Virtually everybody in our modern society knows about life insurance. As long as one pays their premiums on time and in full, they leave behind substantial sums of money to their closest relatives, friends, and acquaintances, or whoever their beneficiaries are. But as Freedom Life Insurance points out there’s a little more to this than that.
Tons of people have active life insurance policies. For all you know, your parents, guardians, or relatives might have purchased life insurance policies on your life. Further, those same people might have handfuls of life insurance coverage themselves.
Although it might not make much sense, most people actually don’t know how to properly shop around for life insurance. Some of the most troubling questions in regards to obtaining life insurance include:
The Truth Behind Buying Life Insurance
- Who actually needs life insurance?
- How much do I, age X, height Y, weight Z, non-smoker, no family history of cancer, actually need?
- What’s the most fitting policy type to purchase for protective, more-than-sufficient life insurance coverage?
OK, just like buying practically any other kind of insurance, shopping around for life insurance is pesky, to describe the process Kindly. Doing so is typically intimidating, as representatives of life insurance companies are great at setting negotiating boundaries clients can’t climb over, using emotional leverage to persuade potential buyers, and can make things complicated at will to blur the lines of financial fairness.
Do you know the barebones basic points of life insurance? If you’re like me, then probably not. Let’s explain what life insurance is for, what types of coverage there are, and other things you – yes, that’s you – should know about life insurance.
Life Insurance Is Nothing More Than Death Insurance
Let’s take into consideration a hypothetical, relatively normal family of 5. It consists of a father who earns $75,000 per year, a stay-at-home mother that never brings in more than $8,000 each year, and three kids under the age of five.
Who could that family not afford to lose, in a strict financial sense? The father. Replacing his $75,000 salary would be virtually impossible.
And although we don’t want any family to lose their loved ones, that household could lose any of its three children, or even its mother, and still be able to pay bills and meet other financial obligations as normal.
If you provide financial support to anyone who relies on you that’s disabled, under 18, or considered to to be a senior citizen, don’t be responsible- get life insurance.
All of the above is true for businesses that could face total failure without the regular income provided by their owners.
Learn What Life Insurance Is Not, And Will Never Be
Ultimately, insurance salesmen are trying to make a living to feed and house themselves and, if applicable to their personal situations, their families.
Life insurance is a means of offsetting financial burdens caused by death. That’s all life insurance will ever be.
Such policies are never an investment in one’s self or business, which many salesmen will claim. Investments can be sold and traded, like stocks and bonds. Life insurance policies can never be traded like financial instruments.
For more information on a career at Freedom Life Insurance Company of America, or a career as a part of the USHealth Group and USHealth Advisors umbrella we’re always hiring: https://t.co/jqHkx0OXrr pic.twitter.com/ILyqjr2Qg5
— Freedom Life Insurance (@freedomlifeins) February 13, 2018
The Two Central Types Of Freedom Life Insurance Policies
Every provider of life insurance offers the following two types of policies:
- Whole life life insurance, also known as permanent insurance
- Term life life insurance, or buying policies on a temporary basis
Whole life policies are far more expensive than their term counterparts. They also offer less return on investment.
Term life policies, on the other hand, are cheaper, but still offer identical levels of coverage.
Here’s the trick – whole life policies require their owners to pay every month for the entirety of their users’ lives. Missing just one payment can cause one’s entire lifetime’s worth of work towards securing whole life insurance policies.
Whole life policies will cover disabilities that result from events like car accidents that render people unable to work. However, these benefits are so expensive to secure that they shouldn’t be relied on.
The verdict? Term life insurance takes the proverbial cake. That’s why Freedom Life Insurance offers LifeProtect, their premier plan in a term 10 year format. Learn more about this, and other aspects of this USHealth Group provider here: https://www.crunchbase.com/organization/freedom-life-insurance-company-of-america