Many people ask the question: is life insurance worth it? It can seem like an added expense. But, it can also be a savvy way to save for the future. Let’s be honest; no one wants to think about their own death. No one wants to think about the prospect of losing a loved one. Life insurance isn’t about questioning your own mortality. It’s about taking a savvy step to protecting those around you.
Life insurance can seem like an added expense for many. But, it can also be a critical policy to safeguarding your family.
Life Insurance: Sole Breadwinner
If you are the only earner in your home, are you sure that your family could cope with the financial hit of you not being around? Life insurance can pay out a lump sum after your passing. It can also be released as a regular income. If you are the sole earner in your home, you need to think about your family’s financial stability. Children and spouses have come to rely on your income. Make sure that they are provided for.
If you live in a house where you and your spouse work you may think that life insurance is unnecessary. But, losing half of the household income can have a detrimental effect on your partner. Think about the costs of the mortgage and bill and assess whether you can afford to live on one income.
If you are single and have no children, life insurance may not apply to you. Forgo this cover in this instance. It really would not be worth it.
Types of Cover
There are various types of life insurance, according to Cameron Insurance Services. The key is to find a plan that suits your needs. Level term insurance can be sought and is the most common type of policy. This is where a fixed sum is paid out in the event of your death. However, this is, usually, subject to clauses.
Decreasing term insurance is another popular form of life insurance. The payout is reduced should you live longer. Let’s be honest, we all want to live longer. This can be a good plan to take out for aging couples or couples who are in the over-50 bracket of life. Decreasing term insurance may also be linked to mortgages. Not all life insurance policies cover mortgage repayments. You need to ensure that you are au fait with the policy before you take it out. In short, read the small print.
Be Prepared to Answer a Lot of Questions
You will be asked a lot of somewhat personal questions when you are researching taking out a policy. You will have to answer questions based on your savings, income and occupation. You may also be asked questions about your weight and state of health. Your age will also be a significant factor in how many your premiums will cost. While these issues are personal, you need to answer them honestly. If you don’t, your policy may be void. This means that your loved ones will not get the payout after your passing.