5 Important Facts About Life Insurance

Life insurance can seem like a daunting subject to think about, let alone something to actively seek out. Misconceptions and dark connotations can make life insurance a murky and seemingly grim concept to look into, but purchasing this type of insurance can bring about peace of mind for you and your loved ones.

Planning for any prospective future should include what should happen to you after death, so you can better protect yourself and provide the comfort of security to whomever you may leave behind. Before you make any decisions, here are 5 important facts you should know about life insurance.

1. Life Insurance can be inexpensive

One major misconception about life insurance is that it is unaffordable for the average person. While the cost will depend on many factors (general health, age, gender, etc.), the amount afforded to most young people can be surprisingly affordable.

If you are unsure where you stand in terms of how much you would be paying monthly, contact a professional insurance agent and start asking questions! Many young people vastly overestimate the cost to gain coverage when, in reality, life insurance can be cheaper than a phone bill or the cost of paying for multiple streaming services a month.

2. You can and should get life insurance when you’re young

Another misconception about life insurance is that it tends to be purchased by older people. While it is wise for a person of any age to obtain life insurance, it is especially smart to look into it when you are young and healthy. Age and health will always be imperative factors with premiums, and when you are young and less likely to suffer from health issues, you will be paying less for premiums.

As you age, the premiums afforded to you will begin to rise. While you may not believe you need such services when you feel young and robust, it could help your wallet in the long run if you look into life insurance today.

3. The ability to receive coverage

Most people believe that the ability to receive life insurance coverage is seemingly dependent on whether you are healthy or not. However, this is yet another misconception based on disproved assumptions. If you suffer from a common and perpetual ailment, you can find an insurance company that would be willing to give you coverage.

If one company rejects you, then many more can be looked into. Though you may have to pay higher premiums, searching for a life insurance company willing to take you on is essential for everyone, no matter the health status.

4. Know the difference between term insurance and whole life insurance

Before buying into life insurance, understanding the difference between term and whole life insurance can be necessary to carry with you before making a decision. Term insurance means you receive coverage for a set period (anywhere from 10-30 years) and is meant to financially set up your beneficiaries in case of sudden and unexpected death.

The benefits of term insurance can be less certain than whole insurance, as it is short-term and inexpensive coverage. However, in turn, it can be a more accessible plan to purchase for most young people.

Whole insurance is more permanent and is meant to cover you for an entire lifetime, making it more expensive. Whole insurance, though, means that payment is more certain after death. Inquiring about term and whole coverage plans with an insurance company like James Campbell Insurance can bring about more clarity before investing.

5. Employee benefits do not cover everything

Although many believe employee benefits cover your life insurance, that may not always be the case. If you do receive employee benefits, the coverage is dependent on your job security. If your job status shifts, your coverage will be gone.

As work might not always be a guarantee, investing in individual life insurance can save you from a lot of difficulty down the road if you change jobs. Further, looking into what your employee benefits cover can also help determine if it’s sufficient for you or not.

Think It Through

Ascertaining the benefits of life insurance can be a surefire way to sift through many misconceptions and falsehoods. The monthly costs of life insurance, the ability to get it while you’re young or sick, the differences between plans, and the varied coverage of employee benefits are all functions of life insurance that should be known before purchasing a plan.

Therefore, thinking about buying life insurance is a decision that should not be taken lightly, and fully informing yourself with facts is a great first step in achieving financial security for your loved ones.

For more information on life insurance, please call James Campbell Insurance at 1-833-459-1065 or contact us online here.