Deciding to invest in life insurance can be an intricate process not only in any particular country, but in most countries in general. Among the many kinds available in the market, you have to make an informed and intelligent comparison between the likes of health insurance and life insurance-these two being the most popular among the general public. Furthermore, it gets even more complex if you are trying to invest in this industry at a young age.
I know what you'll say. As a single, independent and free-spirited 25-year old like myself, what are the chances of dying from a debilitating illness or getting hit by a bus in a two-way street? Chances are, getting my life insured at this ripe point in my life is as bleak as Donald Trump's chances at winning the 2016 US Presidential elections! However, let me ask you this. If you don't have a spouse, a daughter or a son to stress on, I'm pretty sure you have loved ones in your nuclear family. An aging mother perhaps? A father? A brother or a sister?--whose future you want to secure in the event of your untimely demise or physical incapability on account of a nasty accident.
Thinking about your loved ones' future when you have gone to the Great Divide is perhaps the most touching and selfless thing you can do for them-financially providing for your dependents if you pass away. On a side note, in case of illness or hospitalization, you can get health coverage from your insurance provider without stressing your parents or family of the financial costs of hospitalization.
This is the ultimate and most conspicuous reason why you should get a life insurance as early as now. As counter-intuitive as may sound, your young age and optimum state of health now are the very factors that propel an inexpensive insurance premium on your part. Because of your young age, the risks of dying from a disease is still low, hence, you can get premium insurance coverage for a very low or inexpensive cost while at the same time ensuring the future of your beneficiaries. Your aging parents who are accustomed to a certain lifestyle, or your brother or sister who has not finished college or is still in high school will no longer have to concern themselves of their finances after you die. Simply put, your premature death won't cripple their financial security because you have made sure that they still enjoy the best of life even after you are gone.
If you are the bread winner of your family, fear not. Investing in life insurance is the first step to ensure enough coverage for their expenses by adding riders to your basic policy, depending of course on your family's needs.
What options are there for me?
Whole life insurance policies are generally more expensive and in every sense of the word, long-term investments when compared to buying a term life insurance. Whole life policies offer protection in your estate taxes in case you fall delinquent in payments while term life insurance does not. However, the latter will relatively save you more money. Term policies can be a great option for those wanting to be covered for only a limited amount of time.
Remember, the amount of the premiums you pay will greatly depend on the type of policy you purchase from the insurance company. If you are looking to save while providing protection for your health and family's future, variable life insurance might be the perfect option for you as it allows you to invest in stocks, bonds and mutual funds.
In sum, investing in life insurance needs a thorough research and understanding beforehand. Having a handful of mouths to feed in your family may be a signal fire for you to purchase one now as having financial dependents is the nucleus of this industry. You get an insurance policy and pay premiums because you want protection not only for yourself but because there are people you hold close to your heart.
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