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Life Insurance - Because You're Not Immortal
Author David Schneider | Aug 29,2007
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You've seen those life insurance ads on TV, right? The ones showing a middle-aged couple, probably doing some wholesome family activity with a couple of cute kids, like camping or fishing. (Camera holds steady on the gently-illuminated faces of the happy kids.) Then, the husband will send the children off with a football, hug his wife, turn to the camera, mention how great his family is and ask if you've made preparations for your loved ones. Then you hit fast-forward on the TiVo remote, if you haven't done it already, because you're too young to think about life insurance.
Everyone Needs Life Insurance
You're not too young, though, because the fact remains that everyone will need this type of insurance at some point. It doesn't matter if you're 18 or 81 - you still need to plan for unforeseeable events in the future, and make sure your loved ones are cared for in the even of an accident. There are many details to take care of in the event of your death; resolving your debts, making funeral arrangements and providing for your loved ones are just a few. You can ensure these are handled with care, and have peace of mind in knowing that it can be done for less than your weekly coffee bill.
Statistics and Your Policy Rates
If you've never heard of a mortality table, (or 'life table') it's a statistical analysis of your chances of making it to your next birthday. It's not on insurance company advertisements - they want you to think business is done through fatherly chats with concerned looks. The science of life insurance is based on the mortality table, which gauges the risks inherent to covering your life.
The good thing about a mortality table is that it shows that the younger you are, the greater your chances of life. And this is good because it means that the earlier you start getting life insurance, the cheaper it is, which lets you spend your money on the fun you're having while you're still here. There are even life insurance policies, called Universal Life Insurance, that stand as significant investment opportunities for the insured.
Access to Needed Funds
There are some life insurance policies of which the insured can be the beneficiary. With certain types of Whole Life Insurance you can receive your money in the case that you contract a terminal illness. This allows you to spend money while spending your last days on Earth. You can travel the world, give to charity or distribute it to family and friends. But if you're looking for very inexpensive life insurance that can payout to a beneficiary after your death, look into Term Life Insurance. You can't get it if you're already sick, but you can usually buy it from year to year, and the payment will more than cover debts you've incurred in the land of the living - it can even cover mortgages and send people through college. |
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