Three biggest concerns about life insurancePosted On March 20, 2016
#1 It’s too expensive
Most people, for some unknown reason, believe life insurance is too expensive. The ironic part is, after a loved one passes away with debt and no life insurance, the premiums that could have been paid seem insignificant. Life insurance has actually been going down in cost annually for many years now. Longer life spans due to healthier lifestyles, advances in medicine, and mitigating risk factors have all led to people living longer. Coupled with better actuarial tables (life expectancy statistics), longer life spans means lower premiums. Today is always the cheapest time to by life insurance.
#2 How much life insurance do I need?
Ideally, you should have enough life insurance to pay off all your debts, and last expenses. Additionally, you may need more life insurance to provide an income to your surviving spouse and dependent children. Some people also want to leave money behind for grandchildren, favorite charities, and special causes. There are different types of policies, used alone, or in combination with each other, that can solve all of these problems.
#3 I have life insurance through my employer’s group benefits plan. Why do I need a personal policy?
Group life insurance coverage is a benefit of working for that particular employer. In today’s world people change careers and employers multiple times, and when you leave benefits behind, it’s not guaranteed your next employer will have benefits. If you’ve had, or currently experience a health issue you may not qualify to join the plan as a late applicant. Sound financial planning requires you to have a foundation of personal life insurance that you own and control, no matter your employment status. A personal policy will protect you and your family immediately, and if there are group life benefits in force at the time of your death, so much the better.