Is Life Insurance Worth It?
Whether it be through stigma or simply avoiding the morbid thoughts associated with one's demise, many people put off researching the truths, pros and cons, and costs involved with life insurance. The reality is that the process is simple, quick, and easy if armed with the right knowledge and preparation.
We want to answer the questions you might have regarding the process of gaining life insurance coverage so you are better prepared to make an informed decision that could help to protect your family's future financial stability. Questions could include:
- Is Life Insurance really necessary?
- What is Term Life Insurance?
- What is Whole Life Insurance?
- What are the pros and cons of Term vs. Whole Life Insurance?
- Who is Life Insurance for?
Do I Really Need Life Insurance?
The argument in favor of life insurance is the direct financial benefit to your family in the event of your untimely passing. Life insurance provides peace of mind by helping to cover any outstanding debts, final expenses, and mounting bills. It can even serve as an income replacement for your financial dependents. Simply put, life insurance helps to mitigate the unknowns associated with the future.
Life insurance policies don't need to break the bank. Products like Term Life Insurance offer affordable life insurance rates with customizable coverage amounts and term lengths to help fit your budget. Other products, like Whole Life Insurance, offer Living Benefits and a Cash Value benefit that can accumulate value over time.
Which Life Insurance Policy Is Right for Me?
There are many different types of life insurance, all of which offer different benefits, costs, coverages, and terms. Choosing the right fit for you and your loved ones is a personal matter, but the right information will help you make the best decision.
The two most popular forms of life insurance are Term Life Insurance and Whole Life Insurance. Comparing Term vs. Whole Life Insurance can help you see which type might be best for your needs. Term Life Insurance is simple and affordable, and you will have varying term lengths and coverage amounts to choose from. On the downside, the limited term lengths can sway potential consumers away from Term Life Insurance in favor of more permanent options with life-long coverage.
The pros of Whole Life Insurance include having access to a cash value account, the opportunity for the policy to be borrowed against or used to write off against estate taxes, and the fact that the policy will last for the consumer’s entire lifetime at fixed rates/premiums. Cons of Whole Life include the higher rates when compared to Term Life Insurance.
Click here for more information on the policies available through AIG Direct and their varying benefits.
Who Should Consider Life Insurance?
The benefits of life insurance are something that everyone should consider. People generally don't start planning for life insurance until they advance in age, but there are legitimate benefits to exploring life insurance options at a younger age.
Life insurance rates increase as you age, so securing a policy at an early age can be a cost-effective way to both obtain insurability and plan for the future.
Individuals with underlying health conditions, family histories of health issues, or those undergoing life changes such as buying a house, starting a family, or changing careers should also consider the benefits of life insurance as a means of protecting themselves and their family through the uncertainties of the future.
There are also numerous options available for insuring the youth in your family such as Child Rider additions to your policy or Juvenile Life Insurance policies like the Gerber Grow-Up Plan.
Finding the Value in Life Insurance
Every life insurance policy is different. Some offer more flexibility than others, like Term Life Insurance, while some include more permanent solutions.The bottom line is there exists a policy suitable for each and every individual or family, and finding the right fit for you is the number one priority. If you still have questions that remain unanswered, visit our series of life insurance basics articles, where you can explore finding the right life insurance policy for you, how life insurance works, what to expect when you apply for life insurance, and reasons to buy life insurance.