Life insurance is typically regarded as a morbid topic that’s uncomfortable for families to broach. In reality, it’s a very practical and positive thing to do for yourself and your loved ones.
How stable would your family be if you lost your job or passed away? The time to consider this is now. Here are a few points to bear in mind as you explore your options for life insurance.
Life insurance can benefit the living – including you.
It’s a common misconception that one has to die in order for life insurance to be useful. It actually depends on the type of policy you choose, so life insurance comparison is absolutely necessary to understanding this better.
For example, term life insurance covers you for a specific number of years. If you survive the term, your coverage is over.
A permanent life insurance policy, on the other hand, is a valuable investment. You pay more, but the money you pay in can be an asset you can draw from when you need it. The money you pay can serve as:
- Supplemental retirement income
- Collateral on loans
- Tax advantages
- College tuition
And more, all of which is dependent on your specific policy.
There are different kinds of permanent life insurance policies.
If you’re someone who is likely to miss a monthly premium payment at some point, a universal life insurance policy may be right for you. A universal only demands that you meet an annual minimum in payments.
Survivorship policies may be a good option for couples. With these, money is paid to a beneficiary only after both you and your partner have passed. You can save money by doubling up here.
Variable life insurance can be pricey, but it’s paid for out of an investment account. If you do well, your value will increase and your premiums will be paid for out of the account. You’re also not locked into a particular premium payment here; they’re quite adjustable.
Arguably the most complicated type of policy, variable universal permanent life insurance combines the functionality and flexibility of universal policies with the investment side of variables.
Life insurance helps your family recover.
We don’t often consider what will happen after we die; all of that seems like something we can put off until another day, when we’re sick or elderly. But the death of a loved one is very complicated and traumatic for those people who have to deal with funeral arrangements, bills, debts, taxes, and other annoyances while they’re in great emotional distress.
A permanent life insurance policy can be used to pay for funeral services, estate taxes, your children’s education, and is often used to replace your income after you go.
Your family may miss you the most, but this suffering is often compounded by a drastic change in lifestyle. Ensuring that life will go on the best it can is a parting gift that will make the transition a little bit easier. And until then, speaking to an expert can help you figure out how to make your life insurance policy a valuable asset – while you’re still around.