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Life Insurance

Life Insurance is a Smart Investment

Most people know life insurance is important. But they assume they can wait until later to get coverage. That’s not really a good idea. You can die at any time, no matter your age. And it gets harder to get coverage the older you get.

The Basics

Life insurance provides funds when the insured party dies. You decide on the amount of the payout and choose who will receive the funds. Many people choose a spouse or child as the beneficiary. It is also possible for the benefits to be paid to your estate.

There are several types of life insurance. Term life is the most simple, as it pays a fixed amount if the policyholder dies before the term expires. Whole life coverage does not include a term and can accrue cash value. Universal whole life also can also act as an investment vehicle.

Is Coverage for Everyone?

Most people need life insurance. Unless you’re very wealthy, then your family can benefit from this coverage. The type of coverage that’s best for you depends on several things. However, most people choose term life insurance. That’s a simple plan that expires, usually when the policyholder reaches 100 years old. Most people expect to die before then, so the term policy is the most popular. But if you live beyond that, your policy will expire and you’ll be without coverage.

Don’t delay getting life insurance. You never know what can happen. Plus, as mentioned earlier, it’s often more difficult to get coverage when you reach a certain age. You might even get turned down if you have an illness, such as high blood pressure.