Life Insurance 101
This is a sponsored post – all opinions are my own.
As I get older the importance of adequate and appropriate life insurance becomes more and more apparent. My husband and I have both recently lost our fathers – losing them so close to one another has been very hard. But imagine how much harder it could be if life insurance were not available? Funeral expenses are rough – what may have seemed like plenty of life insurance years ago will now barely cover a funeral. If you have young children or grandchildren that you want to help financially, then you need even that much more.
One thing to note of importance – the sooner you purchase life insurance, the less expensive it will be. You can certainly get life insurance as you age but if you wait until then it can become cost prohibitive. This is definitely not something you should procrastinate about. You need to invest in life insurance before you think you will ever need it… You need that contingency plan; your loved ones do not need to worry about finances when they are grieving your loss; give your family peace of mind…
Options include whole life (permanent) and term life. Term life is very simple – If I were to die today (for example), my family would receive a payout of $200,000. It is simple to understand and a very popular option. Whole life policies pay out at death as long as you keep paying premiums until that point in time. They also have a cash value which some may consider to be a savings or investment.
Considerations for how much life insurance to get include:
- how much debt do you have
- what are your annual expenses
- can your spouse survive with a livable salary or do you need to consider that
- do you have special needs dependents
- any other considerations that apply to your specific circumstances
For us we need to place a great deal of weight on special needs. We have special needs children who will most likely need some sort of assistance for the rest of their lives. The state will only help so much. We worry every day about what will happen if we were gone but financially we can at least prepare for.
Then of course there is reverse life insurance – perhaps that would be best for your particular set of circumstances? Every person needs to evaluate for themselves and make an informed decision.