All of us are introduced to life insurance at some point in our lives. Whether we know someone who has taken out a policy, whether we’ve benefited from a plan directly as a result of the passing of a loved one or even if we’ve simply seen one of the many advertisements on TV. Whilst it’s a popular product and beneficial to many individuals around the world, there are still people who don’t know what it is and what it can actually do for you and your family. Personally, I feel everyone should have at least some kind of life insurance policy but that’s just my opinion.
With this article I’m going to explain what I know about life insurance and provide what I hope will be useful and beneficial information on the subject. So if you are considering taking out a policy or you’re just looking for more information, hopefully this article will be of some use.
Who Needs Cover?
In short, everyone, but unfortunately people in general leave it fairly late in life to start a policy and by that time unless the premiums are ridiculously high, there just isn’t a huge amount of money to leave behind to your family. However, this is somewhat understandable. Life insurance and securing your loved one’s future is something you seldom thing about until your later years. If more young people started their policies with the future of their children in mind, then the pot at the end of it all would be much bigger than it would be for example if you waited until you’re in your 50s as most people do.
Lower Premiums for Youngsters
Life insurance companies realise that they stand to make a lot more money over the life of a policy the earlier they land they would be policy holder as a client. Whilst a longer term policy will be more beneficial to the recipient of the benefit it is also where the firms make the most profit. Getting the younger generation to start a life insurance policy is really in the best interest of all parties involved. It’s because of this that life insurance companies offer significantly lower premiums for youngsters.
Much Needed Financial Security
What exactly a life insurance plan will cover once the policy holder has left us is another question lots of people have when considering plans. Most people simply take out plans to cover what are known as final expenses such as funeral costs and burial where as some want to make sure their partner has somewhere to live by paying off the mortgage or putting enough aside to cover their children’s education and such. The right policy can provide financial security long after you’ve gone but you must choose the right policy to suit and be willing to put the money into it to begin with.
Don’t Leave Them Lumbered With Debt
It’s bad enough leaving your partner or your children with a small amount to continue life after you’ve gone but to leave them with debt such as loans, credit cards and mortgages borders on the unthinkable. Nobody wants this and a good policy can alleviate all those fears and worries. Paying off your debts at the time of your passing is one of the fundamental benefits of any life cover plan.
Saving For Everyones Future
Some life insurance companies offer attractive rates that can rival some traditional savings accounts. Due to the fact that you can’t simply withdraw what you’re putting into your policy (although some do offer cash back) this means that the providers can afford to be a lot more attractive with their interest rates and can often pay out more after your death than you’ve put in over your lifetime due to interest rates an soon.
This can be a fantastic alternative to traditional savings accounts which you’d typically get with your high street bank. It also provides peace of mind knowing that whatever happens that money will always be there and should something happen to you, regardless of timing or circumstance, your family will be supported and looked after for years to come.
Plan and Policies
You can find a ton of life insurance and term insurance plans out there. Most of them are available right here on the Internet. Companies such as AIG offer packages to suit anyone and everyone, regardless of your age and medical status. There are also plans and policies out there to cover any situation or scenario based on exactly what you want to leave behind to your family and what you want your policy to achieve when you’re gone.
You can find policies out there which will literally cover your funeral expenses solely or you can find policies which could effectively clear your mortgage and set your family up for life. What you put into your policy will have a direct relevance as to what your family gets out of it. In short, the more you put in, the more you get out.
Some companies also offer what is known as a cash back incentive. These can occur after your first year, every few years or even every 10 years. This will usually be sold to you at the time of considering your policies. Be warned however that money isn’t free, for anyone and if you do “cash out” you’ll be taking money off the table which should really be for your family.
Cash Back Incentives
Hopefully the above has given you some food for thought. There are obviously a lot of different plans and policies and also a hell of a lot of companies operating in the life insurance arena. The key I feel is to know what you’re looking for, know what you want your policy to cover and then go out and find something that suits your needs. Life insurance companies, particularly brokers will try and sell you a plan which makes them the most money and this might not necessarily be the best plan for you and your family.
Life insurance in itself is a fantastic product, but you do need to be armed with the right information so as you can make an educated and informed decision on the way forward.