Life Insurance May Make Better Budget Sense Than You Think
Insurance is one of those necessary evils that people feel they must have, but resent paying for – especially during tough economic times. The law demands we have automotive insurance and most mortgages require a homeowner’s policy. With the current recession, the coverage that tends to get the ax first in the cost-cutting process is health insurance. All too often that happens against your will if your health benefits are tied to your job and you get laid off.
Given all these factors, most people don’t even consider life insurance an option. That may be a mistake. There are a number of good reasons to have a life insurance policy in tough economic times, regardless of how young and healthy you may be.
- Young people are exactly the ones who should be taking out life insurance policies. You’ll get lower premiums, which you may be able to lock in until age 65. That means a significant long-term savings. Additionally, you’ll easily qualify if you are young, healthy, and have no pre-existing medical conditions.
- No one likes to think about it, but even the young can die. If a life insurance policy is in place, the benefit will help your heirs take care of your debts that might otherwise leave them struggling financially, or it could simply help to defray the exorbitant cost of burial in the United States.
- Life insurance policies also give the insured peace of mind that their major goals will be addressed in the event of their untimely death. With adequate benefits in place, the insured individual can be confident their children will be educated or their spouse will be financially secure.
- An affordable life insurance policy can also offer peace of mind to those who do not have health coverage. In the event of a catastrophic medical incident that results in death, you won’t be leaving your loved ones with the mountain of medical debt that inevitably piles up for the uninsured in the American health care system.
- Life-insurance policies can also be forward looking. Many newer policies are drawn up in such a way that later in life they can be converted to deliver long-term care benefits in the event that you become disabled in old age. This not only will spare your loved ones the cost of your care, but it will also give you greater control over your own destiny for the entirety of your life.
As with all insurance coverage, the most important thing is to do your research and to understand all the terms of any policy before signing on the dotted line. Remember that if you have multiple policies with one carrier, you generally get discounts on your premiums. Consider consolidating your homeowners, auto, and life insurance policies to maximize your coverage while minimizing your costs. Above all, don’t fall into the trap of thinking you’re too young to need life insurance. Now is the time to lock in the coverage and to make sure your loved ones are protected should the unthinkable occur.
This is a post by Chris Wilson who is an insurance editor. He writes about various insurance topics.
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