The decision of whether to purchase a life insurance policy should be weighed as heavily as other long-term financial investments because the decision will affect those you leave behind.
Individuals with spouses and children may benefit most from maintaining a life insurance policy to ensure that their survivors’ financial needs are met, especially if the policyholder provides the primary source of income, according to Bankrate.com.
Individuals may better determine how much to invest in a policy by examining their current financial situation and accounting for future needs, such as funeral or medical expenses and college tuition.
Deciding whether to purchase a term life or whole life insurance policy should be carefully considered, as term-life insurance policies only provide coverage during the policy term, which can last up to 30 years, according to the Insurance Information Institute. Individuals should contemplate the age and employment status of spouses and children to help them make the best decision, reports Bankrate.com
Your insurance premiums will increase as you age and develop more health problems so the opportunity to save on premiums will not be an option. Even if you don’t have dependents, a life insurance policy can offer protection in the event that resources are not available to pay your expenses after you pass away. You never know how your personal situation may change if you are single. Better to have a life insurance policy in place and make adjustments if need be, rather than wait until health declines.
Investing in a life insurance policy can be a relief to those with families, especially if their income is limited and may not provide sufficient financial support in the event of their death. Individuals in good health may benefit from lower rates and premiums if they purchase a policy while they’re young.