Life insurance is a subject that many people may not want to talk about because it makes them uncomfortable and is a morbid topic of discussion. Talking about our own death makes more than a few people squirm, and for that reason, couples mutually skip the conversation without ever exploring these important matters. Death is something that happens to everyone, and we can’t always see it coming. While life insurance can’t make up for the fact that someone we loved has passed, it can prepare us for the tide of financial woes that we may have to endure afterwards.
Who Needs Life Insurance?
If you have a family, are thinking of starting a family or are the main source of income in your house, then you should strongly consider life insurance. Even if you are single, you should take out a small life insurance policy to take care of your funeral arrangements and any debt that you may have left behind.
Life insurance can pay for your kids’ college education, keep food in the cabinets, take care of bills, handle leftover debt and provide for your family during their grieving period. A life policy is an investment in not only your future, but the future of your family as well. If unforeseen circumstances were to occur, is there anyone else in your life who would be truly willing and able to provide for those you left behind? Even if you don’t have a family, is there anyone you take care of and provide for like an elderly family member or friend of the family?
How Much Life Insurance Do You Need?
Before you meet with an insurance agent, you first need to decide just how much life insurance you need. You’ll want to consider medical expenses in case you’re kept on life support or are in and out of the hospital during your final days. Think about how old your children are, what they’ll need now and in the future as well. Do you have a special needs child that will need special care and attention? If your spouse either doesn’t or can’t work is another factor that you’ll want to consider.
The ideal time to take out a policy is when you’re healthy, as you won’t have to pay as much. So stop smoking and try to lose some weight if you need to before meeting with your insurance agent. Another thing to consider is that term life insurance rates are constantly changing, so even if you already have a life insurance policy you may be able to get either the same or more coverage for less.
What Kind of Insurance Should You Get?
There are two kinds of life insurance: term and whole life. Term life insurance covers you for a certain amount of time where whole life has you covered indefinitely. Term life insurance can be bought for five years or more and your policy will remain active until that time is up. While it may make more sense to get a term life insurance policy, you may wind up spending more money than you save in the long haul.
Sit down and have a serious talk with either your family or yourself about what happens to those you leave behind. Life insurance can be there when you’re not, and although it can’t take your place, it can take care of some of the more burdensome financial worries.