How will your loved ones fare financially after you’re gone? This is something you should think about and prepare for by purchasing life insurance. In fact, the perfect time to purchase life insurance is when you’re young and healthy.
If you have dependents, then you need to consider how your death will impact them emotionally and financially. They may face incredible financial hardship without your financial support. But with life insurance, you can make sure they’ll have financial help when they need it most.
When you purchase a life insurance policy, you set the amount of benefits that your beneficiary will receive. You can also choose between universal life insurance, term life insurance, or whole life insurance. Term lengths vary from ten years to lifetime coverage, depending on the type of policy you have. And the payout can be anywhere from $10,000 to $500,000 or higher.
Your beneficiary will receive the benefits soon after you die. They’ll have to present proof of your death before the insurer will issue the benefit. But these benefits can pay for burial expenses, debts or be used to invest. In either scenario, your family will benefit from the money provided by your life insurance.
It easier to get life insurance when you’re young and healthy. It’s also more affordable the younger and healthier you are. So keep this in mind if you haven’t already purchased a policy.