Life insurance is not the type of product that people wake up every morning and think about. In fact, some may never consider it, because the urge to undergo the process of implementing a life insurance policy takes too much time, it may seem overwhelming, or a policy may not seem necessary.
Life insurance is not a fun conversation, but you may find that it is worth investing in a policy to make sure your family, dependents, business and legacy will remain protected in case that something happens to you.
Life Insurance is expensive.
Some life insurance policies can have more expensive premiums. However, term policies are inexpensive, especially when you are young and healthy.
If you are young and healthy you don’t need it.
Life insurance is going to cost the least when you are young and healthy, since you are less likely to develop health problems now versus 20/30 years from now. If you are considering a policy at a later point in your life, where you could expect to see the cost go up, now may be a good time to review your options!
If you have health issues, you can’t get it.
Different companies offer a variety of options to cover different health conditions, and some also specialize in covering high risk individuals. While your health issues may not stop you from obtaining life insurance, it could have an impact on the coverage limits and cost for coverage.
You should save for retirement instead of buying life insurance.
Saving for retirement is extremely important – no argument there. However, the purpose of a life insurance policy focuses on a different component of your financial plan. Life insurance helps pay for debt and expenses and protects your loved ones/business/dependents, should you pass away. In addition, it can usually be purchased at a reasonable price and avoid interfering with your savings habits.
Are you someone who doesn’t feel that life insurance is a necessity? You may be right in your reasoning as there are times where investing your money into something else rather than in a life insurance policy makes more sense. However, if you are debating on whether it is necessary or not, you can ask yourself a few of the following questions:
- Do I have kids?
- Am I married/getting married?
- Do I financially support my aging parents?
- Do I have debt?
- Am I self-employed?
- Is my current job considered to be high risk (i.e. Construction, aviation, firefighting, mining, etc.)?
- Do I participate in extreme sports or hobbies?
With life insurance, there a variety of options available based on your age, health, needs, etc. With the help of a financial advisor, finding the best policy can be made very easy! Should you have any questions about pursuing a life insurance policy, having enough coverage or choosing the right product, please feel free to contact Tycor to speak with one of our financial advisors.