The future is never certain, so you need to plan ahead by purchasing insurance products. Life insurance is one vital part of keeping your loved ones comfortable after you die. To find out if you need life insurance, continue reading.
What Is Life Insurance?
Life insurance policies are a contract made between an insurance company and a policyholder. The contract guarantees the policyholder’s beneficiaries a death benefit payment when the insured individual dies. There are two primary types of life insurance, term life and permanent life. Term life insurance lasts for a set period, while permanent life insurance lasts for an entire lifetime.
Do Young People Need Life Insurance?
Nobody is immune to death, and accidents often take the lives of young people. If you are young and think you don’t need life insurance, think again. Having life insurance can help you replace your income if you have a family, making it a great option. Though, people who have few financial obligations may not need life insurance. Except, a small policy could help your family pay your funeral expenses if you do die. Without coverage, your loved ones will be left paying for your funeral out-of-pocket.
Do Older People Need Life Insurance?
If you are older than 40, life insurance is an important thing to consider. This is especially true for people who have a family. With life insurance, you can offer your loved ones peace of mind. A life insurance policy can be used to replace your income once you die or even pay for your children’s education. Without it, they may be left to figure it out on their own, which can be devastating.
What Can Life Insurance Payments Be Used For?
Life insurance proceeds can be used on anything. We suggest that you plan for your life insurance policy to be used for:
- Paying off debt
- Covering funeral expenses
- Creating a supplemental source of income for loved ones
- Helping children or grandchildren with education expenses
- Providing income replacement for your spouse
Do You Need Life Insurance Riders?
Life insurance riders add additional benefits to your policy. This makes your policy more valuable by expanding your options and coverage. For example, some life insurance plans offer riders that agree to cover long-term care if nursing home care becomes necessary. You can also find plans that offer riders that will pay your premiums if you are unable to work due to an injury or illness.