There are many people who do not carry a life insurance policy. Some believe that there is no need for a policy, especially if they are not leaving behind any dependents that are relying on the person’s income. Others feel that the only purpose of a life insurance plan is to provide funds for a burial when the time comes.
There are people who have prepaid their burial expenses and feel that this is sufficient. There are others who have opted for cremation, which is very popular today and much less expensive than a traditional burial involving funeral home visits, a religious service, and a cemetery plot. Of course, there are others who might like to have a life insurance policy but believe that it would not fit into their budgets. If they have a family depending on their income, they know that life insurance would be beneficial to everyone, but they may have to do without it anyway.
Many people who do have life insurance have coverage as a benefit from the employer. In these cases, the life insurance is typically a percentage of the employee’s annual salary. The percentage may increase based on years of experience, position in the company, or even if you pass away while at work, or while traveling for work. If you had life insurance through your employer, but have been laid off recently, it may be worthwhile to investigate if you can maintain the policy by paying the premium yourself.
Many people, however, do have life insurance policies as a means of protecting their spouse and children from financial devastation, should something happen to the head of the household. There are a variety of policies available. In general, a potential insured will choose either a whole life policy or a term policy. A whole life policy is one that accumulates value over the years while covering your life for the face amount of the policy.
Term life policies are policies that only provide coverage for a pre-determined term. Term life policies do tend to be cheaper than whole life policies, but again, the amount you pay monthly depends on your life expectancy, current age, and overall health. When the term of the policy expires, you must purchase a new term, typically at an increased rate. No matter which policy you choose, the younger and healthier you are when you purchase, the less you will pay.
After you have decided on the type of life insurance policy that you want to take out, and the value of the policy that you want, you can then begin to contact agents, brokers, or utilize the internet to find the best rates available to you.