Ask nearly anyone, what is your the most important insurance policy, and it?s a good bet that the answer will be ?health insurance?. You may also get one or two suggesting auto insurance, or even disability insurance. You probably are unlikely to hear ?life insurance? as an answer from anyone, even though it very well may be the most important.
Why life insurance is your most important insurance policy
Simply put, life insurance will be your final financial contribution to your loved ones. There is no greater type of insurance than the one which will sustain your dependents after your death. And there may be no better means of survival for your loved ones than a good life insurance policy.
It?s not that health insurance, auto insurance, disability insurance, or any other type of insurance is not important. Anyone who was ever had a medical crisis or a major auto accident knows this only too well.
But as far as your family is concerned, you will still be around with the hope for a better future even in the midst of a medical crisis. And you?ll probably go on to drive again after an auto disaster. But once you die, not only will your family have financial needs, but they won?t have you around anymore to help with them. Your life insurance policy will be your last, best gift to your family. It could be the very thing that keeps them out of poverty.
Different life insurance policies for different needs
There is sometimes the belief that life insurance policies fall into the ?one size fits all? category, but nothing could be further from the truth. You can get a insurance policy customized to fit your individual needs.
As an example, you can get a basic whole life policy that will provide a fixed death benefit to provide for your family after your death. But if you also have a mortgage on your home, you can add a mortgage life insurance policy rider that will provide for the payoff of your mortgage in the event of your death. The mortgage life insurance would pay off the house, while your whole life policy would provide living expenses for your family.
You can also add a term life insurance provision to your regular policy so that you will have a higher level of coverage early in life when your children are young. This is an important advantage because affordability is always a factor for young families. Using term life, or a combination of whole life and term, will make it possible for a young family to afford a higher amount of coverage at a time when it is most needed.
Later, when your children are older, you can either reduce or eliminate the term coverage to fit your budget.
Just because you need it doesn?t mean life insurance has to be expensive
Unlike health insurance and auto insurance, there are often less expensive options with life insurance. For example, whole life insurance tends to be the best coverage because both the death benefit and the monthly premium remain the same throughout your life. However, whole life insurance also tends to be more expensive.
As an alternative, you can use term life insurance as a less expensive alternative. In fact, many times term life insurance costs only a fraction of the amount of whole life insurance for the same amount of coverage.
It?s also important that you shop around to get the best price. You can start by surfing the web using life insurance quote or a similar term that will bring up sites that can help you start the process. Whenever you?re shopping for life insurance, or any other type of insurance, it?s very important that you get competing quotes. This will enable you to compare policies to each other, as well as to get the best price.
Dollar for dollar, life insurance tends to be one of the best insurance values available. For as little as a few dollars per month, you may be able get several hundred thousand dollars worth of coverage to have available for your family in the event of your death.
And if that unfortunate event ever happens, you?ll have provided the single best financial asset you can in the form of a life insurance policy.