Life insurance doesn’t have to burden your finances; almost anyone can afford it, regardless of their financial situation. With rates as low as $20 a month, you can be prepared for whatever the future has in store. If you’re a senior age 50 to 55, we suggest looking at life insurance plans as life is never as we expect it to be and it’s important that you don’t leave your family with expenses. A recent survey by InsuranceQuotes.com found that nearly 40 percent of Americans don’t have life insurance policies.
Why are so many Americans not investing in life insurance policies? While some find life insurance too expensive, others find it unnecessary. But, these opinions couldn’t be more wrong as life insurance is a must and it’s definitely affordable. If you’re still unsure if you should take out a life insurance plan, keep reading this article to learn about why you should have life insurance.
What is Life Insurance?
To get a better understanding of if you should get life insurance, first, you have to know how life insurance works and what it covers. Life insurance policies are contracts with insurance companies that they’ll give you a lump-sum payment also known as death benefits to your loved ones when you pass away. In return, you pay premium payments.
There are two main types of life insurance: term life insurance and whole life insurance. A really brief summary of them is that term life insurance gives you financial protection over a certain time period and whole life insurance provides lifetime insurance. Each type of life insurance has different premiums, with whole life insurance having the highest cost. We’ll further discuss the differences later on in this article.
Gives You Peace of Mind
No one likes to think about what happens to our families after we pass away. During our life, we work hard to be able to provide for our families, and thinking about them having to manage on their own is not a thought we like to have. With life insurance, your family will be taken care of even after your income is gone, regardless of if its to pay for final expenses like funeral costs or basic day-to-day needs.
Insurance needs are different from person to person, but by buying a life insurance policy with a value of ten to fifteen times your annual income, you can ensure that your family will be okay financially.
Life Insurance Policies For Less Than $20 a Month
We mentioned that one of the reasons people don’t buy life insurance plans is because they think they are too expensive. But, thinking into the future, not having life insurance will cost your family more money than it would have been to take out a policy. The cost of life insurance is determined by age and health, with health being the most important factor. You can save money on your life insurance by getting it when you are younger because the premiums will be less. Taking out life insurance in your twenties, if you aren’t a smoker and are in good health, can cost as little as $20 or less a month.
Types of Life Insurance
The price you pay for life insurance is determined by the type of policy you get. As mentioned before, there are two main types of life insurance policies—term life insurance and whole life insurance. With term life insurance, it’s usually sold with terms between 15 or 20 years and the premiums don’t increase over time. When the person dies the beneficiaries get the face value amount of the policy. If the policy ends before the person passes, no money is given. It’s also less expensive; costing 10 to 15 times less than whole life insurance.
Whole life insurance doesn’t expire over time, but it’s more expensive. With many whole life policies, there’s a “cash value” option that means the policy adds up to a cash value less than the face amount over time. The policyholder can cancel the plan and take the cash value when they choose to. An example is if the value adds up to $30,000 over years and the face value is $500,000, the policyholder can cash out the policy and take the $30,000. It’s important to mention that you can still get life insurance if you have a preexisting condition like diabetes, heart disease, cancer, mental health illnesses, cerebral palsy, etc.
Life Insurance Options
By investing in life insurance, you’re protecting your loved ones from financial burdens. There’s a life insurance option for everyone; all you have to do is research life insurance options online to find the best and cheapest life insurance options. Look at three to four options and compare the costs and coverages they offer before choosing the one that’s right for you.