Have you ever wondered if it’s necessary for you to buy a life insurance policy? If you have, then the answer is an absolute YES! Having life insurance is very important to ensure a sense of security and to give your family the protection they deserve. In making this choice you’ll benefit greatly by getting the right life insurance policy for your needs; you’llsave money in the process; and having the right kind of coverage can give you incredible peace of mind.It also helps cover financial obligations such as high credit card debt and/or your mortgage.
Life insurance death benefits are also exempt from federal taxation.
You can choose between a whole life insurance policy, which provides lifelong protection, and a term life insurance policy, which is set up for a specific number of years. Before you buy a policy you need to establish your need,ask yourself if you'll qualify and decide which policy you would benefit the most from.
Weighing the pros and cons of choosing one over the other will help you in selecting the insurance that best suits your personal situation.Although it benefits more to buy a life insurance policy when young because the premiums are downright cheap, it is never too late.
Term Life Insurance
Term life insurance covers the policyholder for a fixed period of time. In the event of thepolicyholder’s death, the insurance company pays the face amount of the policy to the beneficiary. The premiums paid are used to cover the cost of the insurance protection and, unless renewed, the coverage ends with the term of the policy.Because there may be less likelihood of a claim, premiums for a term life insurance policy tend to be lower.
Whole Life Insurance
Whole life insurancecombines life insurance with an investment component and, because you are paying not only for insurance but also for the investment portion, it tends to be more expensive. Whole life insurance policies build cash value that you can borrow against. A whole life policy also provides death coverage.
Tips to Save Money on Your Life Insurance Policy
Whether you buy an insurance policy to secure the future of your family or to save money for your retirement, here are a few tips to help you make the right choice:
• Shop before buying a policy. Different insurance companies charge different premiums for the same policy. Spend time on your decision and choose the policy that best suits your needs.
• Understand your requirements.Understand your financial responsibilities in terms of needs in order to secure the future of your family in case you pass away.
• Pay your premiums annually. It may sound more feasible to make monthly or quarterly payments, but you may end up paying more as you will be charged an installment fee in addition to the premium.
• Stay healthy. The healthier you are, the easier it is to get a life insurance policy with a lower premium.
• Buy your life insurance policy from a financially strong company.Reputation and past history makes a big difference.
• Do your homework. Get help from someone with knowledge on the subject.
Remember if you are faced with the question, “Do I need a life insurance policy?”; the answer is a resounding,“YES! You do!”
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James Cruz is the Owner and Insurance Advisor of Anaheim based JCruz Insurance. He provides the most comprehensive and tailored advice on insurance policies for each of his clients, specializing in Home Insurance, Life Insurance and Car Insurance, which is sure to keep your family financially stable and secure.
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