The term ‘plan today for tomorrow’ has never been truer when it comes to life insurance. It is a somewhat morbid subject, to consider one’s own death, but quite necessary, especially if you have family.
Florida is an expensive place for insurance as you will probably already know, life insurance is no exception. Although the reason for higher life insurance premiums is that the population is generally older, and the insurers need to make their money back!
The reasons for getting life insurance are as varied as the types you can get. The main reasons are usually to replace your income, funeral expenses, paying off debts, medical bills or the mortgage upon your death. Although you don’t have to have life insurance it is something that a lot of people opt for.
Life insurance works pretty much the same as other insurances. You pay a premium for a policy which covers you in the event of your death. Your policy will then pay the people you specify an amount you specify.
Some types of life insurance also give the policy owner the right to “borrow” a portion of the cash value within a policy, or to receive an “accelerated death benefit” if you become terminally ill or require confinement in a long term care facility. This gives you a portion of your entitlement when you might need it most.
There are several compelling reasons why you should buy life insurance If you can afford it. The most important reason is to have enough money to provide for dependents such as young children, non-working spouses or elderly parents, should you die and be no longer able to provide for them.
Also, your survivors may need money to pay for the inevitable extra expenses that arise due to your death. Things like funeral expenses, bills and debts always come up in situations like these.
If you have no dependents or have adequate financial resources, you may not have a need to purchase life insurance. However, some people who do not “need” life insurance still purchase it anyway. This can be a means to leave money to a beneficiary or beneficiaries while minimizing their tax burden.
You don’t have to take a policy that involves an exam, but the ‘no exam’ policies tend to have higher premiums than the ones that do. If a medical exam isn’t a problem for you then it is definitely wise to have one. You will end up paying much less over the term than if you don’t.
Not all insurers are created equal. As well as checking the small print on your policy, it is also worth checking out the company itself. Check its history, finances, who owns it, and what they are like during a claim. Insurers are generally at their worst when you need money from them, so this is definitely something you should look at. Coping with a disaster is stressful enough without having to cope with a reluctant insurer.
