By: Mevish Jaffer
In the vast world of insurance, you have coverage options for your health, your home, your car etc., but have you ever considered life insurance? If you haven’t stopped to think about it, maybe it’s time you do. Life insurance guarantees that you and your family are financially taken care of in the event of death. The way life insurance works is that your insurance company is required to pay the person of your choice a previously agreed upon sum of money should you pass away. Similar to other kinds of insurance plans, you are obligated to pay monthly premiums in exchange for life insurance coverage while you’re alive.
So do you really need life insurance? While it’s not the most pleasant thought to ponder over, there comes a point when you have to think about what will happen to your family if something happens to you, especially if you are the primary source of financial support. It all comes down to questions you may not want to think about if something happens to you such as:
- Who will pay for the mortgage on your home in which your family resides?
- How will your family survive financially on a day-to-day basis?
- Who will finance your children’s education?
- How will your funeral expenses be taken care of?
Factors that Affect the Amount of Life Insurance You Need
After making a decision about needing a life insurance policy, you then have to determine the amount of life insurance you will require. There are several different factors that you need to consider before coming to a conclusion about how much life insurance is appropriate for you. While these factors vary for every individual, there are some general issues that apply to everyone.
You have to consider how much, if any, your family can afford to pay towards your rent/mortgage amount. You also have to think about how much debt you will be leaving behind in the form of credit card bills, loans etc. Some other aspects you may want to take into consideration include how much the funeral you wish to have in your honor will cost your family, and the amount of money you want to leave behind for your children’s educational expenses. These are all realistic financial liabilities that will be left to the care of your family in the event of your passing. It only makes sense for you to want to provide for them in advance by having a life insurance policy so they are not faced with financial hardship in your absence.
Term Life Insurance and More
Term life insurance is a type of insurance that aids in covering your short-term needs. If you have an accident, you can claim the insurance amount and it also covers the recipient of choice in the event of a death of a family member. Other types of life insurance that are available include permanent life insurance, whole life insurance, and universal life insurance policies.
There are some things in this world that you aren’t always keen on thinking about, including life insurance! You can’t really blame yourself though because it’s not exactly the easiest subject to tackle. However, it’s definitely a subject you should not neglect to discuss either. As hard as it may be, the best thing you can do is sit down with your entire family and go over all of your options concerning life insurance. Get on the Internet with your wife/husband and find out what the different life insurance quotes are so you can compare several companies to find the best rate. Do what you have to do now in order to provide for your family later.