Saturday, November 4, 2023

Don't Wait Too Late for Life Insurance

If you're like me, you probably don't want to think too much about death and what happens after we die. We're young and hope to live a long life, so why plan for our deaths just now? And besides, it's expensive, complicated, and just feels irrelevant. But unfortunately, disasters happen, and people die way before their time; unfortunately too many people in my circles have been dealing with that lately. My friend, for example, lost her brother in law in a plane crash, and he left behind many children. Fortunately, he had a good life insurance policy, so my friend's sister doesn't need to worry about the finances now in addition to all the rest of the hell they're going through at the moment.  Life insurance is one of the most important financial decisions you can make for yourself and your loved ones. And I'm going to tell you why.

First of all, what is life insurance? Life insurance is a contract between you and an insurance company that pays out a lump sum of money to your beneficiaries if you die during the term of the policy. The money can be used for anything, such as paying off debts, covering funeral costs, or providing income for your family.

There are different types of life insurance, but the most common and affordable one is term life insurance. Term life insurance covers you for a specific period of time, usually 10, 20, or 30 years. You pay a fixed amount every month, and if you die within the term, your beneficiaries get the payout. If you outlive the term, the policy expires and you get nothing.

Why is term life insurance beneficial? Term life insurance is beneficial because it offers a lot of coverage for a low cost. You can get hundreds of thousands or even millions of dollars of coverage for a fraction of what you would pay for a permanent life insurance policy. Term life insurance is also flexible and simple. You can choose the amount and duration of coverage that suits your needs and budget. You don't have to worry about any cash value, investment options, or fees that come with permanent life insurance policies. 

How does term life insurance compare to regular life insurance? Regular life insurance is a broad term that usually refers to permanent life insurance policies, such as whole life or universal life. These policies cover you for your entire life, as long as you pay the premiums. They also have a cash value component that grows over time and can be accessed through loans or withdrawals.

While regular life insurance may sound appealing, it has some drawbacks. Regular life insurance is much more expensive than term life insurance. You may end up paying 10 times more for the same amount of coverage. Regular life insurance is also more complex and less transparent than term life insurance. You may not know how much of your premium goes to the cash value, how the cash value is invested, or what fees are charged by the insurance company.

You may wonder why someone would want term life insurance at all instead of a permanent life insurance policy, if it expires and you may get nothing out of it. However, that is what insurance is for. You don't want to have to use it, but you want it there just in case you do. Term life insurance, for example, might be a good idea to cover the time until your children are adults, because when they are children and rely on you financially, it is most important that you have a backup plan to support them financially in case the worst happens, but that becomes less of a need when your kids all move out and are able to support themselves.  

I wish I had known all this sooner. I waited too long to get life insurance, in large part because I didn't have money and said it could wait until I was older, and now I regret it. I was diagnosed with chronic health conditions a few years back, and since then, I have been denied coverage by every insurance company I applied to. They either rejected me outright or quoted me exorbitant rates that I couldn't afford. 

Now I'm worried about what will happen to my family if something happens to me. I don't have enough savings to leave them anything. I don't want them to struggle financially or emotionally after I'm gone. I wish I had bought term life insurance when I was younger and healthier. It would have given me peace of mind and security for my future.

Don't make the same mistake I did. If you don't have life insurance yet, get it today. Term life insurance is easy to buy online or through an agent. You can compare quotes from different companies and find the best deal for you. You can also use online calculators and tools to estimate how much coverage you need and how long you need it.

Life is unpredictable and precious. Don't take it for granted. Protect yourself and your loved ones with term life insurance.

Do you have insurance? What type? How did you decide to get that type? How old were you when you bought your policy?

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