• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

6 Things Everyone Should Know About Life Insurance

By Enero Febrero

insurance signLife insurance is a means of protecting your loved ones from unforeseen financial difficulties if something should happen to you. In essence, it provides financial security for your family in the event of your untimely demise.

Your family’s long-term financial needs and objectives determine coverage requirements, so here are several quick-reference items to consider before choosing a life insurance policy:

Investment alternative

Insurance is a crucial part of your long-term financial planning. However, some policyholders also consider it as an investment. This is because whole life policies offer a return on maturity.

Coverage amount

Your priorities and your lifestyle play a crucial role in determining your coverage value. Alongside your liabilities, you must also consider your immediate needs, inflation, and living standard. It will help you to also identify the coverage value that’s sufficient to sustain your household financially if you die prematurely.

Policy tenure

You must consider the length of your earning years when choosing the tenure of your life insurance policy. For example, it is usually not worth to carry coverage beyond the age when the last of your children have left the nest and are supporting themselves.

Coverage options

A term insurance premiums are typically less expensive than whole life plans because, unlike whole life plans, a term plan doesn’t yield any maturity benefit. Term plans are your best option when you want a high coverage for a low premium.

Claim procedure

In order to ensure any claim is executed as quickly as possible, be sure you understand the claim procedure so you can explain it to your beneficiary.

Death and maturity benefits

Life insurance policies can have two separate components: the death benefit and the maturity benefit. The death benefit is a lump sum payment made to the beneficiaries of a plan when the policyholder passes away within the tenure of the policy. Whole life policies also offer a maturity benefit; this is the amount paid to the policyholder when the policy matures.

Conclusion

Consider life insurance to be a good friend that stands by you throughout your life. Remember, the primary objective of any insurance policy is to offset any financial difficulties that would otherwise be experienced by your family in your absence.

Photo Credit: Steve Snodgrass

Leave a Comment April 5, 2019

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Polls

What do you think is the smartest career decision for young people today?

View Results

Loading ... Loading ...

Recent Posts

  • How to Get Fast Approval on Installment Loans
  • Should You Consider A Pre-Settlement Loan In a Personal Injury Case?
  • What Barfing Out of a Bus Window Teaches Us About Managing Money
  • 7 High-Paying Tech Jobs That Desperately Need Women
  • 9 Important Strategies to Help You Manage Financial Risks
  • Black Coffee: Parasites and Leeches
  • Responsible Casino and Gambling Tips: How to Stay Within Your Budget
  • Starting a Side Hustle? Ask Yourself These Questions
  • Grandfather Says: A Chicken Run for the Henhouse
  • 6 Basic Steps to Help You Achieve Financial Freedom

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 30,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. 25 Examples of Shrinkflation That No Longer Fool Consumers
  2. 2. The 10 Worst Things I Ever Bought
  3. 3. 7 Perplexing Money Questions Without a Good Answer
  4. 4. My Cola Taste Test: Is Coke Really Better Than Pepsi?
  5. 5. The Real Secret to Becoming Rich as a King
  6. 6. Planning a Wedding? Here Are 9 Ways to Ensure You’ll Pay Too Much
  7. 7. The Big Secret the Banking Industry Doesn’t Want You to Know
  8. 8. 5 Things Nobody Tells You About Being Poor — for Good Reason
  9. 9. A Simple Test to Know If It’s Better to Rent or Buy a Home
  10. 10. 4 Good Reasons Why Some Quarters Are Painted Red

All-Time Most Popular:

  1. 1. 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending You the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2021 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

© Len Penzo dot Com 2008–2021