What happens to your family’s finances if you die? It’s a thought most people don’t want to entertain, but it’s important that they do. After all, the fact of the matter is that life insurance exists because people have died and people need the money to take care of the families they left behind when they did. For this reason, it’s crucial that you get the best premium life insurance you can so that your loved ones are taken care of even if you aren’t around anymore.


What is life insurance?

Life insurance is a contract between you and an insurance company. When you die, the policy pays out a benefit to your family. The amount of the payment is determined by how much they pay in premiums while you are alive. There are two types of life insurance: term and permanent. Term life insurance policies last for a specific period of time, typically 10, 20 or 30 years. Permanent life insurance lasts as long as the policyholder lives. Most people choose to buy either term or permanent life insurance policies, but it’s best to have both if you can afford it because most people don’t know what will happen in their lifetime. Term life insurance pays benefits when someone dies within a set number of years; whereas, permanent life insurance pays benefits when someone dies at any age. One reason why so many people decide not to buy this type of protection is that they believe they are too young to be in need of such protection- which couldn't be further from the truth. It's never too early to start thinking about buying this type of coverage for you and your loved ones- some companies even offer special rates for younger adults.


Why do I need it?

Premium life insurance is significantly more expensive than basic coverage, but it pays off in the event of a death. It provides your family with the financial security that they need if something were to happen to you. If anything happened to me and I had not taken out this type of insurance, my family would have been left without an income and without any money coming in. I'm so glad I did because there is no telling what could have happened if I had not done this. My husband was injured in a car accident last year and his injuries put him out of work for nearly six months. Without our premium life insurance policy we wouldn't have been able to cover all of our living expenses or medical bills. Thank goodness he's doing better now, but we will never be able to live without this protection again! You should always make sure that your family has life insurance too. They won't want for anything in the event of your death when you take care of them like this. Think about how difficult things would be on your loved ones if you died unexpectedly. Even though it might seem like a lot of money at first, everyone needs this level of coverage to protect themselves from the unexpected.


Who needs it?

Everyone needs life insurance, but some people more than others. If you have a spouse or children with special needs, then you will want to look into getting a policy that can cover their future costs and provide financial stability to your family. If you are retired and on a fixed income, then you might not need life insurance as much because Social Security can help cover some of those costs. But if you are still working, then it's good to have a policy in case anything happens to you. What kind of policies do I need?: There are many different kinds of life insurance policies, so make sure you figure out which one is right for you before buying one. For example, whole-life is meant to last the whole time the insured person is alive while term lasts until the end of the term (usually 10-20 years). So if someone has a 10 year term life insurance policy, they will get paid when they die after 10 years. On the other hand, if someone has a 30 year term life insurance policy, they'll only be covered for 30 years. Permanent type policies usually last the entire lifetime of the insured party, but there is no expiration date like there would be with term.


How much do I need?

First, you need to know how much insurance is necessary to cover your family's financial obligations. The easiest way to do this is by calculating your net worth. To do this, take the total value of your assets and subtract the total amount of debt you have. If you have a positive number, then that means that you have more than enough life insurance coverage. If not, then it's time to beef up your coverage by purchasing more life insurance. You may want to talk with an advisor about what type of life insurance policy would be best for you and your family, such as term or permanent. Term life insurance only covers you for a set period of time; on the other hand, permanent (or whole) life will last until either you pass away or decide to cash in the policy. Permanent life insurance usually pays out a death benefit to your beneficiaries when you die, so they can live off the proceeds for the rest of their lives. Term life insurance, on the other hand, does not have any cash value once you die but does provide protection from loss of income because it pays out a death benefit if you happen to die during the term.


Who sells it?

Do you have a family that depends on you to provide for them? Do you have children who need their parent's love and care? If so, then it is important that you protect your loved ones with life insurance.

Life insurance can help replace income, pay off debts and provide funds to cover the costs of funeral arrangements when the unexpected happens. Not only does life insurance offer financial protection, but it also provides emotional support as well. When someone loses a loved one, it can be difficult to move forward with daily tasks such as caring for the home or paying bills. With life insurance in place, survivors don't have to worry about these things because the money is already taken care of. One of the great benefits of life insurance is peace of mind. It helps survivors know that they will always be able to take care of their loved ones without fear. They are able to live day-to-day knowing that if something were to happen to them, there would be enough money for their family members. There are many types of life insurance policies out there including term and whole life policies; each offering different levels of coverage. A term policy might suit an individual best if they plan to retire soon. A whole life policy might suit someone best who has dependents and wants long-term security for their family. There are no bad choices when it comes to life insurance, but what matters most is making sure you're covered by some type of plan. 

You may think that purchasing a policy isn't worth the cost but consider this: what price do you put on your loved ones? How much do you value their happiness?