DECEMBER 3, 2020: It might be a safe bet to say that the only time you hear about life insurance is when you review your benefits at work. Remember those benefits do not go with you if you should no longer be employed. You need coverage that is there when you need it.
You might not fully understand what life insurance is all about or know all the different components of it. With so many options and providers offering life insurance, confusion can only become more prevalent.
The earlier you can prepare for the unexpected, the better. Here are five essential things you might not know about life insurance to get you more familiar with the coverage and better prepared to adequately provide for your family and protect your assets.
Life Insurance Comes in Two Versions
Life insurance isn’t just a one size fits all coverage. There are two versions of life insurance coverage for you to choose from. One is term life insurance coverage, in which you pay a specified premium amount for a set number of years: 30, 20, 10, etc. With this kind of insurance, you and your family are covered only for as long as the term is effective. Once the term ends, so does your coverage.
The other choice you have is permanent life insurance, which is exactly how it sounds. This option remains in effect until you die or stop paying the premium amounts. While this option is more expensive than term, you don’t have to worry about re-upping your policy due to expired coverage.
A Sound Financial Investment
Most people know how important it is to save money for the future with a 401k or IRA account. But did you know that purchasing life insurance can also present a sounder financial investment for your portfolio and your overall savings? That financial relief protects your spouse and family in the event something happens to you. If you already have a savings account or investment account, life insurance helps to supplement it to ensure your family is more than well taken care of after you’re gone.
Life Insurance is More Affordable Than You Think
It’s no surprise that some people stay away from purchasing life insurance because they think it costs an arm and a leg. Some life insurance types can be rather expensive, yes, and the more additional options you add, the more expensive your policy will be in the end. But providing you are in good health and stay away from things like smoking or bungee jumping, you have a good chance of choosing an affordable life insurance plan.
Major Life Events Are the Best Time to Invest
From having your first child to tying the knot to getting a promotion at work, many different adult life moments can trigger investing in life insurance. When you’re embarking on a new career or welcoming someone into your family, it’s best to add life insurance based on the added responsibility. Having more on your plate means there’s more at stake, so having life insurance can help give you peace of mind and one less thing to worry about as you focus on your new addition or role.
Basic Coverage Might Not Be Enough
The average person might think that the only reason for buying a life insurance policy is to cover expenses, like funeral costs or paying off debts. Your policy should offer enough coverage to provide for your family, their current needs, and future needs that may come their way (I.E., college). Make sure to go over your current situation and potential future needs with your provider to understand the level of coverage you need.
About National Catholic Society of Foresters
At National Catholic Society of Foresters, we pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.