Let’s face it: life insurance is not a top priority for many people, especially the younger generations. Many individuals would rather not think about the issue of death. Regardless of any fears or concerns, every person, especially those with dependents, should look into their life insurance options. It can seem overwhelming at first, but there are many reputable companies out there that will help make the seemingly daunting task of purchasing a life insurance policy that much simpler. For example, life insurance from PINNACLE NZ comes in a variety of options, such as the Mortgage Cover, and the Funeral Cover. Read up on the subject, and discover why a life insurance policy might be the most important purchase that you haven’t yet made!
The Importance of Life Insurance
When it comes down to it, life insurance is not for you; it’s for the loved ones you leave behind. Consider all of the expenses that will need to be covered after your death- mortgage payments, car payments, doctor fees, funeral expenses, and credit card bills are not the type of thing you want to leave for your family when you are gone. Even individuals with grown children and no debts benefit from having life insurance. In addition to your beneficiary getting a death benefit, there is also cash value to your life insurance. For instance, the cash value inside your policy can help out your retirement income if needed, through a partial loan or surrender. It can also be used to pay estate taxes upon your death so that your beneficiaries don’t have to worry about this cost. Additionally, life insurance can be used to cover expenses should you become terminally ill.
Types of Life Insurance
There are many options when it comes to life insurance. Though the specifics vary from country to country and from company to company, there are certain options that can be found in most regions. “Term Life Insurance” refers to a coverage that lasts for a set amount of years, or it can be a contract that expires when you reach a certain age. You pay the same premium throughout the duration of your entire contract, and if you pass away while the contract is active, the agreed upon sum of your life insurance will be paid out. If you pass away after your contract expires, no sum will be paid out. (Of course, you can choose to renew your contract when your term expires). Permanent life insurance, on the other hand, does not include a set term or expiry date. Generally, it’s divided into two categories: whole life insurance and universal life insurance. Whole life insurance policies have fixed premiums. With these policies, your payments exceed the required amount when you’re younger to help subsidize your payments as you age. Universal life insurance offers flexible premiums, as well as the option to put your payments on hold in your later years.
What to Know About Life Insurance
While younger people tend to dismiss the idea of life insurance, it is much better to purchase life insurance in your twenties or thirties than in your fifties or sixties. Premiums only increase with age, so it’s much better to start your contract when you are young and, presumably, healthier. Many older people looking to purchase life insurance find it to be too expensive. When purchasing a life insurance policy, be sure to shop around; there are many companies out there, and it’s important to find the one that best meets your needs and desires. If you have a spouse, consider a joint life insurance policy; you can usually save money on your premiums this way. Many individuals believe that they are sufficiently covered through their work life insurance; review this policy, as it is often not enough to meet the needs of you and your family.
It may not be the easiest topic to think about, but the purchase of life insurance will provide peace of mind for you and your loved ones, and that alone makes it an investment worth considering.