If you’re like most people, you have a vague idea about what life insurance entails, but you’ve never really thought seriously about buying it for yourself or for your family. However, there’s no question that purchasing life insurance is one of the best things you can do to secure your family’s future, and that you should really consider it. Most people buy life insurance for one good reason: to support the people who depend on your income in case you die and that income is taken away. All the other reasons people might give you for purchasing a life insurance policy are just noise. You need life insurance, if anyone is relying on your income to pay bills, buy food and pay mortgage.
You want insurance to cover all the basic needs for your family after your death, so it is important to learn more about group insurance options. The kind of insurance you should buy depends on many factors. “Term life” insurance, for example, is plain and simple and so cheap that you can afford to incorporate it into your family’s budget and savings. Other forms of coverage are generally cash-valued and combine savings with investment. Each payment you make on a monthly or yearly basis goes toward buying insurance as well as buying stocks or bonds. But with a cash-value policy you can get your hands on your money either by canceling the policy or withdrawing cash against it.
The amount of life insurance you need is relatively easy to determine – all you have to do is use a generally accepted rule of thumb which says married couples with two children need eight times their combined annual income. This is enough to cover most expenses including college for your kids. However, the future is so filled with uncertainty that this simple rule requires modification in some areas. Many websites on the internet will estimate your insurance needs based on the information you supply. Insurance agents will also guide you through this if you ask them. Again, any policy on your family would help cover the costs that are needed the most. In all these cases, buying an insurance policy is crucial because family protection always comes first.
When things are uncertain in your life, when you’re going through a transitional period in your life or in your work, or when the unemployment rate is high as it is today, it is wiser to opt for an insurance policy than to not do so. Also make sure that your insurance policy is convertible. Sometimes, term insurance policy can be changed to universal life policy if needed. In essence, with life insurance, your family will have the peace of mind knowing that they can live on for the rest of their life. Plan for your future and save for your family with a life insurance policy – the peace of mind alone that it offers is worth far more than the money you’ll end up spending on it.