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Life insurance is often considered a good financial investment for adults of various ages. For a minimal fee to a provider each month, policyholders can gain financial security for loved ones and potential cash value for themselves in his lifetime.
The benefits of life insurance are substantial, especially considering that coverage amounts can be worth hundreds of thousands of dollars or even more than $1 million.
That said, not all investments are the same. The benefits for one policyholder may not be as beneficial as for another. Therefore, it is worth doing your research to determine if life insurance is really worthwhile for you and your loved ones.
You can start by getting a free quote online now so you know exactly what to expect.
How to know life insurance is worth it
As with most personal finance considerations, there is no standard recommendation. The value of life insurance is related to a variety of factors. However, it is often worth it if:
You are young and healthy
When it comes to getting the most out of your money, it pays to take out a life insurance policy when you’re young and healthy. Life insurance does not become cheaper with age – in fact, it only increases as health problems become more frequent and the risk of beneficiaries cashing in a policy becomes more realistic. These risks will result in a higher monthly premium.
But if you’re young, healthy and ready to pass a medical examination to prove it, you can often get substantial coverage for minimal cost. A term life insurance policy for $1 million, for example, could be provided for less than $100 per month (or maybe even cheaper). In this case, the cost-benefit analysis shows that life insurance is worth it.
Explore your life insurance options online now.
You have dependents financially
If you’re single and financially independent and no one is counting on you, you may be able to skip life insurance – or just rely on the life insurance provided by the employer you may already have.
However, if you are married and have children, or if you are married without children, or if you have children and are not married, you should have life insurance, and probably a significant amount. In short: if other people are relying on you financially, you will need the protection offered by life insurance to ensure that these people will be covered in your absence.
If you can rely on a life insurance policy to pay for the utility bills, school fees, and food and clothing purchases you currently pay for your dependents, it’s worth getting. .
You have a mortgage
Home loans are traditionally granted over 15 and 30 years. Crunch the numbers. Will your employer-provided plan be enough to cover what you owe to the bank and will owe to the bank in the years and decades to come? Or are you comfortable with people in your house downsizing to a more affordable alternative in your absence?
If you want to minimize disruption and leave your hard-earned real estate investment to your beneficiaries, a life insurance policy is invaluable. Just make sure you get a protection amount proportional to your outstanding mortgage balance.
Start exploring your options using the table below.
The bottom line
The above list is not exhaustive and should not be taken as a definitive checklist for when you should or should not buy life insurance. But, if you fall into one or more of the above categories, you need to act now while you can still potentially lock in a low rate.
Start comparing life insurance rates and providers online now.