When Should You Get Life Insurance?
Since Internet competition has come into play, life insurance rates have dropped, even though only 4% of Americans buy their policies over the World Wide Web.
What this means for you is that there is no longer any reason to plead ignorance or misinformation when it comes to obtaining a life insurance policy that is right for your needs. Though most people still buy their policies through representatives who visit their clients at home, there is no reason not to take advantage of the abundance of information concerning the variety of choices available to you.
People often make mistakes when choosing a life insurance policy because they don't want to consider what would happen if their policies actually came into play.
If you want to make an educated decision concerning life insurance, talk to your spouse and make a realistic plan for your financial situation in case of your death for 5, 10, 15, 20, and more years down the line. Of course, you don't know what is going to happen in the future, and many people outlive their own policies. The point of life insurance is to insure against what you can't predict, and to be secure in your life now.
Many people don't need life insurance and are misled into believing that it is necessary for them. If you don't have any dependents, if your spouse is financially independent, if you and your spouse have saved enough to cover costs for as long as you live, or if you are already elderly and have enough savings to be independent from anyone else, than you may not need to worry about life insurance at all.
In fact, if you are young and just building an income, it might be wise to hold off considering life insurance policy until you have saved something extra and are willing to start investing.
Life insurance is an investment like any other financial investment, so don't be squeamish—find out as much as you can before committing to a policy that may not work for you in the end.
If you do have dependents and especially if your spouse will have to stop working or take a pay cut to get time off or pay for day care, or if your spouse is dependent on your income alone, then life insurance will be crucial to your family's financial security.
Knowing the facts will make the biggest difference in your decision. A life insurance representative who gives you the most information, and a policy that gives you the most options, will be the most important things to look for when investing in life insurance.