Why I need Life Insurance?
I was searching online to find the best life insurance policy to meet me and my family’s needs. I began asking myself questions. How much life insurance can I afford to pay? What kind of policy is best? How much cash and income would my spouse and children need if I were to die? With so many questions, I want my life insurance policy as a source of cash needed for expenses of final medical bills, paying taxes, mortgages, or other debts that I may have. I want my policy to provide income for my families living expense: my children’s current education, their future educational cost and any other future expenses that may come up. I do know that while I may want a high dollar policy of a $1 million dollars, if my asset doesn’t add up to a $1 million dollars there is no way an insurance company is going to give me a policy for that amount. Ultimately, I must choose what type of life insurance policy is best for me a term or whole life insurance policy.
A term insurance policy is a death protection for a selected period of years usually from 1 to 30 years. Death benefit will be paid only if I die within that selected period of years. I would need to know if my term policy is guarantee renewable, after the selected period of years. I need to take note that each time I renew my policy that my premiums will go up because of my age. I will need to know if I can convert my policy before the end of my term policy into a whole life policy.
A whole life insurance policy gives me death protection for as long as I live. I know that the same premiums will be the same for as long as I live. The premiums would be higher than a term policy, but with a whole life policy; I will be accumulating a cash value. I can use my cash value for paying my premiums if I get sick or unemployed. Plus, on some whole life plans I can use the cash value as collateral on a loan. If I use the cash value in my whole life plan, it will be deducted from the benefit if I were to die. This means less cash and/or benefits my family will receive.
There are a lot of decision I need to make in order to find the right life insurance policy for me and my family. I am confident if do my research and ask the right questions that I will find the right plan. Plus, I need to remember whatever plan I chose, I must stick with it to get all the benefits the policy has to offer.