September 21st, 2013 by J. Trip
The majority of people who are contemplating purchasing a life insurance policy for the first time find it a difficult decision to make. You have enough bills to pay, so why add another expense to the growing list? Furthermore, you may never use this policy and it will act as a pointless ‘penny pincher’ – do you really need that?
After some deliberation, it may be very tempting to avoid the life insurance policy altogether. However, the purpose of this policy should cause you to stop and reconsider this neglect. If you do not purchase a policy there is a great chance that one will leave your family or partner in financial jeopardy; financial jeopardy being having to face unexpected expenses, such as car payments and general life costs.
One must also consider the means of death. Perhaps you will die in an unexpected manner leaving your loved ones facing a costly funeral. If you have a life insurance policy available then your family may find the expense simpler to pay. However, if you do not purchase this policy then the chances are greater that your family will face financial difficulties.
When examining different life insurance policies, it is best you contact a financial agent to ensure the policy purchased is most suited to your needs. There are two types of policies available and it is best you obtain that which is most affordable.
The first policy available is the term life policy and offers coverage over a set time period. This type of policy is generally the less expensive of the two options. You can find cheap term life insurance rates very easily since every company is competing for this type of policy.
The second policy available is known as the whole life insurance policy and is more costly. The whole life policy builds up cash value that a policyholder can use, unlike the term policies. It is important to remember that factors, such as one’s age and health, will affect the type of life insurance coverage you are allowed to purchase.