We’re all going to die someday. It’s a fact of life. Maybe not one we all care to spend our days thinking about, but still, it’s a good idea to give it some thought and be prepared. Life Insurance is a big part of that preparation. Truth be told, it’s a very selfless act to purchase a life insurance policy. You’re not thinking of yourself when you do this; you’re thinking of the loved ones who will be left behind with both memories of you and final expenses to pay.
You will probably leave some bills and debts unpaid. Most of us will. Relentless creditors won’t care that your gone. They still want what’s owed to them and will harass your loved ones to get it. Life insurance can help take care of that. Then, there are the expenses of the funeral and burial or cremation. Funeral cost thousands of dollars these days, and even if you choose to forgo a memorial service for yourself (put it in writing; your loved ones might not know or agree if you don’t have it stated in black and white), something still has to be done with the remains of your physical existence. Burial or cremation are both still expensive, so life insurance is a sure bet that your loved ones will be able to carry out your final wishes.
Before you purchase a policy, you need to decide which type of life insurance is right for you.
Term Life Insurance
Term life policies offer death benefits for a certain number of years. You choose the amount and the length of the policy. Should death occur within the term of the policy, benefits will be paid. Should you outlive the policy, well, no money will be seen. Still, term life is a fairly affordable option, though the premiums can fluctuate, especially for those with few or no dependents. Even without children or a spouse who depends on you, you will still probably have family or friends who will want to see to your final wishes and expenses. A term life policy can do this.
Whole Life Insurance
Whole life policies, while a bit more expensive than term policies (the premiums do remain the same though), are excellent for those with dependents or those who truly want to be prepared for death, no matter when it comes. Unlike term policies, whole life does not have an expiration date, therefore, as long as the premiums remain paid, the policy is always in effect no matter what age your death may occur. Whole life policies really give you and your loved ones that extra peace of mind. These policies also gain cash value, so should there ever be a need, you could borrow against it, though it is not advised to do this frivolously. Only borrow on your life insurance if it is an important reason and there is no other option.
There are other types of life insurance as well. Your best bet is to look at your needs, compare the options and choose the policy that best suits you and those you will leave behind.
