What Kind of Life Insurance Should I Get?

The first question that people ask when they hear about life insurance is: “Do I need it?” The question should be: “Will someone suffer financially if you die tomorrow?” If the answer is yes, then you do need life insurance. Your beneficiaries can either be your spouse, kids, parents, or siblings. They can use the money from your death benefits to pay for your funeral or fund college for your kids. And unlike other types of insurance, there is no federal income tax on life insurance.

For example, if you’re driving for a truck company, a reliable truck labor lawyer in Washington or other states can help you negotiate for better compensation and benefits. One of your demands should be for the company to provide a life insurance policy. It’s not for you. It’s for your family. Since truck drivers are on the road almost 24/7, they are subjected to a lot of health issues—mental or physical. You need to be assured that your family will get “something” if you meet with an accident.

Term Life Insurance

This type of insurance offers coverage for a specified amount of time. Usually, it’s in increments of five years. This is straightforward insurance. If you die within the period, your beneficiaries will get the money. If not, the policy will be automatically terminated after the term is over.

This is an ideal type of insurance if you need coverage for a certain period of time. Examples are when you’re paying the mortgage or when your kid is in college. It ensures that no matter what happens to you, your family will get something to continue paying off the mortgage or sending your kid to school.

It’s the most affordable type of life insurance, except for a group policy from employers. The premium is based on health, age, location, and the amount of death benefit. There’s an online calculator on most insurance company websites for you to know how much you need to pay monthly.

Permanent Life Insurance

signing insurance paper

This insurance will cover you for life as long as the premiums are paid, which you will do for some time (mostly between 10 to 15 years). You can withdraw the value of your life insurance after the 10th year, but that means that your family won’t receive anything after your death. You can also continue putting in money even after the insurance has matured. Or you can leave it be and let your family benefit from it after you die.

Permanent life insurance policies are also coupled with potential income-earning schemes. Cash building is another feature of these types of insurance. A portion of your premium will be invested in stocks, from which you can earn dividends. You can withdraw the dividends or let them earn interest over time.

There are three major types of permanent life insurance. Whole life insurance guarantees a certain death benefit and return of the cash you built. Variable life insurance provides the death benefit, but the cash value will depend on the performance of the investments. Universal life insurance refers to adjustable premiums wherein you can pay more or less as long as the cost of the insurance is covered. You have the option to pay more and receive more in the future.

Employer-sponsored Life Insurance

You usually have some type of insurance coverage when you’re employed. But you also lose coverage when you lose the job. That’s why it is better to get insurance of your own so that you’ll be in control. Employer-sponsored life insurance usually covers accidents and injuries. You can talk to your HR about expanding your life insurance benefit. You can pay a part of the premium so that you can stay covered even after you leave the company.

Life insurance should be a kind of a no-question investment. You’ll want to protect your family or any loved ones you might leave behind when you die. Besides, this isn’t only something your family you can use when you die. You can also withdraw the premium when you need it for an emergency.

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