Personal insurance, often called life insurance, offers cash benefits to your dependents if you die. That money replaces your income and could be used for anything, including:
· Living expenses
· Funeral expenses
· College tuition
· Everyday bills
· Mortgage payments
This benefit protects your family and financial health. Plus, you can sometimes add other features or make changes as life progresses.
The Financial Benefits:
When you purchase personal insurance, you can help your family cover the basics and boost their standard of living.
It’s often best to go for 10 to 30 times your income in insurance if you can afford it. That amount ensures that the beneficiaries are covered for longer periods.
The insurance benefits get paid out as a lump sum of cash, which is tax-free in most cases. Therefore, the family can use it for almost anything, such as:
· Vacations
· Everyday expenditures (healthcare, transportation, food)
· Replacing the financial support lost when you passed
· Childcare
· Existing and future college costs for the children
· Housing costs (paying rent or a mortgage)
· Other debts (student debt, car payments, credit cards, etc.)
Why Consider Term Life Insurance
Term life insurance is one of the most popular insurance options because it’s affordable, straightforward, and lasts for as long as you require. Most people need between 10 and 40 years. You can even pay premiums annually or monthly. Plus, there are low rates, and the beneficiary receives a lump sum of cash if you die while the policy is in place.
What Is Term Life Insurance?
Term life insurance offers financial protection for your family during a specific time frame (term) before it expires. If you pass before it ends, the beneficiary receives the death benefit to cover bills and anything else.
How Does It Work?
Permanent life insurance lasts throughout your life and features a cash value. However, term life insurance is cost-effective and easily managed. You’re allowed to renew the policy after the term ends or let it expire because you no longer need it.
The premiums you pay are based on various factors, such as your overall health, policy choice, gender, and age. Choose the coverage amount and length you need so that you don’t overpay.
Types Available
There are often different types of term life insurance available. Some might not require you to get a medical exam, and others only ask questions about your health. You might find options with a decreasing term, so the premium stays the same, and the death benefit goes down as you age.
Some policies have age requirements. For example, you might not be eligible before age 18 or after age 50. They often require you to have no history of cancer, heart disease, or life-threatening illnesses. You may also be disqualified if you use/abuse alcohol or drugs or participate in a dangerous lifestyle.
Who Needs Term Life Insurance?
Term life policies are ideal for most people because they’re budget-friendly and simple. Many times, you can apply online and get a quote in minutes.
Typically, they are best for people who eventually plan to pay off their debts, build their retirement savings, and be at a point where others don’t depend on their income.
Reasons to Consider this Kind of Insurance:
The primary reasons to think about term life insurance include:
· Low cost – Compared to other insurance types, term life rates are cheaper. Therefore, you can easily keep the policy active, save or invest in your retirement account, and live comfortably.
· Flexibility – You can often find customised coverage amounts and term lengths, allowing you to create a plan that meets your needs.
· No cancellation penalties – Some policies charge you to cancel or stop paying your premiums. However, there are no penalties or fees if you cancel term life coverage. When you no longer need it, you can end the contract.
· Straightforward – Cash value policies often have high interest rates, fees, and other features you must manage. However, term life insurance doesn’t, so it’s easy to use it for its primary function.
Conclusion
Is personal insurance something you should consider? Generally, everyone should have a policy that protects their loved ones if something were to happen. When people pass away, they often leave medical bills, debt, mortgages, and funeral expenses that their families can’t pay.
Instead of being a burden, you can get the insurance for yourself through Bubblegum. Download the app now or call to talk to a representative.
