Life insurance doesn’t directly benefit oneself. However, it is one of the most important things you need to set up for your household, especially if you’re the breadwinner. To arm yourself with more information, here is everything you need to know about life insurance coming from life settlement companies themselves:
It Can Help Support Your Family Even if You’re Gone. If you’re the breadwinner of your family, then you’re obligated to get life insurance. Without this, your family or dependents will suffer not only emotionally but also financially in case something untoward happens to you. But if you have life insurance, your family would at least avoid financial problems even if you aren’t around to support them anymore. This is a strategic tool that can cushion problems when the worst happens.
The Contract is Reliable. There’s no need to worry about the possibility of not being able to claim your insurance as this is stipulated in a contract between you and the life insurance company. This particular contract will specify everything the life insurance policy will provide. This will include the names of your beneficiaries, the terms and conditions, benefits, claims, and premiums. Everything is documented in black and white, and this contract is also what life settlement companies will look at in case you will think of selling your life insurance for one reason or another.
The Cost Will Depend on Your Age. Life insurance premiums can either go really high or very low. This will depend on the policy you have arranged with the insurance company, as well as your age. The younger you are, the cheaper the insurance premiums you have to pay. If you happen to be eyeing an insurance policy, it’s better to get it while you’re still young.
One other thing you need to know about insurance is that if you have lots of riders included in your insurance policy, then your premiums are higher. Moreover, the healthier you are, the lower premiums you have to pay. Your health status will depend on the health questions the insurer will ask you while you’re applying for life insurance. You will also need to undergo some medical examinations to check your overall health. The life insurance agent will also go through your family’s medical history. But what’s good about this is that insurance premiums are fixed until you reach a certain age. Life settlement companies like Q Life Settlements also take into account your age and premiums when you decide to sell your insurance.
Choose the Right Type of Insurance
There are many types of life insurance, and you need to familiarize yourself with them before getting one. Make sure that the type you select will suit your needs. Here are some of the basic types of life insurance you need to know about:
- Term Life Insurance. Term life insurance is a policy that you only get for a fixed number of years, hence the name term. Because of its limited duration, the quoted rates that insurance companies will offer are lower compared to a policy you will get for your entire life. Term life insurance runs for about 5,10, or 20 years.
- Whole Life Insurance. Whole life insurance is a policy that will be valid for life. This has a higher premium because it allows you to withdraw or borrow from its cash value while you are still alive.
Uses of Life Insurance
Getting life insurance has many benefits. Here are some of the most important ones:
- Payment for Burial Expenses. If you get life insurance, it can also cover the costs of your funeral and burial. This can at least ease your family’s burden as they won’t need to worry about funeral expenses.
- Pay off Loans. In case of your untimely demise, there might be some loans or mortgages that you haven’t paid off yet. Your life insurance will also take care of this.
- Replace Income. When you leave your family behind, they will also be handicapped in terms of income. To manage this eventuality, your life insurance can replace the income you cannot supply when you are gone, thus helping your family get back on their feet.
The Bottom Line
Hopefully, now you’re more comfortable with the thought of getting life insurance now that you know more about it. Getting the right life insurance policy can help your dependents in case of your untimely demise.
Photo Credit: David Hilowitz