As responsible parents, there are many things to provide for our family. Those include life insurance. Why? It is because we want to make sure that our family—people we love so much—financially safe if terrible things happen to us. Death and accidents can happen anytime. If you have already insured your life, this is probably the right time to check your policy book. Check if the money or benefits your family will get are enough to support their life. If you haven’t had it, this is probably the right time to purchase it. However, there are many things you need to know before you decide to purchase it.
All about Life Insurance
1. Having a life insurance is a life-time commitment, for both of the insurer and the insured people who choose the permanent policy. The benefits of this kind of Insurance are the amount of money that your family—the beneficiaries—will get if you pass away. The insurer will have obligation to give the beneficiaries the benefits if the insured one pay the premium. The adult members of your family need to know if your life is insured. So, if terrible things happen to you, they can contact the insurance company. If you also have liabilities, like mortgage payments, car installment, etc, you need to tell them as well. So, if you haven’t finished paying all of your liabilities and you pass away, they can pay all of the liabilities with the money they get from the life insurance.
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The Types of Life Insurance
- Term Policies. The premium you need to pay will include the insurance cost.
- Permanent Policies. The premium you need to pay will include the cost of insurance and the money deposited to cash account. This is like a saving account that can be accumulated with the capital. This saved money can be used while the insured one is still alive.
2. About the additional cash called cash value will also be given to the beneficiaries together with the amount of money from the life insurance.
3. If you want your life to be insured, you absolutely have to pay the premium payment. The Life Insurance Company you choose will determine how much money you have to pay. This is the company that determines any death risks you will face based on your age, job, gender, your family’s medical history, lifestyle, etc. You also have to review the type of insurance for life mentioned before when it comes to premium payment.
4. You know about the value of money, right? It decreases for sure. One million today won’t be the same in value five years from now. So, you have to evaluate your life insurance and upgrade it yearly. When things happen like divorce and adoption, you also need to evaluate it.
To conclude this article, to have a life insurance means you have to make yourself disciplined in living your life. For example, if you want to ride a motorcycle, you need to bring your riding license and you need to wear helmets. If not and you pass away because of the accident while riding a motorcycle, the insurer won’t pay the benefits for your beneficiaries. There are many things that the insured people cannot do, and surely every insurance company has its own terms and regulation for its clients. Hopefully this article makes you more confident to purchase life insurance.
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