Why Everyone 18 And Older Should Have Cheap Life Insurance
Life insurance is an insurance policy that pays cash upon a specific person’s death. It’s insurance against loss of life. The most common type of life insurance, Term Life Insurance, lasts for a fixed number of years, and asks for lower annual premiums as compared to other life insurance types.
Why Do People Buy Life Insurance?
Life insurance is an insurance policy which sends cash payments upon a specific person’s death. Payments can range from thousands of dollars to millions of dollars.
Life insurance cash can be sent to any person, or anything.
Life insurance is protection against the money-related hardships that death can sometimes cause. It can also preserve your personal legacy.
The most common type of life insurance policy is term life insurance.
“Term life”, as it’s often called, is inexpensive and easy to understand as compared to other insurance types. It’s also popular among the young and healthy.
Every person should have at least a small insurance policy in their name to pay for the costs of a funeral, or to pay off student loans upon an unexpected death.
Life insurance is for everyone.
Calculate How Much Life Insurance You Need
Have Children? Buy Life Insurance.
Children depend on adults. They depend on adults for food, shelter, support, and more. These needs can be met with a proper life insurance policy in place.
When a parent dies, life insurance makes sure that the home gets paid off; that money for education is set aside; and, that nobody grows up broke.
Life insurance can also be used to set up a trust, which helps to preserve a family’s assets and protect it from taxes.
There’s no amount too small to set up your first trust.
Even before you have kids, life insurance is essential. It’s not dramatic to say your family’s future depends on it.
Your family can endure with life insurance. The day you find out you’re expecting should be the day you get quoted for term life. Insurance is cheap. The returns are huge.
Have Live-In Parents? Buy Life Insurance.
Live-in parents depend on their adult children. What if their children died?
When you’re retired or nearing retirement and living off your savings, you’re sometimes slowed by sickness or old age and require part- or full-time care.
Life insurance preserves your live-in parent’s quality of life.
Should you die before your parent, the cash payment from your term life insurance policy can pay off your home loan and pay off your debts; and leave enough money left over to pay for full-time, in-home care for a parent.
Your parent can stay-in-place and have sufficient money to live.
Life insurance protects your loved ones.
Married, Engaged, or Living Together? Buy Life Insurance.
Couples who live together should purchase life insurance.
It doesn’t matter whether you’re a husband or wife, a boyfriend or girlfriend, a fiance or fiancee, a partner, or “a friend”.
When two or more people are named on a house and one of those people dies, the household’s debt obligations pass to those who survived. It’s not like the mortgage can be canceled, after all.
Life insurance makes it easy to move forward. Life insurance can pay off the house.
This is why coupled households with no children, no live-in parents, and no dependents reach for life insurance. Should one person die, the insurance policy’s cash can pay off the mortgage and other shared debts.
Life insurance reduces the burden on your loved ones when you die. And it only costs a few dollars each month.
Single? Buy Life Insurance
If you’re 18 years or older, you should still consider life insurance — especially if you plan ahead for your future.
Life insurance gets more expensive as you age
Life insurance costs rise as you get older.
When you’re young, you can lock in a cheap rate for 20 years or more. As you age, the costs of life insurance rise.
A person in their 20s will pay half as much for term life insurance as compared to a person in their 40s.
It can be smart to buy your first million-dollar policy when you’re young and relatively healthy. It pays to get your term life coverage in place early.
Life insurance pays off your student loans
And even if you remain single, it’s good to have the policy.
Single people use life insurance as a way to cover the costs of a funeral; to ensure the future care for a parent; and, to preserve a personal legacy.
You can pay off debts with life insurance, too.
Remember: when you die, your obligations to the bank do not. Those debts survive, and the responsibility to pay back your loans can fall to your family, and to people dear to you.
The payments on your student loans, credit cards, and car loans, for example; the payments on your home — they create unexpected burdens on the people that you care about.
Those debts can push another person’s life into chaos, which is one reason why life insurance is common among people who are single.
Life Insurance For Singles
Life insurance is a way to give back to your parents
Life insurance can also guarantee the long-term care of a parent.
When you die, the cash payment from your life insurance policy can be used today — or in the future — to pay for long-term in-home care, relocation assistance to an elderly care facility, or for any other purpose that’s meaningful.
Click here for information on caring for a parent.
Life insurance can establish your personal legacy
And, you can use your life insurance policy to establish a personal legacy.
For example, if there is an organization that is close to your heart, you can direct your life insurer to send a cash deposit to the group upon your death.
You may have a favorite charity or alumni group, for example; or, you may wish to establish a scholarship in your name somewhere.
All of this can be achieved using life insurance.
How Much Life Insurance Do I Need?
For a person buying life insurance, the first question is usually “How much life insurance do I need?”.
The answer is that it depends. It depends on what you’re trying to insure, and how you envision the future.
At minimum, it’s a good idea to insure your life for the amount of your debts, plus the cost of a funeral service, which averages near $7,000.
If you owe fifty thousand dollars in student loans and credit cards, then, you should insure your life for no less than fifty-seven thousand dollars.
You may want additional coverage over the minimum, however — especially if there are people in your life who depend on your income and your money.
A safe approach to answering “How much life insurance do I need” comes from the answer to three quick questions:
- How much do I think I’ll earn over the next 12 months?
- How much do I owe in total, as of today?
- How many children do I have?
We can use these answers to get a pretty good idea of how much life insurance is enough.
How Much Does Life Insurance Cost?
Term life insurance is inexpensive. Especially considering how much cash it can pay out.
Term life is far less expensive than other insurance types, too, including auto insurance and homeowners insurance. This is because people are living longer and outliving their term life policies.
Just two percent of term life policies are ever paid out, it’s estimated.
This makes term life insurance cheap.
If you’re in your 20s or 30s, it’s reasonable to get a 20-year term life insurance policy that pays $500,000 upon your death for something near $25 per month.
That’s a huge return on your costs.
Even at higher coverage amounts, term life remains cheap.
- $1,000,000 might cost near $35 per month
- $2,000,000 might cost near $65 per month
- $3,000,000 might cost near $100 per month
Costs are subject to lifestyle and your age. Your heart health and your status as a cigarette smoker come into play, too.
This is why it’s smart to buy term life insurance when you’re still young — before you think you need it.
How Do I Get Life Insurance?
Cheap term life insurance makes it possible to protect your loved ones, and to provide for their futures. Even better? Term life is cheap.