Does your family have life insurance?
Many people consider it as something they could do without or something that can wait until they have extra income for the payments. Unfortunately, life insurance is something that you need to have….before you need to have it. For those who have a family who depends on them, life insurance should be a top priority. It is so much more than just funeral expenses. Life insurance gives you a way to financially secure family members left behind. For anyone who is the primary wage earner consider this: what could happen to your family if they were left with bills to pay out? Regardless of whether the children are grown you still have to consider what might happen to your spouse as well as the house.
Don’t be Afraid of Starting the Process
Buying life insurance doesn’t need to be complicated or confusing. First, examine your household finances and bills to figure out what type of coverage you need and how much would be required to cover your family for an amount of time you feel comfortable with. Things you should factor is are how much remains on the mortgage, how much income will be lost because you are no longer earning and costs for caring for the children including clothing, childcare and medical insurance. Also estimate how long it would take for your spouse to reenter the workforce and begin earning income.
Types of Life Insurance
Term Life is the most cost-effective. You can lock in a fixed rate for the duration of the policy, but it doesn’t allow cash to accumulate. It can only be cashed out when there is a death. Whole Life gives you lifetime coverage, guaranteed premiums, and tax-deferred accumulated cash value. That means you can borrow off the policy if you need to. Universal Life also offers lifetime coverage and tax-deferred accumulated cash value along with flexible premiums and death benefits. Variable Universal Life offers the same as Universal Life but with a selection of investment options.
Once you have mapped out your plan for coverage, then it’s time to search online and compare policy prices. You can get free quotes from several different insurance companies such as APIA (click here for more info). Once you have multiple quotes you can compare them side by side to see which will fit both your needs and your budget. You will still want to consult with an authorized insurance agent before purchasing, but with a free quote you will have a good idea of what you need and what it will cost.