Life insurance is a topic people are afraid of discussing since it sound a bit morbid but the truth is that we are all going to pass on one day or the other and having a life insurance in place ensures that our loved ones have the support they need to put us in a peaceful final resting place without killing themselves in the process. Having a life insurance also means that the once we live behind have some funds to help them out financially especially if you have a spouse and dependent kids.
Think how sad it’ll be if your kids and spouse are suffering not just the emotionally because you’re no longer with them but also financially as one earning member of the family is gone. So, when you think of the pros of life insurance, it’s hard not to want to get that protection for ourselves and our families. So, what are the things we need to consider before getting a life insurance?
Believe it not, your age is a major consideration in getting life insurance. Apart from cost, your age makes a significant impact on what insurance you get, coverage you get, when you get it, and many other things. If you are younger you might get a limited term insurance which is usually cheaper. You could do this knowing that you potentially have time on your hands to renew the insurance at later age to perhaps get a better deal.
Of course, life insurance gets more expensive and harder to get the older you are. Insurance underwriters and companies know that an older person has more morbidities and diseases and is more likely to die from old age earlier than a younger person. This fact makes the price of life insurance much more for older adults than younger people. So, take your age into consideration and determine if you want a short term life insurance or a life time insurance (whole life insurance). Regardless of which one you decide to get, as long as you have some life insurance, if an emergencies arises, your family will thank you for being proactive.
2.Who Are You Leaving Behind
If you have a large family and close family, then when you are no longer here, a lot of people will feel your absence. It also means a lot of people might be attending a service on your behalf as well as the fact that you will be leaving a lot of people who love you behind. If you have a lot of people to live behind then that should be reflected, when possible, in the amount of life insurance you purchase. If you have a spouse and kids, you will need more insurance than if you have no significant other and no kids, and no other relatives to think about.
So, depending on who you are leaving behind, and how many people close to you that depend on you, your life insurance should reflect that. That also goes to say that if you’re not leaving anyone behind even a distant relative, then you don’t need much, unless of course, you will the money to your favorite charity of something of that nature. In this case, you might of course, get an attorney involved to make sure your will is followed once you’re no longer here.
3.Cost of the Insurance
It’s all well and good to want the best insurance in town but we also have to be able to pay for it without going broke. The more the coverage, the costlier the insurance fees – pretty much as you’d expect. A coverage of 1 million dollars is not going to cost the same as 10 million dollars and neither will it cost the same as $400,000. So, determine what you can afford to pay monthly for your insurance and get an appropriate insurance. Yes, it will be nice to get the best and highest coverage you can, but it’s actually more important to have some sort of coverage.
Also check to see what your employers cover. Most employer do offer some life insurance and some will even offer you to pay more and get more life insurance. This insurance covered by your employer cannot and does not replace your private insurance as you have no control over what the company eventually does with the coverage. What if you’re fired tomorrow or leave the job? Then your insurance disappears too. So, yes, take the job insurance but also add on your private own insurance for your piece of mind.