WEDNESDAY, AUGUST 26, 2020
There is no state or national law declaring that you must carry life insurance, no matter your age or health. Life insurance is an optional coverage that many people choose to carry in order to protect their loved ones after they pass away. Although life insurance is not legally required, it’s important to consider whether you and your family would benefit from a life insurance policy.
What are the Benefits from a Life Insurance Policy?
A life insurance policy is designed to provide for your family once you are no longer able to do so. This includes:
Overall, life insurance is supposed to make your passing financially easier on your loved ones.
Another upside is that life insurance is relatively inexpensive. Depending on your location and your health, you could pay as low as $53 a month on a life insurance policy. This also depends on your coverage limits.
Life insurance policies come in a variety of forms, designed for different purposes. The most common types of life insurance policies are whole life insurance and term life insurance. As it sounds, whole life insurance is a policy that you can purchase to cover the remainder of your life, up until the point you pass away. You don’t have to worry about running out of time or renewing your policy with whole life insurance.
A term life insurance policy, on the other hand, only covers a certain number of years. Term limits may vary, but you can usually purchase terms at 10, 20 and 30 years. This type of life insurance policy is used by people who only want life insurance for a certain amount of time for one reason or another. For example, if you only want a life insurance policy until your home mortgage is paid off, you may purchase a term life insurance policy.
Downsides to Life Insurance
Essentially the only downside to life insurance is that you cannot receive payout once it is over or if you cancel it. While there are some life insurance policies that allow you to pull a certain amount of cash value, you generally do not get any compensation if your term life insurance policy ends or if your life insurance policy is cancelled.
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