What Is Life Insurance?
Life insurance is a very important part of life, but, what is life insurance? You may talk to an agent to get an understanding but realize there is lots of information and an endless list of choices to make.
First things first! What is Life Insurance? In its most basic form it is a contract entered into between you and an insurance company. What the contract is designed to do gets more complicated. Once entered into the contract with an insurance company you become the policy holder and the company becomes the policy provider. The policy describes what it will do upon certain life changing events. In its simplest form can be designed to pay a designated beneficiary an amount of money when the specified event is the death of the policy holder.
People in general do not understand that life insurance is the most important financial decision they will ever make. After all, whoever considers what happens when we die? Who thinks about the livelihood of your family should you die unexpectedly? The answer is no one thinks about these things until it is too late.
We just dont have that information on when are we going to die. This is the primary reason for life insurance. It is common for families to have financial goals that include paying off the mortgage, financing the kids college educations and retirement. Life insurance is designed to provide tax free coverage in money at the time that it is needed the most.
Today life insurance is overlooked by many. Most think that their jobs provide the life insurance coverage they need. This could not be further from the truth. It is true that on the job they sometimes provide life insurance and allow you to even buy more at low rates. The most important part of this story is that most people do not realize that when the job is gone so in the life insurance.
Many bank on their jobs providing what they need in terms of life insurance. The major problem with this big mistake is, say your job lasts 20 years which no longer happens today, but say it does. Then you leave of retire and you are 55 to 65 you leave the job and now you must buy your own life insurance. At ages 55 to 65 even if you are still have no medical problems securing life insurance can be a very costly undertaking. Many cases people with health problems are unable to get life insurance at any price.
The smart move for young people is to take the no cost insurance provided by their jobs. At young ages it is very low cost and easy to get permanent life insurance on your own. When life is purchased at a young age the price of permanent insurance never goes up in price. Permanent life insurance is the worlds best investment a young person can make.
Today you can not only purchase insurance online you can learn what you need to know about the different types available to you. You get to see what is in the policy you are considering before you buy. A simple internet search will provide choices of many different companies. Another benefit is the use of the online quote process. You can get insurance quotes from a number of companies at the same time. With this benefit you only need to provide information one time instead of many times.
by: Captain Dave