In life, we have to weigh the options of things we need and things that are just purely a “want”. Sometimes, we ignore the right things and once in a while, we ignore the wrong things. Insurance is definitely something that falls into both of those categories, but it’s completely dependent on you as to which category in specific. Some people don’t need life insurance and others do, but which is right for you? Read on below to get a good understanding of life insurance and why you probably do need it.
What Is Life Insurance?
Life insurance is a contracted policy with a company in which premiums are exchanged for a death benefit (usually a sum of money given to beneficiaries). A lot of times, this is based on the goals of the policy’s owner, especially if they’re budget-minded. It’s generally pretty easy to find one of these insurance policies, which you can do through the Internet or local yellow pages. Upon death, the beneficiaries will receive not only the sum of money you’ve designated with your plan, but other things like wills and property as well. Once again, this depends on the insurance plan itself, which varies from company to company.
What Are Some Of The Benefits?
There are several benefits of life insurance, the first being that your beneficiaries are paid out upon your death. Another one is access to your cash, which can be taken out as a policy loan once it accumulates. You can also have something called asset protection, which offers a sort of financial safety net during even of your death (this relates to any assets you have like property). Life insurance is also very consistent with the accumulation of premiums and funds you contribute to the plan, making it a relatively safe “savings fund”. Life insurance is generally pretty flexible as well, meaning you can adjust things on the fly, especially with the loose restriction a lot of companies provide. This goes as far as tax investments and 401k funds.
Life insurance is a good way to financially secure your family for the long-term as well as yourself. After the cash has been saved and consistently built throughout the years, there are a lot of options on what to do with it. As mentioned above, you can do a policy loan, though you can also convert it to other things like a lifetime income. It can even provide benefits outside of contractual agreement for just death related instances, such as some health coverage and more.
Life insurance is not a bad thing to have and today, it’s much cheaper and easier to access than it was before. Make sure to research the company you’re interested in purchasing a policy from to get the best information. Don’t forget to talk it over with your family members and loved ones as they’ll likely end up being marked as beneficiary. Regardless, they’re a good idea all around.