A reason for life insurance
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There are many reasons to get
life insurance. But, still, many people put off doing so until
they are sick or injured, causing rates to be much higher than they
would if life insurance was attained during a healthy state. The
Financial Shopper Network, an Internet website, released
an article on July 28, 2006 by writer, Jason Cunningham, titled,
“A Life without Life Insurance,” which demonstrates
the importance of having
life insurance coverage.
“For whatever reason, buying
life insurance has been reduced to an afterthought. Many of
us are uncomfortable with facing our own mortality. Yet others do
not see the value of life insurance because they are single, or
will not live to receive the tangible benefit of having this coverage,
unlike health insurance. Maybe you have been turned down for coverage
because of a health condition, but most still can qualify for a
graded death benefit policy.”
Life insurance should be thought of as protection, not an investment.
You are protecting your family and loved ones from being financially
burdened after you die.
Still, it is common to think that by the time you are facing death,
you will have accumulated enough finances to leave in your will.
The reality of the situation is that many people never “get
rich” as they originally intended.
What if you suddenly die? It is disturbing to think about, but if
it happens, your financial dependants will not only have to deal
with the grief of your death, but also with the financial burdens
of burial costs and other expenses.
“Some people have been conditioned that life insurance is
for death benefit only. So buying life insurance, sometimes is not
a priority until their mid-fifties or even late sixties when they
retire. The problem is none of us know when we are going to die.
You can literally cause your family to sell
the family home, cause your spouse to work an extra ten years
and cause the brainy child may have to go the state university instead
of your Ivy League alma mater. If for nothing else, enough life
insurance should be purchased so that loved ones are not left
with your unpaid bills.”
If you are unsure of how much coverage to apply for, many people
figure that if there is one person who financially supports an entire
family, he or she should have a claim that is equivalent to at least
five years of annual income.
For example if you support a family and make $50,000 per year, you
should apply for at least $250,000 worth of life insurance coverage.
If you are not the primary provider, you should use judgment, but
$50,000 to $100,000 should be enough coverage.
These are just guidelines and the more financial coverage you seek,
the more expensive your monthly payments will be.
