Should I get life insurance? Let’s consider the why.
It’s almost taboo to talk about getting life insurance while you’re still living. It defeats the purpose of really living life to the fullest when you’re already putting half your money into your grave. But why is there such a wrong connotation about life insurance? What is it really?
Life Insurance Defined
In simplest terms, this coverage helps your family get financial stability by paying a lump sum to your beneficiaries when you pass away. This is your safety net to ensure that your family won’t have to drastically change their lifestyle to accommodate the bills to pay now that you’re no longer there to provide. When you have the right policy, it can cover your debts such as credit cards, mortgage, and education.
Benefits of Life Insurance
There are several reasons why getting one is a good decision and a good investment but the first one is to protect the family you’re leaving behind from debt and other expenses. Grieving and figuring out how to go from here on out is difficult.
According to statistics done by LIMRA, 85% of people getting a life coverage is for burial and other final expenses, 67% for helping replace lost wages, 63% have it to transfer wealth or to leave an inheritance. The list can go on, but the bottom line, life insurance is for your family’s sake and not for your personal gain.
Is your family protected in case something happens?
Types of Life Insurance
There are four styles of coverage to categorise insurance policies – there’s the term life, critical illness, funeral, and disability.
- Life Insurance – it’s the most basic form of life insurance that covers you in the event of death. This policy will help your family ease any financial burden by paying a lump sum to your bereaved family beneficiaries. This can include unpaid dent, education, and mortgage.
- Critical illness insurance – This policy was conceptualized by Dr Marius Barnard, a South African physician while he was operating on his first heart transplant. While he can save a patient’s life, he can’t save their families financially.
This insurance doesn’t have to wait for a person to die before it pays benefits, it provides payout while you are still alive. A lump sum is given if one suffers from a life-threatening disease like cancer or heart failure.
- Disability – This coverage is a consistent income paid monthly to policy owners. The payment could be up to 755 of your gross monthly income, this amount can differ depending on your provider. This insurance covers you in case of disability or inability to work due to illness or injury.
A rehabilitation program can pay up to 50% of your gross monthly income if you are eligible. It includes resources and training so that you can go back to work faster. Your approved rehabilitation program will be covered along with vocational training, special equipment, and even workplace modification for a better work transition.
- Funeral – The last type is the funeral coverage for people who are 50 years old and above who want to cover their burial expenses instead of letting the family take on the financial burden. This usually costs around $5,000 – $15,000 making it the most affordable type.
There are many reasons why you should get one but if you’re still at a loss and you need time to think about it, you can talk to one of our agents at London Insurance Agency. We are professionals in the field and connected to multiple agencies. You can ask us every question you have in mind; we’ll show up ready to answer your queries. Your needs come first.
If you are ready, you can ask us directly for a quote.