Saturday, 23 December 2017

see reason why life insurance matters



Finding the right life insurance policy can seem daunting, especially because our lives keep changing. Certain life events like getting married, starting a family and buying a home can raise concerns about how our loved ones would fare if we were no longer there to help financially support them.
And yet many people procrastinate, because it’s difficult to contemplate their own mortality. It can help, says Frank Muscat, assistant vice president at Amica Life Insurance, to think of life insurance as a gift.
“Buying life insurance is really a selfless act because it’s not for you,” he says. “It doesn’t protect the person who buys the insurance, it’s for the people they leave behind.”
In general, there are two types of life insurance: term and permanent. Term life insurance gives you protection for a specific period of time – usually 10 to 30 years. It’s good for temporary or time-sensitive needs, such as funding your children’s education if you were to die. Compare that to permanent life insurance, which gives you lifetime coverage. Permanent life insurance also usually builds cash value over time. And it can cover more long-term needs, such as making sure your estate has liquidity to cover final and emergency expenses.
Sometimes, a combination of term and permanent insurance makes the most sense. “The questions you need to ask and answer are: How much insurance do you need and what do you need it to accomplish? That way you can tailor the policy to your needs,” Muscat says.
Here are three reasons why the right life insurance matters:
You’re young and healthy. According to a 2017 LIMRA Insurance Barometer Study, most people think the cost of term life insurance for a healthy 30-year-old is three times higher than it actually is. Life insurance is relatively affordable, especially if you buy when you’re younger and healthier.