Life Insurance is for Older People… And Also You While almost everyone knows what life insurance is, a lot of people tend to assume that taking out a life insurance policy is something you do when you’re older and more established. Or if you’re one of those extremely predictable criminals in classic detective novels who take out massive life insurance policies on people they plan to get rid of. Hopefully your interest is in the former, in which case you should keep reading to understand why you need to know about life insurance policies no matter what your age or situation.
Think about it It’s somewhat ironic to assume that older people are the ones who benefit the most from life insurance policies. Obviously, very old people might deal with the details of life insurance more since the likelihood of them passing away is higher than normal. But let’s not forget that older individuals have generally been saving for retirement and are more established financially. So while a life insurance policy would definitely help in the event of an elderly person’s sudden demise, their spouse or dependents would have probably been alright without it. It’s actually the younger people, the recently graduated, recently married, recently employed, recently had a child, recently refused to read about life insurance because they thought it didn’t apply to them, sort of people who have the most to lose by not signing up for life insurance. Never forget that families and couples who are just starting out benefit the most from this added security.
There are options There are different types of life insurance, some of which have benefits that increase if you sign up sooner. The two major types of life insurance are called whole and term. Whole life insurance comes with a bunch of added benefits. For instance, it pays dividends (which can be used to reduce the premium), has a tax-free cash account that builds up within it, and can be configured to allow people with terminal illnesses to access some of the money within the account. On the other hand, term life health insurance has no
added benefits and only one way to unlock the money: your death. Term life insurance is a good idea when you want to pay as little as possible and invest the remaining money yourself. However, it’s important to know that while payments for whole life insurance stay level until you pass peacefully away, term life payments only stay the same for a predetermined number of years, at which point the policy either terminates or the premiums begin to increase.
Conversion is possible The plus side to being educated about life insurance is that you are aware of certain ways to make it best fit your needs. For instance, you should know that most term life insurance policies can be converted into whole life plans quite easily. That way, you can take advantage of the lower premiums of term life until you can afford the higher payments associated with whole life in order to reap the benefits. The morale of this story that you should learn about life insurance now, because there’s never a time when being signed up with the right policy won’t benefit you. So take some responsibility and start to get educated about how to receive things like affordable life and health insurance. And then you can enjoy complete peace of mind the next time your friends invite you to go rock climbing in Southern Utah. Because with proper life insurance, your family will be taken care of no matter what happens. Photo Insurance: Sasquatch I, Alan Cleaver,