While most adults have pondered whether life insurance is right for them, few have taken the time to understand exactly how it can save them and their families money. There’s a wide variety of life insurance types on the market and each has its own unique benefits.
How Breadwinners’ Families Can Benefit
Anyone who is the breadwinner for his household should obtain life insurance right away. If he or she happens to perish, the family will be left without a source of income. The results could be devastating. They could lose the family house, automobile and much more. A life insurance policy will provide the decedent’s family with a steady source of income far into the future. This way, they’ll be able to gradually adjust to life without the breadwinner’s income.
Those who are married without kids should consider life insurance simply because they typically pay for large items like a home or automobile together. When one perishes, the other will not be able to maintain the same quality of life with solely his or her own income.
Single parents desperately need life insurance. A single parent does it all for her child and if she’s not around, her child will have no means of support. Even singles without kids should obtain life insurance. They might have student loan debts that family members co-signed. Those relatives will likely be sued if they don’t pay the remaining balance of the student loan when their relative passes on. The life insurance policy could help offset some or all of such an expense.
Parents who are retired with kids need life insurance because they still pay for their kids’ life essentials. Their kids will need things like clothes, school supplies, food, and other items if the parents happen to perish. A retiree’s estate will be left to his heirs, but it will be taxed. A life insurance policy’s proceeds are not taxed.
Accidental Death Insurance
Life insurance is also available in the form of accidental life insurance. This issues a single payment to the decedent’s benefactors if he dies in an accident. It typically provides for the family as well as the insured if he suffers a dismemberment. Individuals who work in dangerous blue-collar jobs should take advantage of accidental death insurance.
Term Life Insurance
Term life insurance provides financial benefits to the insured’s family for a specific number of years beyond his or her death. These benefits typically last a decade or longer. One of the better aspects of term life insurance is that the monthly premiums are consistent from month to month until the coverage period expires. Term life insurance is usually more affordable than whole life insurance.
Whole Life And Universal Life Insurance
Permanent life coverage is divided into whole life and universal life insurance. Universal is quite flexible as the insured can change his coverage levels and monthly premiums throughout the policy. Whole has stiff premiums but empowers the insured to take advantage of lifetime coverage that provides a cash value in order to delay taxes and save for the long haul.
Life insurance benefits a variety of individuals across a myriad of demographics. People insure their homes, automobiles and valuables, so why not insure your life as well? The low monthly premium of life insurance is well worth it, considering the potential for a substantial payout.