Life Insurance Protects Your Family
People who are young and healthy rarely think about their death. But when you’re young and healthy is the perfect time to plan for your death. You can pass away at any time or age, and you might have loved ones who are dependent on your financial support. Even if your spouse provides financially for the family, major expenses such as a college education may be impacted by your death. Life insurance helps you provide for your family after you pass away.
Several types of life insurance are available, but two of the main options are universal and term coverage. Universal coverage remains active as long as you pay your premium. And it can also gain cash value over time. You can use this cash to buy investments, plan for retirement, and more. A portion of the premium payments are applied to the cash account. This means the premium may be more expensive than on other policies. Term insurance is another option. It expires on a pre-determined date, with term lengths that are generally 15, 20 and 30 years.
There are instances in which proceeds will not be paid. You also have to choose how much your beneficiaries will receive upon your death. It helps to determine about how much your family will need to replace your income. Will they use the money for monthly financial support? Will they use it to pay large debts? Take everything into consideration.
If you have a family that depends on your income, now is a good time to set up life insurance. Doing this means you’ll provide your loved ones with financial security when you pass away.