Many people debate weather Life Insurance is really beneficial in the long run. I agree that having the insurance coverage is necessary for many reasons.
When a person passes on suddenly, the last thing you want to do is leave your loved ones stuck with a bunch of funeral costs as well as any unpaid bills by the deceased. If you are married with a family, I feel it is critical that you have some type of life coverage. You want to make sure your children are taken care of and that they have a roof over their head.
Many people are concerned with the high premiums that they have to pay possibly for a number of years. Some helpful advice, it is best to get life insurance when you are young and healthy. When you are young, life policies are fairly cheap and you have many options available as far as the amount of coverage you would like to have.
There are different types of life policies. Term insurance basically locks the insured in to a 5, 10, or 15-year policy at a fixed price with no option to earn any dividends or borrow money against the policy. Yes, term insurance can become quite expensive as you age. On the other hand, if you elect to take out a policy that earns dividends it may prove beneficial to your loved ones after your passing.
In general life insurance can become expensive as you get older. The company has certain limits and amounts that they are by law allowed to charge the customer. Some people may think life policies are a waste of money simply because they will never benefit from the proceeds.
Even policies that earn interest and dividends can cost hundreds of dollars per month. Think of it like this, if a person elects not to have insurance coverage they will probably not have any money saved when they die to cover their bills and expenses. As I said before, I believe life insurance is mandatory.
One situation that I would say life insurance isn’t necessary. If the person is very wealthy and has sufficient money in bank accounts to cover funeral costs and any outstanding unpaid bills at the time of death.
An example of how reasonable insurance premiums can be when you are young and healthy. A policy that provides $100,000 worth of coverage for a 40-year-old male costs roughly $22.00 per month. That is less than $70 every three months. Normally, insurance policies are billed quarterly. Even with term policies the customer has the option to convert the policy to permanent insurance with additional benefits.