How much is your life worth? Sure, to your young family there is no finite amount; however, the rest of the world believes there is a price on your head. Well, at least one when you pass away or require care due to a disability or failing health. This is what insurance companies around the world believe and do their darndest to sell.
The insurance industry is huge. Much of it is stereotyped in the form of sad or sleazy insurance salespeople you normally see in television or movies. They’re the ones that try to tell you the world could end at a moment’s notice and you need such-and-such insurance in order to secure your family. First, if the would was about to end, insurance would be a moot point to your family. Second, there’s more to insurance, including time frames, premiums, and whether or not you want your insurance policy to be an investment.
Yes, it can be a daunting task for a couple just starting out in their marriage. And yet, making a decision on the type of insurance you need is a very important part of maintaining a healthy family. Here are some times of insurance that you may or may not need.
Term Life Insurance
Call this insurance rental. For a low monthly payment you are guaranteed a certain amount of money at the time of your, your spouse’s, or a child’s death. What this amount is depends on what you decide. Many experts recommend establishing a life insurance policy eight to ten times your current salary. This could be a low or high amount depending on your current rate of pay.
Whole Life Insurance
This version is considered more of an investment than an insurance policy, and the investment is considered poor by many. Customers still pay a fairly low monthly fee which is then added to the policy. The difference between term and whole life policies is you do not get the full amount of the whole policy at the time of death if it’s not paid in full. For example, a $20,000 policy won’t give the total amount if only $15,000 is invested. It’s recommended to get out of this type of life insurance and switch to a term program if at all possible.
Long Term Care Insurance
This type of insurance comes in handy when a loved one needs to be placed in a rehab center, nursing home or hospice due to failing health. Investing in this type of policy may prevent you from paying out large sums of money to help a spouse or other family member recover from a serious health matter or be as comfortable as possible before their passing. This type of insurance needs to be purchased earlier in one’s life in order to provide a huge premium payment.