Life Insurance is all about peace of mind, so here are five quick tips to keep you from losing it when it’s time to put a financial back-up plan in place.
1. A Safety Net Made of Money
Not literally, because safety nets made of paper aren’t too sturdy. But it’s a way to help your family or someone close in case you suddenly, or unexpectedly...how do we put this gently...die. Consider how much money your family needs to live comfortably after you're gone.
2. Pay On Time
If you pay your monthly or annual premiums on time, the insurance company pays your family the amount of money specified in the policy if you die. Of course there’s paperwork involved and you have to do some work to get the money, but this is how it works. [Note: You can’t pay in adorable bunny rabbits. Believe us, we tried.]
3. Type 1: Term
Term Insurance covers you for a set amount of time. Example: If you have a 20-year term policy, you have to die within those 20-years for it to pay out.
4. Type 2: Permanent
Whole Life Insurance (a.k.a. Permanent) is a lot more expensive but it never expires. You either have to buy this when you’re young or have a lot of money.
5. It’s Complicated...
We’re not going to lie: Insurance is very complicated, and there are a multitude of ways you can structure your insurance to meet all your specific needs. So you’ll need an agent to help you make the right calls. [Dig Deeper: How To Choose An Agent]
Dig Deeper: All You Need To Know About Life Insurance