Life insurance is a contract between the life insurance company (insurer) and a policy owner. A life insurance policy guarantees a designated amount of money will be paid to the named beneficiary when you pass.
If you are single, you may wonder if it’s necessary to have life insurance. Ask yourself these questions:
1. Do I need life insurance – the answer is obvious. Yes, you do.
2. What type of life insurance should I buy? You have two options. Term life insurance or temporary.
3. How much life insurance do I need? A good insurance agent can answer that question. But consider a payout (death benefit), where a designated amount is paid to your beneficiary named in your insurance policy.
4. Will I be able to obtain life insurance if my health is not good? The answer is obvious. A good life insurance agent can introduce you to life insurance companies that specialize in higher risk based on the condition of your health.
If you have a mortgage and should pass away, and your debts pass on to your beneficiary, a life insurance policy can help protect your loved one from being subjected to foreclosure.
If you run a business and have taken out a business loan, in most cases, you will have to obtain a life insurance policy with the lender as the beneficiary. This will protect your beneficiary from feeling the burden of paying steep bills.
If you have children or if you have elderly parents or other siblings, then you should make this a priority. A life insurance policy can help them a great deal so that their care is uninterrupted.
Protect Your Estate
Should you pass, and do not have substantial savings, a life insurance policy will help pay your burial expenses.