As a breadwinner, do you worry all the time about the near future? The unpleasant and recurring thoughts that come to us randomly. Do you wonder what would happen to your family if something happened to you? Who will take care of them – of their financial and emotional needs? These intrusive thoughts never leave you alone, do they? In certain circumstances, you cannot shake the sense that something might happen, and your loved ones would be left to deal with everything in your absence.
If you want to guarantee the financial future of your family, investing in life insurance is the way to go. Obtaining life insurance allows you to spend your days with your loved ones without worrying about the uncertainties of life. As a result, if you want to live your life today while protecting your family’s future, here’s why you shouldn’t put off purchasing life insurance.
Continue reading to learn about a type of life insurance – what is term insurance and how it is different from the other types.
What is Life Insurance?
Life insurance is an agreement between the insurer and the policyholder that requires them to pay a death benefit to the beneficiary listed in the policy in the event of the passing of the policyholder. Hence, if you wish to protect the financial future of your loved ones after your demise, then purchasing life insurance is an essential step towards ensuring that.
What is Term Insurance?
Term insurance is one type of life insurance; let’s learn what is term insurance and how it is different from the other types. Let us have a brief look.
It is a kind of life insurance that offers coverage for a set number of years, usually 10, 20, or 30. If the policyholder dies during the policy’s term, the beneficiaries are paid a death benefit. If the policyholder lives the term, the policy expires with no payoff. Because it only provides coverage for a set period of time, term insurance is typically more affordable than other types of life insurance.
Basic life insurance, on the other hand, covers the policyholder for the rest of their life as long as premiums are paid. Universal life, whole life, and variable life are three types of life insurance. Because they provide coverage for the policyholder’s entire life and may contain a savings component, these policies frequently have higher rates than term insurance.
6 Reasons Why you Shouldn’t Delay Purchasing Life Insurance
Life insurance is a kind of financial armour that can offer financial security to your loved ones in the moment of your unexpected death. Following are a few reasons why you might want to consider buying life insurance:
- Securing Financial Future: If you are the sole breadwinner in your family, then you might have multiple dependents. Hence, to ensure a secure financial future for you and your family, life insurance should be your choice. In case of your passing, your family can pay for the funeral costs and can manage their living expenses easily with the help of the death benefit.
- Live a Fret-Free Life: Life insurance can offer peace of mind when you know that the financial well-being of your loved ones will be ensured if something happens to you. This can alleviate some of the worry and stress that comes with the uncertainty of the future.
- Help Pay Off Outstanding Debts: If you have outstanding debts, such as a mortgage or lines of credit, life insurance can assist in making sure they are paid off in the case of your death. This can help prevent your loved ones from inheriting your debts after you’re gone.
- Estate Planning: You must have spent your entire life carefully planning and managing your assets. As a result, life insurance can be used as part of your estate planning to help ensure that your assets are dispersed in the manner that you choose. A life insurance policy’s death benefit might be used to pay estate taxes or give liquidity to your heirs.
- Health Risks: Staying prepared for any health-related emergency is a must at the given time and day, especially after covid-19 pandemic. Hence, investing in life insurance while you are young and healthy is preferred considering premiums are generally lower when you’re young, so buying a policy early can help you save money in the long run.
- Unexpected Death: Death is one of the hardest pills to swallow – a truth of life that we cannot accept or prepare for. Life insurance can help with financial preparation. By delaying the purchase of life insurance, you are taking the risk that something could happen to you before you have adequate coverage in place to protect your loved ones.
Conclusion
The bottom line is that in the present time, having life insurance is essential. However, there are distinct types of life insurance policies available, so it is important to choose the one that best suits your needs and offers adequate coverage. It’s also important to consult and compare quotes from different insurance providers or brokers such as Life Insurance Brokers Ontario to ensure you’re getting the best policy at the best price.
