Who Should Buy Life Insurance?
Life insurance can play an important role in ensuring financial security for your family. Life insurance pays beneficiaries a sum of money after the death of a policyholder. That money can be used to pay for different obligations and debts, like a mortgage of a child's education.
But who should buy life insurance and what are the benefits?
Who Benefits from Life Insurance Coverage?
If anyone relies on you for financial support, then you could benefit from buying life insurance. Friends, families, colleagues, or anyone that is considered a “dependent,” can get financial relief when you pass away. You can even name a charitable organization as a beneficiary if you so choose.
If any of the following apply to you, life insurance could benefit you:
- You have a spouse.
- You have a family.
- You’re a caregiver.
- You are in debt.
- You have children who plan on attending college or other higher education.
- You are a homeowner.
- You are a business owner
- You want to supplement employer-based life insurance coverage
How Does it Work?
Many life insurance policies come with a monthly premium to pay for a policy*.
Here are the two basic types of life insurance and their benefits:
- Term life insurance – You buy a policy for a set period of time, called a "term." A term can last anywhere from 1-30 years. If you die during that term, your beneficiaries will receive a payout from the life insurance company (assuming you've paid your premiums). If you outlive the term, your coverage generally ends.
- Permanent life insurance – Permanent life insurance provides coverage for your entire life. Unlike a term policy, a permanent life insurance policy acts as an investment vehicle and accumulates cash value over time. This allow you to borrow against the account or even cash it out before your death. However, these policies are typically more expensive than term policies.
Get a Free Quote
Who doesn’t want financial security in the face of uncertainty? If you’re considering buying life insurance for yourself and your loved ones, a licensed insurance agent can make buying insurance simple and convenient.
*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.