Life Insurance, Do You Need It?
If the thought of applying for insurance has already crossed your mind then you are on the right path. Only a few people realize the importance of having insurance.
Most people think that insurance is only for those who have properties to insure when the fact is it should be considered by everyone who holds something valuable.
Everyone has this precious thing even if you don’t own cars or a lot of houses, and this thing is your own unique temple which is your body. The type of insurance that you need to get is what we call life insurance.
Why You Should Get a Life Insurance
Life insurance is basically sharing the risk with the insurance company. Insurance companies take a portion of the risk from you in return for payment. This means that whenever you are afraid of something bad that might happen to a valuable object to you, then you should consider getting insurance. One of the things that we are usually afraid of is death, and that is the life insurance is for.
Life insurance does not assure you that you will not die, nor will it make your life longer. The only thing that life insurance will do is to give your family or whoever you will be leaving behind a certain sum of money.
In this way, they won’t have a hard time starting a new life without you, they will be able to live normally without facing very difficult financial problems.
So you should probably consider getting a life insurance now especially if your family is depending on you. You will be able to help them even if you are already gone in this world.
How Life Insurance Works
If you are not familiar with how life insurance works, then here it is. Because life insurance basically deals with uncertainty, investing in insurance companies is like gambling.
You are not sure whether you will actually win the money or not. You will be asked to give a certain amount of premium for equal intervals for a period of time.
Normally it is after you have finished paying these premiums that the bet starts. Most life insurance companies give you a span of time, whenever you die in that period your family or loved ones will get the amount you agreed on.
You don’t probably want to win in this gamble even if it means a lot of money, but just in case the unexpected happens, at least you did something right to ease the pains that your family might be in after your death.
Getting a Life Insurance
There are a few things in this life that are certain, and one of those few things is death. Everyone will eventually die, that is sure, unless a genius mind gets to invent a thing that won’t make that happen, death is a certainty.
And since becoming immortal isn’t really something we are capable of doing now or probably in the near future, or to be exact for your entire lifetime, you should be prepared to face death.
You should have already thought of the welfare of those you will leave behind if ever you die. It will always be better to be ready as early as possible.
Disadvantages of Getting a Life Insurance
Although life insurance is a very enticing idea, one of its disadvantages is that it will add to your expenses. For a family that is only earning enough for a day, it might be hard for them to get insurance.
The immediate needs would most likely be prioritized over those that you don’t know if you will need in the near future. For something as uncertain as death, you can never predict when it will happen.
Another disadvantage is when your insurance expires and you didn’t get to use it. Of course, it is a good thing that you didn’t die in that time frame, but it will end up as though you had made the wrong decision of investing in life insurance. You can argue that you didn’t know it until the time it actually expired, but the money lost is already money that cannot be brought back.
Benefits of Getting a Life Insurance
However many the disadvantages of a life insurance may be, the only thing that will beat those is the fact that if the what if you die later happens, your family will not be left with nothing.
This is especially helpful when your family does not own a lot of properties when your children or siblings are still young; when your spouse isn’t earning, and when you are the only one providing for them, etc. You are helping them prepare for the worst.
Even if it isn’t your obligation to feed them when you are already dead, imagine how the life of your loved ones will turn out if you suddenly die. It is not anymore your responsibility, but surely you can never truly rest in peace if you don’t leave them a proper way to start things after your life has ended.
Life Insurance Tips
Life is short so go on ahead and enjoy a good life. But when you have a family, you would want to be there to make sure that they are alright, protected, and have everything they need.
However, death is inevitable. What you can do is to consider life insurance. You still get to enjoy a good life and at the same time have peace of mind, knowing that when you die, you won’t be leaving your family with a heavy burden.
Here are a few life insurance tips you could follow.
- Life insurance protects your family after you die. This can also include terminal illness or critical illness, depending on the coverage. What you can first do is to find out as much as you can about life insurance. Research using the Internet and know what options are available for you to choose from.
- You might want to consider term life insurance. This is a type of life insurance that gives you basic coverage for a period of time. You don’t have to pay that much but this doesn’t have an investment or saving element.
- Even if life insurance may seem a bit confusing, yours shouldn’t be. Buy only what you need and keep it simple. Base your decision on your needs. You might want to include the cost of arranging a funeral, for the education of your children, and for paying off your dues, to name a few; anything that would relieve your family from the financial burden when you die.
- Ask for discounts. You can get discounts if you stick to one insurance company for all your insurance needs. In this case, you also get better customer service. For those who are married, you can look into a two-in-one policy. Buying one joint policy rather than two individual policies can help you pay fewer premiums.
- Another life insurance tip is to buy it while you are still healthy. Buying life insurance when you are already old or when you are not in a good health condition can lead you to pay expensive rates. This is why life insurance tips include advising you to buy life insurance while still young but not until you already have dependents.
- More importantly, tell the truth when filling out forms and supplying information. You don’t want all that you’ve put in to go to waste.
- The protection of your family should be a top priority and not something you should skimp on. So while you are still around to protect them, consider life insurance and the life insurance tips above.
Disadvantages and Advantages of Permanent Life Insurance
One of the reasons why a lot of people are hesitant to get life insurance is because they don’t really think they will need to prepare for death soon.
This is especially true for young adults, when you are in your 20’s you’d think it would be impractical to get insurance thinking you won’t probably die in the next 20 years.
What you are not aware of is that death is not something that is most probable at certain ages. The problem of how your money for your life insurance won’t go to waste can be solved in another way. This is through entering into permanent life insurance.
Although it might seem promising, one of the most obvious disadvantages of permanent life insurance is its very high cost. You will have to have a lot of spare money for this since the cost is not cheap.
Since you would be insured that you will be covered for the rest of your life, then the money the insurance companies will be asking from you will really be high.
Aside from that, once you stop, you won’t be able to get your money back. So this is similar to a lifetime expense that you will constantly have to pay if you want to ensure your family a good life even after you are gone.
Advantages of Permanent Life Insurance
You should not dwell on the bad side if you are looking at permanent life insurance because there is more to it than just bad. Although the cost is a bit high it is only because permanent life insurance does not only take a portion of the risk, it takes away the entire risk from your shoulders.
Now, your loved ones will be assured that they will not have any financial problems when your death date comes. Aside from that, even if the initial costs might be a bit high, later on, it won’t be such a burden anymore.
Even if the cost of living and other things have raised their prices, the payment for permanent life insurance is not going to go up. It will either stay in its initial pay or if you’re lucky it might even go down. Just remember never to neglect to pay your insurance expenses so that all that you have invested will not go to waste.
This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.
© 2020 Sid mark