Ben Todd | Apr 16, 2017 | 3
Is Life Insurance Worth It? What Should I Do And Why?
If you are considering buying life insurance, then you should have a quick read of this article. It holds snippets of information that will help you as you search for a good life insurance quote. This article is ideal for people who have never bought life insurance before. It gives a few details that apply to most types of life insurance. It also reminds you of things to consider when buying life insurance, such as insuring the primary income earner and the stay-at-home parent on the same policy. Unless you are immortal like Keanu Reeves, then you should at least consider insuring your life.
Do You Actually Need Life Insurance?
The same could be said for most forms of insurance. Do you really need home insurance? Do you really need mortgage repayment insurance? If you feel that your loved ones will struggle financially if you were to pass away suddenly, then life insurance is something you should consider.
If you feel that your loved ones will not suffer financially if you pass away, then consider an investment life insurance policy. These are the types of life insurance policy that will return your premiums to you when you hit a certain age. The premiums, along with any profits, are most often returned to the insured person he or she is 65 or 70 years old. In this case, a life insurance policy is going to be even more advantageous than a savings account.
You Should Always Be Honest About Your Medical History
You need to make doubly sure that you tell your insurer about all of your medical history. If you miss certain things out, then you may not be properly covered. There is a chance that the insurance company will not pay your claim if you miss things out whilst creating your life insurance policy. Some insurance companies may ask for permission to see your medical records prior to covering you. Other life insurance companies may ask you to undergo a medical screening prior to covering you, but this normally only happens if you are buying health insurance and life insurance on the same policy.
One Policy May Cover More Than One Person
If your spouse or yourself decide to buy life insurance, then a single insurance policy may cover you and your spouse (two people). Upon the death of one of the couple, the other person will receive the settlement amount. In this case, the life insurance cover would cease once one of the couple has passed on. If there are children in the picture, it is quite common for a couple to have two separate life insurance policies. That means that if one partner dies, the other one is still covered. This will mean that any children will not be left in a financially unstable situation if both parents pass away.
Maybe It Is Time To Stop Smoking
Public opinion is definitely against smokers in the developed world. Smokers are not allowed to smoke indoors and are often discriminated against. This trend has continued into the world of life and health insurance. People who smoke should expect to pay bigger health and life insurance premiums.
One could argue that even if smoking isn’t the biggest cause of health problems, that people who smoke tend to neglect other elements of their health, such as getting enough exercise and having a varied diet. Even if smoking isn’t the demon that it is made out to be (since people have lived to over 100 despite being smokers), it is possible that people who smoke should be discriminated against when it comes to life insurance because being a smoker is a signal that the insured person doesn’t take good care of his or herself.
Shopping Around Will Help You Find A Cheaper Life Insurance Quote
The insurance industry is a very competitive one. This is why it is so heavily advertised online, and why insurance companies are willing to do just about anything to get your business. Some life insurance premiums vary wildly and it is often the ones that advertise the least that are able to offer you the best deal. So, you really need to hunt around to find a cheap insurance quote. Interest rates have also put many insurance firms under pressure, which has resulted in some people waiting before taking out life insurance. This is another reason why life insurance companies are becoming even more competitive.
Ask Yourself If You Are Already Covered
You may have a policy already in place from your place of work. Some of them insure you against accidental death, so it would be silly to cover yourself twice. Some mortgages also come with life insurance, so you should check to see if you are already covered before you buy life insurance.
Things To Consider If You Have Never Bought Life Insurance Before
Life insurance is a form of insurance that will pay out a settlement amount if the insured person expires within the boundaries of the policy. Some life insurance policies will pay the insured person a settlement if he or she reaches a certain age.
If you already have a lot of investments and savings, then you may not need life insurance. Life insurance is more of a safety net to help make sure that your loved ones do not suffer financially in your absence. Some people invest in a life insurance policy that pays them when they hit a certain age. People do this so that their loved ones do not suffer if the insured person suffers a premature death, and also as a way of topping up their income after they have reached retirement age.
If you and your partner wish to insure your lives, then it is quite common for a couple to insure their lives under the same policy. Sometimes, insuring two people under one policy is cheaper. The only downside is that once one partner passes away the life insurance cover finishes, then the remaining partner would receive the settlement, but would no longer be insured.
Is There More Than One Bread Winner In The House?
Ask yourself if the primary income earner should be the only one to be insured. Many couples have children, and sometimes there is a primary income earner and a stay-at-home parent. It is common sense to insure the life of the primary income earner, but it is also a good idea to insure the life of the stay-at-home parent too. The stay-at-home parent is responsible for many things that would otherwise cost a lot of money.
Childcare is expensive, and if the primary income earner works a lot of hours then childcare is going to become very expensive. The stay-at-home parent is often an unpaid cleaner too, which means housekeeping services would need to be purchased if the stay-at-home parent passes away. Under these circumstances, it may be a good idea to insure the life of both people under one policy. Doing that would be far better than leaving one partner uninsured.
How Much Does Each Person Bring Into The House?
When considering life insurance you should think about how much money you bring into the home. If you are the only person earning an income, then you may need to find an insurance policy that will cover your outstanding debt, mortgage payments and household bills in your absence. Insuring your life to cover these bills is probably going to push the price of your life insurance premiums up, so you will also have to consider how much you can afford to spend on premiums every month.
Where To Find Life Insurance
Insurance brokers are sometimes able to find you a very good life insurance policy. An online search may find you a very cheap insurance premium quote, but this may not be the best insurance policy for you. An insurance broker is able to explain all about life insurance and then help you create an insurance policy that is tailored to your needs. An insurance broker may then find you the best possible rate for your customized policy.
Getting Life Insurance Online
There are lots of life insurance policies that you may buy online. There are insurance policies online that will suit almost anybody, and using a comparison site allows people to search for the lowest rate. Shopping around is one of the best ways to find a low premium rate, and comparison sites have made shopping around a lot easier than it has ever been before.
You may prefer buying online because you do not like the idea of being pressure-sold into something with an offline broker. That is fair enough, but if you make a pledge to see and talk to at least three brokers before making your decision, then you reduce your chances of buying something because you were pressured. Plus, if you feel you were pushed into something, then cancel it and/or contact a local authority if you feel something was “off” about your experience.
Conclusion – It Is A Long And Tough Decision That Requires Time
If you are shopping for life insurance, then consult reputable sources for your information. Even though some information you find online is correct, you can never be sure of its accuracy. Mix up your search between online and offline websites and brokers. Do not rush your research or your search. There is no rush to buy life insurance, and the more you search and dig deep into the subject, the more likely you are to find a customized, suitable, and bargain policy.