Why Buy Life Insurance?
When I asked people “have you bought yourself a life insurance or have you insured?” Most of the answers became another question, why buy life insurance?
Buying life insurance is a protection for ourselves and our family, fate is unpredictable, should mishap falls on us we do not know. Who is going to take care of our children upon our death? Should we see them live on charity or let them live in misery? To own a policy is to secure our family; the proceeds from the life insurance can substitute the income to our family upon our death. We also buy life insurance to cover our funeral expenses, for funeral expenses is a huge sum of money to pay. If we died our children have to live on.
Buy term life insurance or whole life insurance?
There are two basic types of life insurance, term life insurance or whole life insurance.
Term life insurance
Term life insurance provides the buyer for a specified period of time or term, this life policy carries no cash value, and it covers the insured for a stated term of 10 to 20 years or more, upon maturity the policy is then expire and invalid, the coverage will then cease. Any how you may request a new policy, but the premium will be expensive if a person is old.
Whole life insurance
Whole life insurance provides the insured permanent or life time coverage and with adjustable cash value, the buyer can borrow the cash value for times in need. The beneficiary will receive the proceeds upon the death of the insured. The premium of this policy depends on the age, health, occupation and some other factors of the buyer.
Buy life insurance early and pay less
To buy life insurance is better to start young, we can start off with little coverage and therefore also little premium to pay. When we are single, we have less responsibility, as we married our responsibility getting more and we can buy another additional life insurance, so that we have more coverage, and give more security to our family.
You can get your free life insurance quote online, the premiums are adjustable at the buyer’s discretion, please feel free to visit us.
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I always recommend that people buy their insurance to match their specific goals and needs. Since nobody relies on you financially right now you probably don't need life insurance right now.
You are taking a chance that you'll need that coverage in the future and that you won't qualify for it. You'll have to decide if that is a risk you want to take. We can't really afford to insure against every possible future outcome so you'll have to rank your priorities and see where having life insurance for future needs falls along with your other financial expenditures.
A rule of thumb:
When you select TERM insurance, you are RENTING the coverage.
When select a whole life policy, your are BUYING the coverage.
You have to decide what type of coverage is right for you.
Keep in mind that TERM rates increase annually or in increments (5 year, 10 year, 20 year, 30 year) and at some point, the rates will be higher than you will want to pay…so, you go without it.
Most folks get the idea of "I'll buy term and invest the difference" yet they fail to "invest the difference" and as they get older, with the increase in the term insurance, they have LESS to invest.
With whole life insurance, the payments will stay the same for the entire period. Not a bad deal for youth as it keeps the cost of life insurance low, and protects their "insurability" in the future.
Good luck and I hope this helps.
I'll tell you why *I* buy it. Because saving & investing takes time to build up assets. And I have small children. If I should kick off tomorrow, I want my husband to be able to afford a nanny and housekeeper, and not have to worry about how to pay for them.
Insurance is for a possible SHORT TERM need. Investing is for the long term. Someone once told me, buy insurance like you're going to die tomorrow, but invest/save like you're going to live forever. Between the two, you should be able to retire without having to eat cat food.
Just like any other financial tool, you need to SET THE GOAL, and then select the tool – or combination of tools – which meet your needs, at the best price.