The idea of life insurance may be daunting for many of us, as it involves considering our own mortality. However, it’s not always a necessity but, there are particular stages in life when the prospect of life insurance needs serious thought and exploration. There is a variety of alternatives available when it comes to life insurance.
GETTING MARRIED
My first brush with the concept of life insurance was when I tied the knot. The intention was to ensure economic safety for my spouse, should any unfortunate event befall me. In most cases, the need for life insurance arises at this stage if regular bills depend on your income and your passing would cause severe monetary challenges for your spouse. Life insurance serves as a precautionary measure to alleviate such risks, providing financial support to your spouse for bills, funeral expenditures, and daily living costs in case the worst happens. As unsettling as it might be, it’s crucial to think about your spouse’s financial protection when entering wedded life.
HAVING A FAMILY
The birth of my first child prompted my second consideration of life insurance, and this was when I actually purchased a policy. When you become a parent, you find yourself viewing many things from a new perspective. Your untimely death can cause considerable hardships for your children, both emotionally and financially. Acquiring life insurance can help lessen these burdens. I ensured that both my children and my spouse were listed as beneficiaries on my life insurance policy to create a financial safety net for their future. Hopefully, they’ll never require this safety net, but nevertheless, it serves as a protective measure while I educate them about proper financial management.
TYPES OF LIFE INSURANCE
When you’ve reached the point where you’re considering life insurance, it’s essential to determine which policy suits you best. It’s not as straightforward as it may seem, considering the variety of policy types and providers.
TERM LIFE INSURANCE PLANS
My preference is for term insurance policies, which cover you for a specific period. Standard terms include 10, 20, or 30 years. I opted for a 30-year policy, which I don’t plan to renew once expired as by then, my kids would presumably be independent, perhaps with families of their own. Compared to other policies, term insurance is more popular.
While it’s worthwhile to examine different providers, I’ve been with Nationwide for a while, thanks to their tireless efforts in securing the best rates for all their insurance products.
WHOLE LIFE INSURANCE PLANS
Whole life insurance differs from term insurance and isn’t a one-size-fits-all solution. These policies are generally more costly but can provide lifelong coverage and potential dividends. They don’t suit everyone, so it was more practical for me to go with term life insurance. However, if you’re considering a whole life insurance policy, there are many reputable companies to consider.
CONSIDERING LIFE INSURANCE
Making a decision about life insurance is no easy task as there are multiple elements to consider. However, gaining clarity on your purpose for acquiring a policy, your age, desired coverage, policy duration, and choosing between term and whole life insurance will guide you in your quest for the appropriate life insurance policy.
Are you contemplating getting life insurance? If so, what triggered this thought and which policy did you choose?
