We live in economically uncertain times and finding financial security has become increasingly tough. Baby boomers have seen their life savings dwindle during the 2007 economic crash. Worldwide natural calamities and political upheavals have made life more fragile than ever. Thats why it is important now, more than ever, to consider buying a life insurance policy.
Life insurance is used to resolve the financial gap that would occur if an earning member of the family or a stay-at-home spouse were to die unexpectedly. The loss of income this would incur would have a severe impact on the familys financial status. For instance, if you died with outstanding loans or mortgages, the burden of paying off those loans would fall on your family. Calculating just how big a financial impact your death would have on your family is the key to life insurance planning.
1. Purchase life insurance for its numerous benefits
The first obvious reason to buy a life insurance policy is to protect your loved ones from a financial catastrophe. But life insurance has many more benefits you should consider:
- Your life insurance coverage can serve as a partial replacement of income to the surviving members of your family, whether it is a spouse, your children or elderly parents who depend on your income.
- Life insurance can pay for your funeral expenses. Burial costs and funeral services can be very expensive; death benefits can help offset those costs.
- Life insurance can be used to pay off estate taxes. If you have a large estate, your beneficiary could use the coverage to pay off estate taxes and avoid liquidation of assets.
- You can use your life insurance as an inheritance to pass on to your children or grandchildren so that they have a good start in life.
- You can use your life insurance policy to make a generous donation to your favorite charity. Many people designate proceeds to their church or a relief organization.
- If you are an elderly couple, death benefits from your life insurance policy can offer greater financial security to a surviving spouse. It can compensate and prevent a surviving partner from eating into retirement funds to pay for unexpected medical costs.
2. Purchase life insurance because it is totally affordable
This is the best time to purchase term life insurance. According to the Insurance Information Institute, from 1994 term life insurance premiums have plummeted 50 percent for standard-risk term insurance. A term life insurance policy is the most affordable life insurance policy.
Term life insurance is the most basic insurance policy you can buy and the simplest to understand. You pay a premium based on your age, sex, health, lifestyle, occupation and other factors that may be incorporated into a life insurance companys underwriting process. In return, your family will receive a predetermined death benefit after you die.
If you are young and in good health, theres a good chance youll be applicable for the best life insurance rates. Youll be able to lock in those rates for a long time if you take a level term life policy covering a 30-year term period.
3. Purchase life insurance because it is convenient.
Lets face it. Convenience plays a huge factor! Most of us lead very busy schedules and are driven by convenience. We need a process that is convenient and quick. Online life insurance quote providers offer just what you needconvenience. Such providers will take just a few moments of your time. You will be required to fill in an online questionnaire. Once this is submitted, you will instantly receive the best life insurance quotes from top-rated life insurance companies that suit your personal situation.
Most of us are tech-savvy these days and the introduction of an electronic life insurance application process is paperless and can be done in the convenience of your own home or office. With e-signature, the entire process can be done online without having to meet a life insurance agent.
Conclusion
Life insurance is a competitive business. The underwriting process differs from company to company. Some companies offer a more specialized look into unfavorable health conditions and therefore can offer you better premium rates than others. Since online life insurance quote providers have an expansive database that holds information from hundreds of life insurance companies, they can easily locate companies that favor your pre-existing health conditions or your smokers status.
Remember to insure a stay-at-home partner. Services like child care, cooking, laundry and cleaning are indispensable, but are often under-appreciated. Salary experts say that if the services of a stay-at-home spouse were counted, the average salary would easily add up to $150,000 a year. Think how much you would have to pay if your stay-at-home partner were to exit unexpectedly.
In these uncertain times, life insurance is not an option! Having a life insurance policy is the best way to secure your familys financial future.
About the Author:
About AccuQuote:
AccuQuote is a leader in providing term insurance quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of policies.
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