Have you ever thought that when you buy life insurance, you make more money that you can spend? We all have important responsibilities that we take care of. We have to save money for our old age. We need to set up a fund for emergencies, just in case. We definitely pay our bills on time, which helps us keep a good credit score. Even when we're gone, these needs don't go away. The people who made it out have the same worries as we do now. Having enough life insurance can help them out a lot.
The Group
If we are married and have young children, we need life insurance as soon as possible. The family will need the money we'll no longer be able to bring in. Still, you have to pay the mortgage or rent. You still have to pay that insurance premium to cover your house in case of a fire or maybe a hurricane. There will still be a need for the health insurance policy...
The spouse and children who are still alive still need to eat. Still, they have to wear clothes. The kids still need to take part in those activities outside of school that you enjoyed paying for while you were here working. They need a car, and if they borrow money to buy one, they will still have to pay for all the costs that come with it, like monthly payments. The car must be insured and kept in good shape. To keep going, it will need gas and oil.
What's Going On?
You need life insurance if you own a business, whether it's a sole proprietorship, a partnership, or a corporation. Since the sole proprietor and the owner are the same person, all of the business's debts are the owner's debts. In partnerships and corporations, life insurance is needed to pay for buy-sell agreements and cover key employees.
If everything is taken care of, we don't have to worry as much. We have money that we wouldn't be able to use if we didn't have that life insurance policy. We must, of course, save money and plan for retirement. We also need an emergency fund that we can get to right away, but having enough life insurance frees up some of the money that would have had to be saved for important things after death.
No matter what kind of policy you buy, term or whole life, you pay just a few cents on the dollar to take care of these things. Term insurance is the way to go that will cost the least. There are many different kinds of term life insurance. Level-term policies, with terms of 5, 10, 15, 20, 25, and 30 years, are the most popular. There are also modified whole life, graded premium whole life, and variable life, which are all kinds of whole life.
Here are some things to know about term life:
http://www.lifeinsurancehub.net/term-life-insurance-3.html
Here are some facts about Whole life:
http://www.lifeinsurancehub.net/whole-life-insurance.html
