The Perfect Time For You To Buy Life Insurance
Life insurance is actually for individuals with children; individuals with disabled siblings or destitute parents who depend on them for financial support; individuals with husbands and wives that do not work; and individuals who are married, do not have kids and like to give their partner the financial freedom to mourn. In the event you die, individuals you’ve listed as beneficiaries in the insurance policy get some money. There are 2 main types of life insurance:
Term insurance: You purchase this policy for a specific period of time, usually 10 to 30 years. You pay a monthly premium say $50, for $750,000 of coverage over 2 decades. Then, if you die during that term, the person you listed as the beneficiary of your policy gets that $750,000, tax-free. If you reside beyond twenty years, the insurance firm keeps your premiums and you don’t get anything.
Whole life insurance: You can actually keep this life insurance for your whole life if you want, not just for a certain term. Like term insurance, the insurance policy features a death benefit, however, there is an investment aspect to it too. You can borrow from the invested money while you are still alive and draw on it later in various ways too. Whole life costs a lot more and has sky-high recurring fees on the investments. You can do much better by buying some term insurance for $50 a month, then investing the additional $150 you would have spent on $200 whole-life premiums in some low-cost index mutual funds.
Again, you might not have to buy it. Your employer could offer a few for free, although it usually won’t cover over a year or two’s worth of salary. You may be able to purchase more, but in contrast to disability insurance, the deals in this case often are not that great and you could possibly do better by yourself. In case you already have a relationship with an insurance company then check in with them to find out if they provide a discount for bundling services.
Insurance agents oftentimes push whole life insurance or term life insurance policies simply because they get paid better commissions for selling these types of policies. But don’t forget what have been said and then stick to your need. If you are young and quite in good health, you must be able to get a million bucks worth of coverage for $50 per month. It’s good to purchase while you are still in good condition so that you can lock in these lower rates. But don’t even think about faking to be younger or healthier than you are. If an insurance provider finds out you lied, your whole policy will be void. Before you can get an insurance policy, the insurance provider will send an individual into your home to take your blood and have you pee in a cup. If they find anything even slightly odd, they are going to raise your rate first and then ask questions later. So you really do need to be in excellent health to get the most reasonable rate, just like the ones you see promoted in periodicals all the time.