Good Financial Reads: Is Life Insurance Worth It?

Life insurance is contrastingly both easily understood and the object of much misunderstanding.  The basic premise is simple:  If you die and have a life insurance policy, the insurance company will give money to your survivors.  Used properly, life insurance is a crucial element in a financial plan, keeping things on track financially in case a death removes a breadwinner’s income from the plan.  Mess it up, and it can be the cause of undue expense and confusion.  Worse yet, you can risk not leaving your loved ones with the means to carry on without you.

Getting life insurance is not on most people's priority lists. It can feel like a hassle to go through the process of scheduling an exam and sharing your medical history.

The reality, however, is that life insurance can be a useful part of your overall plan to make sure your assets, your property, and the financial security of your loved ones can withstand the worst-case scenario of your sudden death.

You know how I know you are a responsible, caring adult?  Because you give a crap about what happens should you pass away unexpectedly.  You have officially reached adulthood when you start thinking about someone else's life other than your own.  Feels kinda good, doesn’t it?  Not only are you thinking about someone else, you are looking for ways to better their lives should something unforeseen happen to you.  You get a gold star my friend.

In the wake of the pandemic, many people have scrambled to take out insurance policies. But before you buy, make sure you understand the real purpose of a policy so you can choose the best option for your needs.

The well-being of your family after you’re gone may worry you. If they rely on your income to meet various financial obligations, then it may be a good idea to sign up for life insurance. After all, you want them to be able to keep up with the lifestyle you’ve worked so hard for in the United States. A life insurance policy can be initiated with an insurance company, who will provide a lump-sum payment in the case of your passing. It’s called a death benefit and will be given to the beneficiaries you specify on the policy.

So, you’ve made the decision to apply for life insurance as the next important step in your financial and estate planning. You know what kind you’d like to purchase and what the provider’s process looks like, but you may not know how much it will cost long-term.

You need to know that the cost of life insurance will be dependent on many factors. However, when comparing life insurance policies, the variables to examine will include the annual premiums, cash values, and dividends with the time value of money applied to each variable.