While life insurance is not the most intriguing of topics it is a vital concept for many families to discuss and a vital product for many families to purchase. Prior to my job in the investment industry I had the pleasure of working in the life insurance industry for about five years and got to see first-hand how families dealt with not being prepared for the loss of a loved one. Over that time I developed the belief that purchasing insurance is one of the greatest gifts you can provide for your family.
What Kind of Policy Should I Get?
There are numerous life insurance policy types you can buy, ranging from term life to whole life or variable life. The thing to remember is that you need to buy what is going to make the most sense for you and your family. If you’re in a situation like myself, having a young family, then term life is likely the best option to take for a variety of reasons. Not only will it generally be cheaper than any of the other options, but it’ll also generally provide more in terms of what your family would receive in the event of your passing. As an aside, if you’re offered group life insurance through your employer that really should not be viewed as a replacement to buying insurance on your own but merely icing on the cake of what you’ve already purchased.
Life Insurance Should Be Considered as a Part of Retirement Planning
A lot of individuals talk about retirement planning, heck I am one of them, but few talk about the necessity of having proper life insurance coverage. Speaking personally, I believe it’s a close second to retirement planning in terms of importance. Ultimately, life insurance should really be viewed as a part of the greater wealth-building picture in terms of providing for your family and having your financial house in order. Just as you don’t want to be working at Wal-Mart when you’re in your 70s because you failed to plan for retirement, you also don’t want to leave your family in a lurch because you did not provide for them after your passing.
Life Insurance is a Personal Situation
It may sound as if I am a cheerleader for life insurance, well I really am! That said, purchasing coverage is largely a personal situation based on your needs. My wife and I run our own business and have young children, so we want to make sure we’re adequately covered in the event that one of us passes in an untimely fashion. If you’re single or younger then what fits my need does not necessarily fit what you need – if you need anything at all. There are various resources online to determine how much life insurance you need and many of them have great questions to help you consider what kind of coverage would be best for you and your situation. Just remember that even though coverage is largely a personal decision, please don’t allow that to lull you into delaying it as that could potentially make for some difficult situations for those you love.
Photo courtesy of: Loren Kerns