Many people, especially the younger generation may think that life insurance is not for them but that should not stop you from reviewing your choices and maybe even settling on a policy that gives you peace of mind. You never know what is coming at you so here are a few reasons to think about getting life insurance.
The most popular and common reason for anyone wanting life insurance is the fact that your dependents will receive money in the form of income in case you die. People have plans that they would like to see through even after their time here is over. For instance, one would want their kids to go to college and their family to maintain a standard of life with minimal changes to that lifestyle.
You can opt for a term-life insurance policy which would cover you for a specific time duration – normally 10 to 30 years. Benefits are paid only during the term period. For example, you can decide whether you want the beneficiary to get the money until they are out of college. Of course you can purchase a permanent life insurance (whole life policy that will pay benefits to your family when you die.
Many people are looking for investment options for their money. They may not have that many dependents but for many young professionals having a life insurance policy is a great addition to their investment portfolio. It allows investments in mutual funds, stocks and bonds. These allow cash value to rapidly rise, even though the potential risks are present.
In the future if you find that you have a terminal illness or that you need major medical attention you can always sell your policy to a viatical settlement company and pay for the medical expenses. The settlement company makes premium payments to you and though the amount you receive is less than the amount your beneficiaries would get, if you carry on with the premium payments then the inherited amount and the lump sum cash payment can prove to be your source of cash when you do not have any other resources.
You can use a cash accumulation vehicle. This lets you allocate part of your premiums in a reserve. This money can also serve to pay your insurance premiums in the future if your income does not cover it Unlike other insurance options life insurance allow you to enjoy this flexible option.