Is Life Insurance Worth It?
For someone first considering life insurance, the topic can seem daunting. It can be difficult to know where to start when researching the pros, cons, and costs of life insurance. However, with the right knowledge and preparation, the process can be simple, quick, and easy. It’s normal to have questions when considering life insurance, and at AIG Direct, we’re committed to helping you answer those questions.
Do I Really Need Life Insurance?
Life insurance can be a direct financial benefit to your family, providing peace of mind by helping to cover any outstanding debts, final expenses, and mounting bills. It can even serve as an income replacement for your financial dependents. Simply put, life insurance helps to mitigate the unknowns associated with the future.
Life insurance policies don't need to break the bank. Products like Term Life Insurance offer affordable life insurance rates with customizable coverage amounts and term lengths to help fit your budget. Other products, like Whole Life Insurance, offer a Cash Value benefit that can accumulate value over time.
Who Should Consider Life Insurance?
Life insurance is for everyone who has assets to preserve and loved ones to protect in case of the unexpected. This includes individuals undergoing life changes, such as buying a house, starting a family, or changing careers. Life insurance can also be helpful for those with outstanding debts; car loans, mortgage debts, and other types of debt that may transfer to a surviving relative after your death, but, with enough life insurance coverage, your loved one will have the ability to pay off the debts and move forward without financial burden. Whatever the reason, life insurance can protect the individual and their family through the uncertainties of the future.
However, some people might not benefit from life insurance. Life insurance primarily protects financial dependents, so if you have no dependents or your family members are all financially independent, life insurance might not make sense for you. Similarly, if you have no debt that could transfer to a loved one, life insurance might not be necessary for you. Ultimately, purchasing life insurance depends on individual circumstances, and as your situation changes, it’s important re-evaluate if life insurance is right for you.
At What Age Should I Buy Life Insurance?
There is no one right age to buy life insurance. Instead, the best way to determine if you need life insurance is to consider if your loved ones would be financially impacted if something happened to you today. If the answer is yes, now is the right time to purchase life insurance. Life insurance rates often increase as you age, so don’t wait to apply for a policy. Purchasing life insurance sooner rather than later can be a cost-effective way to plan for the future. This is because as we age, we are at higher risk for developing health problems, which, in turn, may raise your premiums. Therefore, buying a policy in your twenties and thirties can help you save in the long run with lower monthly costs for your coverage. Certain life events, like getting married or having a child, are also good indicators that it’s time to get life insurance, as life insurance can protect your spouse or future child from debts and costs that might occur in the event of your death.
Life insurance isn’t exclusive to adults either . If you have children, life insurance can help you protect them as well. Options such as Child Rider additions to your policy or Juvenile Life Insurance policies like the Gerber Grow-Up Plan cover your children and help protect your family from the unexpected.
How Do I Find the Right Life Insurance Policy for Me?
Every life insurance policy is different, but with research, you can determine the correct policy for you and your family . Some offer more flexibility than others, like Term Life Insurance, while some include more permanent solutions, like Whole Life Insurance. There is a life insurance policy suitable for each and every individual or family.
Life Insurance and Whole Life Insurance are the most popular policy types. Comparing Term vs. Whole Life Insurance can help you see which type might be best for your needs. Term Life Insurance is simple and affordable, and you can choose from varying term lengths and coverage amounts. However, the limited term lengths can be unappealing to those looking for life-long coverage. Whole Life Insurance, on the other hand, includes having access to a cash value account, the opportunity for the policy to be borrowed against or used to write off against estate taxes, and will last for the consumer’s entire lifetime at fixed rates/premiums. However, Whole Life insurance policies include the higher rates when compared to Term Life Insurance.
If you still have questions that remain unanswered, visit our series of life insurance basics articles, where you can explore how life insurance works, what to expect when you apply for life insurance, reasons to buy life insurance, and more. Or, speak with one of our licensed agents by calling (800)-294-4544.