For those of you who still don’t know why life insurance is imperative, then you are just in luck because you are about to find out the reasons behind such need to be insured.
Is It For You?This one is pretty easy to figure out. If you are single, without a family, have a stable source of income, and have a decent amount of savings in the bank, then you don’t need life insurance. Same goes with divorced individuals and married couples without children. However, you must get yourself insured if you have kids under 18 years of age so that in case you die, you can rest assure that your children will be taken care of. If you don’t have any savings but have a stable source of income, then you might want to get life insurance as well, whether or not you have children. The money that you will receive can be used for your retirement in the future.
What Type of Insurance Do You Need?
There are two kinds of life insurance. Term life insurance is the most basic one. It works pretty simply. You just need to pay a fixed monthly premium for about 15 to 20 years and you can either continue paying for it or you can just get the money and use it for whatever purpose. However, keep in mind that when your term has expired, your coverage will stop too.
The second one is called whole life. Whole life insurance, which is also known as universal life, requires you to pay for the rest of your life. It costs more but it can cover everything that you need plus the fact that it is also an investment on your end since your money also grows as time passes by at a much higher rate.
When to Get One?
“The longer you wait, the higher your rates will be.” This is the rule for all insurance policies. If you start early, say at 25 years old, by the time you are 40, you are already earning at least half a million dollars. The moral is, it really pays if you begin paying your monthly premiums when you are still young.