Why is it important to have life insurance?

There are a lot of people that don’t understand the importance of having life insurance. Even though you may believe that the terms of life insurance are not good for you and you tend to put off dealing with this, it is important to know that the market has lead to numerous changes and you can even adjust the contract by adding riders and additional clauses.

Life insurance is created as a replacement of income that would be generated had it not been for the untimely death of the person who supports the family. Different variations of the insurance applications have made it possible for every person to ensure himself or herself and the family members against poverty and financial difficulties.

If you are concerned about the money, the insurer will offer you flexible rates or you can start with one type of the insurance and replace it with another one after a certain period of time. This is called a hybrid option and one always needs to check if this is integrated in the agreement made with the insurer. These convertible policies are a smart choice, since life is full of surprises and your health can unfortunately deteriorate as you age.

Important things that you should never do when purchasing a life insurance:

Postponing the purchasing of the policy. If you wait, your physical condition can change and the premiums can be considerably higher. There is even a possibility of getting rejected since you can be perceived as uninsurable.

Disregarding the spouse. When deciding on the type of insurance, one needs to know that a spouse can have quality reduced living standards it’s important the policy should be suited to both of the spouses in order to meet their needs and capabilities.

Letting the policy lapse. Do everything in your power to keep the policy going since by surrendering it you can lose the cash value.

The two main policies that people are presented with are already mentioned term policy and whole life policy. Term policy can be more beneficial in terms of finances since it is cheaper and you can maintain it over a specified time period that can range from 5 to 35 years. This means that you will be obliged to renew it from time to time which can be viewed as a bit of a hassle.

The permanent insurance, as the name implies, cannot expire and you will maintain it by simply paying your instalments in orderly fashion.

You can also be provided with return on premium policy that allows you to get the money back when the policy term ends.

Regardless of the type you choose, you should always bear in mind that life insurance is not wasted money. It is an investment in your family’s security and their future lives.

If you have questions about life insurance or want to get coverage at the lowest price, please contact us at 613-286-6841.