Life insurance can be a confusing subject for some people. If you’ve never had life insurance but you’re wondering whether you need it, this is the post for you. Here, we’ll talk about everything to do with life insurance so you can decide if it’s the right decision to make for you. If you need life insurance but don’t get a policy, you could end up leaving the people you love in the lurch. If you don’t need life insurance but you get it anyway, you could be wasting your time. Here’s everything you need to know so you can have total peace of mind:
To put it really simply; if you have a family, a wife, or somebody who is dependant on you, then you should probably take out some life insurance. How would your family cope if you weren’t around anymore? I bet they’d find it even more difficult if they had no money to cover the life they’re used to.
What is Life Insurance?
Life insurance can either give the people dependant on you a lump sum of money, or a regular payment if you die. There’s term life insurance, which runs for 5-25 years. This policy will only pay out if you die during the term period.
A whole life policy will pay out no matter when you die, as long as you’ve kept up with all of the necessary payments.
If you become ill or disabled, you won’t be covered by your life insurance policy. You’re only covered by this type of insurance if you die. However, you really need to do your research and find out what’s specific to your own policy. Some policies will refuse to pay out if you died from drug or alcohol abuse. You’ll definitely need to pay more money if you always take part in risky sports, explain NobleOak.
Also, you must take care when taking out a policy if you’re already poorly. The policy may state that you can’t take get any money if you die from that illness.
Can’t You Just Rely on the State?
The short answer, is no. Your family probably won’t get nearly as much as you expect them to if you die. They’ll always get more from an insurance policy you’ve taken out and paid for.
You Probably Don’t Need Life Insurance When…
Your partner earns enough money for them to live on in the event of your death. If you’re single and nobody depends on you, you don’t really need insurance either. You might consider saving some money for your funeral, however. There are a lot of options in funeral pre-arrangement plans you can look into which might include selecting burial spots or even cremation services. Contact a funeral home to learn more about the services that can be incorporated in your funeral plan.
Life insurance may cost you just a few pence a day, and it’s always good value for money if you’re young and healthy. In fact, you don’t even need to be young for it to be good value – just healthy! I hope this guide has given you all of the information you need to decide if this is right for you. I wish you a happy life!
