Life Insurance

Why You Should Have Life Insurance

You have to consider how your family will survive once you’re gone. You don’t know when you’ll die, but it can happen at any time. That’s why you need to prepare for your death now so your family can live comfortably when you’re gone. Life insurance is a convenient and common way to accomplish this goal.

Life insurance pays benefits to your beneficiary when you pass away. You need to name a beneficiary, and learn under what circumstances will they receive the benefit. You also have to determine how much insurance you want to purchase. The higher the amount, the higher the premium will cost. Your age, health, and lifestyle also affect the cost.

Term life policies can stay active for up to 30 years. After that period you can possibly get another policy. But whole life and universal life policies don’t expire, and provide lifelong coverage. Some policies also have a cash accrual feature that accumulate money in an interest-bearing account.

When you pass away, your beneficiary will file a claim for the benefits. This money can help cover burial expenses or medical bills. Any remaining funds help your loved ones financially. They can pay debts, save the money, or use it in any way they see fit. Some families invest the money to pay for a child’s education.