die life insurance is the type of insurance plan that provides insurance coverage for two people, usually a husband and wife, the death benefit of which is paid out only until both insured parties have passed away. In summary, this means that the policy insures two lives and two deaths, but only one death benefit. This is not a very popular form of life insurance, and is most commonly used only to provide heirs with a means to fulfill estate tax obligations upon the death of parents.
That said, second-to-life insurance, also known as survivorship life insurance, is mainly recommended for wealthy couples that expect to leave behind a large estate that will incur hefty amounts in taxes and other estate settlement costs. This is to protect their heirs from having to pay such taxes, which may even end up in the liquidation of such assets due to the heirs’ inability to pay them off.
Having a life insurance is a very good investment not just for us but also for our loved ones. This is being followed by getting good life insurance companies that can provide this kind of need. Meanwhile, it should be always put into mind that getting a life insurance is not an added financial burden but a lifetime project from which you can benefit in the long run. There are some people who complain about how expensive life insurances are now. They are hesitant to spend over something which they think has no added value in the long run. Hence, people should be educated that life insurances are not just a waste of money but a long-time investment that brings greater good in a future that is uncertain.