Because of the very nature of life insurance, many people don’t want to discuss it. It is difficult to talk about death, so life insurance is often a private matter. But really, it shouldn’t be. For this reason, there are a lot of misconceptions about life insurance that need to be dismissed. Here is what you really need to know about how much insurance you need.
Do You Even Need Life Insurance?
In general, people assume that life insurance is a foregone conclusion, but it doesn’t have to be. If you do not have dependents and if you have enough money to cover your expenses after death, you don’t need to take out an insurance policy. The same may be true even if you have dependents but you have enough assets for the future.
How Does Your Age Affect Premiums?
People also often assume that it is important to invest in life insurance when you’re younger and it is easier to qualify. The premiums will also be lower. However, even though the premiums are lower, the qualification process is no simpler at a younger age.
Should It Be an Investment?
Even though we used the term investment earlier in this article, the truth is that insurance and investments are two very different things and should be treated as such. Various funds are a much better place to invest money for the future.
What Types of Life Insurance Are out There?
There are two primary categories of life insurance: term and cash value. There is no simple definition for either, but keep in mind that insurance agents tend to make a higher commission on a cash value policy and they are often difficult to cancel. Term life insurance tends to cost less, but does not have a loan provision. Do you have enough or too much life insurance? Give me a call today to find out how much you need and which kind of product might be best for you.