Most of us know the importance of life insurance and we purchase the insurance to make sure our families and loved ones are financially taken care of in the event of our deaths. However, there are many aspects of life insurance that people are often unaware of.
- Financial plan. Life insurance is a part of a sound financial plan. Life insurance helps with planning for your loved ones’ long-term health and happiness, especially those who depend on your income, in the event of your death.
- Affordability. Life insurance is often remarkably affordable for most people. The healthier you are the lower your premium will be—therefore maintaining a clean bill of health will also decrease the cost. People who are not smokers, do not have a history of alcoholism, and live a no-risky life will also have lower premiums.
- As a general guide, a healthy non-smoking 30-year-old man can get a $250,000 20-year level term policy for about $16 a month.
- Lifechanging events. Getting Married? Having a child? Changing jobs? During life-changing events, it is important to reevaluate your current life insurance. Adding a dependent to your life means that you might want to increase the level of insurance that you are maintaining, to ensure that everyone who depends on you is well provided for.
- Changing your policy. You can change your life insurance. If your family expands or your life situation changes, you can always make updates to your current coverage. Another reason to update your life insurance policy would be to reflect the cost-of-living increases. This is because the amount of financial support your family would need could change substantially upon your death from what the cost-of-living was when you purchased your plan. It is important to consider how much value your life insurance policy holds as you age and make sure it is increasing in value in relation to the standards you maintain.
- Amount of coverage. You may need more coverage than you think. Commonly people believe that life insurance is purchased to pay off personal debts and funeral expenses. However, an advantage of obtaining life insurance is to ensure that your family and your dependents are able to maintain their current lifestyle with no financial constraints in the event of your death.
- Payout. Life insurance pays out relatively quickly. The payout for life insurance usually happens within a month. This should put your mind at ease knowing that your loved ones will have the money they need to make bill payments and cover final expenses for you.
Take control of your life insurance policy today. Whether you are interested in purchasing a policy or you want to update an existing policy, we can help.