Something wrong could happen to anyone, anyplace and anytime, that’s way we need life insurance to cover the cost in difficult time. Life insurance will protect financially from the loss of ability or any accident or die, for sure everyone is going to die, but life insurance is not predicting death. No one wants to deal with death, but a good plan will save the future as well.
We need to purchase life insurance as young as possible. The younger we are the cheaper it is and the option as well. There are two basic life insurance, permanent policy and term policy. Permanent policy will be last forever, and term policy will cover a short term debts, like a mortgages and replace your income if you should pass away before your children able to generate income.
However some insurance companies will not pay if you die by suicide, so check properly your policy before you sign any life insurance. It is recommended that read carefully the policy. Otherwise you will not get any benefit from your investment, especially if it is not included in the policy. It’s true many claim could not be paid if it is not written in the policy.
If you have family, kid would be benefited most, for your spouse perhaps will work if you die. Pay for what your love one will leave in future without any difficulty. Imagine if you die while you child on age of 5, they will need long help for their future, but perhaps your monthly investment around $50, your kids will get 200 thousand or even 300 thousand in cash.
Permanent or term policy?
Some people like term policy for their needs, because it doesn’t burn the cash flow. It’s true that permanent insurance less expensive if you are younger, however you may need paying more over the life of policy. It should be wise to consider any option, and depend to the need of your family.
Cost, quality and guarantees do not always correlate, read carefully the term and avoid make mistake. You really need to study the contract, make an illustration before you know anything about it. It is investing which give option in every choice you choose. This is an illustration, you’re on 30, had $250,000, if you don’t pay monthly you’ll save $60 when you pay it by year. Actually you will get choice in the contract, and study carefully before you decide.