What’s, Whys, and When’s, of Purchasing a Life Insurance Policy

Many people regard Life Insurance as too expensive, and even though they might have considered purchasing a Life Insurance Policy, decided against it, because of this.  The fact is that 80% of consumers have misconceptions about life insurance costs.

Because of these misconceptions they put other priorities ahead of purchasing life insurance.  Due to the concerns people have on the high cost of life insurance, they would rather use their money on more immediate financial needs.

A study found that people rather spend their money on the following 3 things:

  1. 29% opted for saving for a vacation as a better option than purchasing life insurance.
  2. 23% rather paid for recreational activities like movies or shopping and going out to eat, than paying monthly for life insurance.
  3. 49% of 65-year-olds and older, rather paid for expenses such as cable, cell phones, and the Internet before they paid for life insurance.

The argument follows that if you invest your money wisely, the money you would have paid for monthly premiums on your life insurance, you would be worth more upon death.  But you do not know if you have a lot of time to invest the money.  A Life Insurance Policy will financially safeguard your loved ones and prevent financial hardship.

When purchasing life insurance, remember these 3 things:

  1. Shop around for the right policy and the right provider: Do your research and speak to a licensed agent.  You should fully understand all the options and the kind of policy you are going to purchase.
  2. With age, your premiums might increase: In some cases, the premiums go up as you age.  This is mostly due to the fact that the older you get, the more health problems may occur.  It is definitely more cost-effective if you start paying life insurance when you are still in your 20’s or 30’s.
  3. Remember that your needs can change: On a yearly basis, and when major life events happen, make sure to review your policy.  A milestone, like getting married, having children or buying a house, are all factors that will determine the amount of coverage your policy need to deliver.

Courtesy of https://visual.ly/community/infographic/home/10-ways-lower-your-home-insurance-costs

Life Insurance can be beneficial towards protecting your family.  You might enjoy a better night’s sleep, knowing that your family has an extra source of protection and income, if you should die.

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