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Insurance
Some people believe that having life
insurance -- planning for their death -- will bring misfortune to
their lives, and would rather not have any at all. Unfortunately,
too many people don't realize the importance of life insurance until
it's too late. Life insurance protects those who depend on your
paycheck, such as your wife, children and quite possibly, your parents.
If you die prematurely, life insurance can provide ongoing income
to your dependents, until they are able to live comfortably without
it. It can also provide emergency support for legal, medical and
funeral costs, should family savings not be sufficient to cover
them. single individual -- or someone who's one-half of a two-income,
no-dependents household -- won't likely need an abundance of life
insurance, if any. Remember; life insurance is not a state lottery.
Its purpose is to cover any unexpected costs that a family unit
cannot afford or that would put the family's financial situation
in peril. At this stage in your life, the main concerns to plan
for are funeral costs, and unexpected estate taxes. On the other
hand, if you're the sole breadwinner for a large family, with little
savings, then life insurance is essential.
Once basic items such as shelter
and food are covered, life insurance should be next on your list
of priorities. Imagine yourself gone tomorrow; what would the immediate
impact on your family be? Are they counting on your paycheck in
the years ahead to cover basic needs and future savings goals? Could
they afford the funeral costs? Who would pay the home mortgage?
Would your family be thrown out on the streets? At this stage in
your life, if you still don't have life insurance, maybe it's time
to consider getting some -- not for your sake, but for your family's.
Simple Term life insurance, much like car insurance, is the essence
of simplicity -- pay the premium, get covered for the term. Competitive
prices Because of their simplicity, term life policies can be easily
compared on the basis of price alone, which has effectively led
to extremely competitive prices. Flexible Most term policies are
very flexible, allowing for both renewable (you can renew for another
term policy without a medical exam) and convertible terms
They find themselves uninsurable
when they discover they have some critical illness. People should
give life insurance buying serious thought at least once per year
as ones situation may change and you find that your need for life
insurance may change as a result.
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