Alice Braga

My take on insurance and financial needs

Is Life Insurance Really Necessary?

Most people have plenty of monthly expenses already. They may wonder why they should add another bill to the mix by purchasing life insurance. It’s hard for some to justify buying a product they aren’t sure they’ll ever use when they have so many things they actually need that they cannot yet afford.

The fact is, though, that life insurance is a solid investment against potential financial ruin in the future for your family. If your family relies heavily on your income, what are they going to do when you’re suddenly not there to help provide for them? How will they pay for their essential daily needs like housing and groceries if you have not planned a supplemental source of income for them through a life insurance policy?

Not to be overlooked either is the high cost of funeral expenses. Where will your family come up with several thousand dollars to pay for your final expenses if they don’t have a life insurance policy to cover them? They may not be able to make the house payment because of paying for a funeral and end up losing the family home. A small monthly life insurance premium now can avoid a disastrous outcome like that in the future.

Once you are convinced that life insurance is a good idea and a necessity in your life, it’s time to start determining which kind of policy to purchase. The main thing you need to understand is that there is “term” life insurance and “whole” life insurance.  I found great resources on all types of life insurance at GoldSmithInsurance.com.  You should check there first to help with determining the type of life insurance that best suits you.

Since your premium goes up the higher your coverage goes, it’s important to make an accurate determination of how much life insurance you really need to purchase. Also, realize that a whole life insurance policy will cost more because you can tap into it before you die.

Other factors influencing your monthly premiums will be things like age and health of the insured. This is another reason deciding to purchase life insurance as early in your life as possible is important. The older you are and the more health conditions you have, the more expensive your premiums will become.

Don’t try to figure this all out on your own. Find an insurance agent you can trust, and have a conversation with them about your needs. They can help you determine the best policy for the needs of yourself and your family.

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Published in Monday, February 3rd, 2014, at 4:09 pm, and filed under life insurance.

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