One morning I had a coffee with my Dad. He does not look worried, but he seems to prepare for something. A few nights after, my mom and dad were talking about insurance policies to see if they can afford to purchase such services.
To cut the long story short, they had decided to apply for my father’s life insurance. He was the breadwinner, and his work is our main source because mom was just starting her career.
Hearing the conversation that my dad had with my mom back when I was in high school introduced me to how important these services are. It also showed that my father prepares smartly for the future of our family.
But it leaves me thinking why, among my friends, only two of the eight families are the only ones covered and are guaranteed with benefits. It showed that there are still a lot of families who opted to purchase the term insurance.
So what exactly is life insurance and how does it help each family and why you should purchase life insurance from online financial adviser Life’s Great
Define Whole Life Insurance
Whole life as compared to term insurance, is that it stays enrolled while you are alive. For basic understanding, it is a permanent insurance that covers a wide variety of packages. On the other hand, term insurance comes less cheap with limited benefits.
When do you consider applying for a whole life insurance? If you and your work have dependents it is a smart idea of considering one but if your spouse is financially secured and independent plus you have your children’s education planned and settled, term insurance is good enough.
Premium life insurance is five to ten times more than the cost of a term insurance, but it goes with an automatic investment, which is commonly placed on the stock market or the mutual funds.
When you die, your dependents gets the full benefit of the insurance and the investment. Rates are also fixed every year plus when you decide to cancel a whole life insurance policy, you get the value of the money, tax-free up to the amount you have paid.
Whole Life vs. Term Insurance
Learning these two is very essential when deciding which. Although premium insurance always sounds like the best option, it would not be as good enough for those who are not breadwinners compared to those who are.
Some benefits of a Premium Life Policy
- Pays a tax-free death benefit
- rotects your estate from debt (mortgage)
- replaces lost income from your family
However, term policies are designed for takers who plans to have a shorter duration of insurance because it only runs for a period of time. A student loan is a good example of which a term insurance can be considered. Your child will not forever be a student, therefore a specific time frame can be managed during the application of the said policy.
One must maximize the value and potential of his money when it comes to investments. If you wanted financial protection for your family for the next 3 to 5 decades, go get yourself a premium plan. Because by the time you die, your family gets the whole percentage and value it accumulated over the years plus the investments in the stock market.
How To Buy Life Insurance
1. Can You Afford One?
Know where you stand at. Study your cash flow and seek the opinion of your family or loved ones. Know the numbers.
2. Plan Your Timeline
Are you going for a short term insurance around 10-20 years or an insurance after death is what you need?
3. Talk to Insurance Pros
You may have heard about insurance agents. Study and learn their offers and quotes. Ask specific questions that you can benefit from 10-20 years from now.
But beware of captivating quotations. Shop around because each agent comes up with different numbers with different set or plans of insurances. Know which fits better with your plans.
4.Make Sure the Insurance Company is Established, Reliable and Strong for Years
You will be offered several convincing benefit packages. The rates also goes along with your age during the application. The younger you are the better their offers will be.
Benefits will also be blinding. Be mindful when agents’ offer are too good to be true. Remember, you are trusting your hard earned money as well as the future of your family to these people.
As per my dad, he does not have fancy cars and properties that everyone can see. He invested into the intangibles that can support and secure us 10-20 years from now or even longer.
Whether your insurance is whole life or term policies, guaranteeing your future for your loved ones is the smartest way of maximizing the potential of your money and labor.
Invest now and purchase life insurance from online financial adviser Life’s Great to get yourself and your family covered by unique benefits with flexible terms.