Did you know that two thirds of Americans believe that life insurance brings peace of mind? There are several reasons people decide to get life insurance. The average funeral now costs 10,000 dollars, and this is on top of 40 percent of families reporting that they would have trouble paying for living expenses during the first month after a primary breadwinner dies. Here are four examples of life insurance tips and advice.
1. Get the insurance you need
Most life insurance policies are sold by agents, and agents profit more by selling you the most expensive insurance plans available. Choose a plan that will cover your debts, the basic needs for your family, and possibly a few other expenses, and be wary of any policy that requires you to pay a high premium.
2. Avoid unnecessary insurance policies
Most experts recommend not buying life insurance for children. There are many other ways to save money for your children to have later in life, and the only real benefit of this policy is if you have genetic family health problems, and expect that the child might have trouble getting insured later in life. Most advise putting the money that would go into baby life insurance toward future college funding instead.
3. Buy at a good time
Many people would rather skip buying life insurance, especially when they are young and do not have dependents. The advantage to waiting is that you will save money for several years. The disadvantage is that you will miss out on the low rates available to you as a young single person. Life insurance for over 50s is definitely recommended, since the statistical likelihood of dying is far greater, and most people have dependents at this time.
4. Term or whole?
For most people, buying term life insurance is the way to go. Although whole life insurance allows you to built cash up tax free, there are so many comissions and fees that bite into your investment, that you are better off letting it grow elsewhere. Term life insurance policies can usually be renewed, cancelled or altered over time. Life insurance for over 50s often comes in the form of term life policies with lowered premiums.