Thursday, November 15 2012
Whether you go for whole or term life insurance, you need to answer a question before that. Do you really need life insurance?
The duration for cheap term life insurance usually lasts up to 30 years—still relatively long-term at this point of view. Life insurance is a long-term investment no matter how you look at it, and long-term investments usually involve forking over wads of cash. It isn’t mandatory that you get life insurance. But if you face the following situations, you may have to get one.
Source of income
You’ll most likely need to buy term life insurance if family members rely on you to feed them and sustain their needs. In the event of an insurance holder’s death, beneficiaries will receive a lump sum so that they don’t get cut off from a stable income right away. If you’re living all alone, life insurance may not be a priority right now.
In connection with this, you also have to consider how long it will take before some members of the family can start earning on their own. If they’re already in college, they are less likely to depend on your income, with the ideal projection that in a few years they are expected to land a decent job. Take note that insurance premiums become more expensive the older you get.
65 and above
If your family bears a history of diseases, consider buying insurance while you’re young and healthy. The longer you wait while years get tacked on you, the more life insurance is going to cost you. In a Wall Street Journal report, a life insurance worth $500,000 for 20 years can cost $6,000 a year if you buy it at age 65. If you buy the same coverage at age 40, it may cost you $500 a year, a 92 per cent difference in cost!
Dues after dying
If your bank accounts are overflowing with cash, you may not need life insurance. A life insurance may be recommended in cases where you’re expected to leave unpaid debts behind after your death. Life insurance, in general, may come in handy if your properties and assets are in danger of being sold off.
Before you make your purchase, shop for the best possible rates. Independent insurance agencies, such as InsuranceAtYourFingertips.com, have experienced agents who can custom-make a comprehensive insurance program to meet your specific needs.