When is Life Insurance Necessary?

Douglas Melzer_Life InsuranceThe thought of death and dying is not a pleasant experience. In fact, the very idea can be terrifying. However, the unexpected can strike without warning. Fatal car accidents happen every day or the heart can give way at any time. Unexpected illnesses can occur suddenly. Therefore, it is just essential that you protect the ones you love from suffering financially if you were to die. Your children or spouse might depend on your pay check just to survive, or your family members could get stuck with huge funeral expenses or medical bills. Life insurance could guarantee that your family members can continue to live comfortable in the event of the unthinkable.

A life insurance policy is a type of agreement where you pay premiums to the insurance company, and they will provide a lump-sum payment if you were to die. It will protect your family members from huge financial losses. When you purchase a life insurance policy, you will name a beneficiary, and this person would receive the funds if you die. The amount you pay each month will depend upon your age, gender, and medical history. If you are young and in good health, your premiums will be less than that of an older person.

There are several types of life insurance. If you purchase term life insurance, you are protected for a certain period of time. Term life insurance policies expire after a certain amount of time. Premiums normally do not increase or decrease. This option is cheaper than the other types of life insurance, and it has no cash value.

Universal Life Insurance is a type of life insurance that does not expire. It will be active for the rest of your life as long as you keep paying the premiums. These policies are flexible and will permit you to increase or decrease your payments. In some cases, you can even skip a payment.

Another type of life insurance is whole life insurance. This type of insurance will provide you permanent coverage. With whole life insurance, the payments do not change, and the account can serve as a savings account; therefore, the policy has cash value. The cash-value keeps increasing, and you will not pay taxes on the policy while it is still increasing.

You never want your loved ones to suffer the consequences financially because of you. Life insurance can give you the peace of mind knowing that if life takes a horrible turn, those you love most will be taken care of and be protected. Unfortunately, life happens, so when the unimaginable occurs, your family can focus on grieving, not on how they are going to pay the bills.