Life is uncertain. Anything can happen the next minute. So wouldn’t you like it if your loved ones are secure financially even after you are gone? So good life insurance can help pay your expenses and debts and remove the burdens from your family. But you may ask, is life insurance worth paying for? Then this article will help you answer that.
Types of Life Insurance
Before you can decide whether life insurance is worth paying for or not, you need to understand what life insurance has to offer. There are two main types of life insurances:
1. Permanent life insurance
As the name suggests, this type of insurance offer policies that are permanent and so cost more. Meaning they provide coverage as long as you pay. Moreover, there is a part of permanent life insurance where you can invest money, which will accumulate over time, and then you can borrow the accumulated wealth later on. Visit https://www.insuranceandestates.com/cash-value-whole-life-insurance-pros-and-cons/ to learn more about it.
2. Term life insurance
And this type of insurance covers you for a specific term, just as the name suggests. You can buy it for a decade or two or even three. They are similar to auto insurances; you have to pay every month. For example, if things go wrong, then a benefit will be paid.
This is a popular choice, and people purchase this till their retirement when their kids have grown up and the mortgage is repaid. This type provides coverage for the time period you actually require insurance.
Pros of life insurance
Is life insurance for you? Is it worth paying for life insurance every month?
It gives peace of mind
If someone depends on you like a spouse or a child, then having life insurance can provide a tension-free living, knowing that your family and loved ones will be secure even after your death. You will be at peace knowing that they can continue living comfortably even after you are not there to provide for them. Life insurance lessens the financial burden and ensures that tuition & bills are paid etc.
As already mentioned, there is an option in a permanent life insurance policy that allows you to invest money, which you can borrow later on. The cash value that builds up depends on the time period you have had your insurance for.
After a decade or two, there can be enough wealth accumulated that you can use it wherever you want, like paying for college tuition. This is a pro for permanent life insurance, which allows you to borrow money whenever you need a large sum of money.
As long as you keep your insurance active by paying, your cash value will build up, and thus you can save money through this method. This is a tax-deferral strategy of life insurance that allows you to make savings but not pay any tax on it till your reach a point where you retire and don’t have to pay much tax.
You pay comparatively little amounts of premiums for life insurance in exchange for a tension-free life, knowing that your loved ones will be safe and financially secure in case of your demise. So what are you waiting for? Contact an insurance adviser today!
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