You may or may not need a life insurance. Do you know what’s fit for you? If you’re ever shopped for life insurance before, then you know it can be a confusing and frustrating process. There are several types of policies and thousands of different companies that you can choose from. Each type of plan has different advantages that you’ll need to consider based on your specific needs.
One of the most popular types of life insurance coverage is a term insurance policy. These plans are bought with a pre-determined expiration date after that date has passed, the plan is no longer active, which means that you won’t have insurance coverage.e
If you still want insurance protection after that date, you’ll need to apply for another plan. In most cases, a term insurance policy is going to be the best option.
There are a few situations where a term life insurance plan is not going to be the perfect fit for you and your family.
You No Longer Have Debt
One type of applicant that doesn’t need a term plan is someone that doesn’t have a ton of major debts. The primary purpose of your life insurance plan is to give your family money that they need to pay off your debts like your mortgage or student loans.
If you no longer need any huge bills or any other expenses, then you can consider skipping the term insurance policy.
If you still have sizable debts, it’s important that your family has the coverage that they need.
You Don’t Have Anyone That Relies On Your Income
The second goal of your life insurance coverage is to give your loved ones the money that they need to replace your paycheck if something tragic were to happen to you.
If you’re one of the primary income earners in your house and you have several people who rely on your salary, they would suffer financially if you were to pass away.
If you no longer have anyone that relies on your income, then you can skip a term insurance plan. Without anyone relying on your income, you can buy a much smaller plan or forgo the insurance altogether.
You Have Enough Money Saved Up
Another reason that you can skip buying a term life insurance plan is that you have enough money stashed away in your bank account to pay for any bills that your family would run into.
If you have enough money, then you can consider skipping the monthly premiums and leaving your family with the money that they would need if you were to pass away.
You Have a Whole Life Insurance Policy
An obvious reason that you may want to consider not buying a term insurance plan is to purchase a whole life insurance policy instead.
Unlike term insurance plans, whole life policies are a permanent form of coverage, which means that as long as you pay the monthly premiums, you’ll have life insurance.
These policies are a great option for anyone that doesn’t want to worry about having to reapply for coverage in the future.
Because these policies are never going to expire, they are going to be more expensive than a term plan, but that doesn’t mean that they are a bad option.
An additional advantage of these policies is that they build cash value inside of the plan. The longer that you pay the monthly premiums, the more value that’s inside of them.
You can use that value to pay the monthly premiums or use it to borrow against in the future.
Your Final Expenses Are Paid For
While most applicants don’t realize it, funerals are an expensive bill. The average funeral costs around $10,000, which can be difficult for a grieving family to cover.
Your life insurance plan will give your family the money that they need to pay for your funeral without struggling financially.
If you have enough money set aside to pay for your funeral, then you don’t need to purchase a term insurance policy.
If you do not have enough saved to make sure that your funeral doesn’t put your family in financially strain, there are affordable guaranteed issue plans that are designed just to take care of final expenses.
Term Life Insurance
Life insurance is one of the best purchases that you can ever make. You can’t put a price on the peace of mind that having life insurance will give you knowing your family will have the money that they need.
In most cases, term insurance coverage is going to be the best option, but there are a few people who shouldn’t buy one of these policies. Having the perfect life insurance is one of the best things that you can do.