There are only a few truths in the world. One of those truths is that eventually you will be gone. As cold as it may sound, no one has proven to live forever – time is the one equalizer in life. Therefore, it is better to be prepared for the unknown future than to react after it’s too late. Life insurance companies won’t pick you up on your death-bed and provide insurance to your family after you pass – unfortunately the world is not that generous.
On the contrary, many insurance companies will protect your family for relatively small fees. The purpose of life insurance is simple – and don’t let anyone tell you different. Life insurance was designed to make sure your kids and your family are financially protected if you die prematurely. You don’t need to carry life insurance your entire life, but it is important to carry during pivotal times in your independent life.
Even If You’re Young, You’re Not Invincible
You have more people who need you than you think – given the financial collapse in the mid 2000’s, many older people lost everything – they lost their investments, pensions, 401(K), and home possessions. You’re parents may need you more than you know because of this financial meltdown. They will never have enough time to recoup all of their earnings and if you were to pass, not only would they be heartbroken, they will also be broke.
Newly-weds Need Insurance the Most
The best time to carry life insurance is when you’re first starting out with your own family. Chances are that your spouse would not be able to sufficiently support him or herself if you tragically died, especially if you just purchased a home on a mortgage you pay with both incomes. If you’re one of these people, it’s essential that you have coverage.
Who pays for the funeral?
This is a horrible thought immediately following a tragic and untimely death but someone has to fork out the bill. I’m sure many people don’t set aside a death budget because it really doesn’t do you much good, so when tragedy occurs, many people are left with an inability to provide the deceased with proper burial ceremonies. Life insurance will help with these costs and much more.
You Have a Small Business
Many of the new corporate structures eliminate this possibility from ever occurring, but if you’re involved in a partnership than you may want to purchase life insurance. Co-owners can enter into a buy and sell agreement through a life insurance policy that allows family members the right to payouts in company dividends without holding stake in the company. If there is no policy and a partner dies, his ownership ceases to exist.
It’s Cheaper to Get in Earlier
As you age, whether your in good health or poor, the cost in premiums to obtain life insurance increases. A healthy 25-year old male can receive a $500,000.00 life insurance policy for around $30 a month, whereas a 45-year old male may pay double for the same plan – even if the 45-year old is in better physical condition.
This article was written by Matthew Hall. Matthew Hall is a curious adventurer and world explorer and although he lives life on the edge, he’d never take a chance with the financial stability of those who depend on him. To fund his travels, Matthew is a professional writer for InsuranceLand.org. To learn more about his journeys, take a look at his Google+.