If you are one of those people without any life insurance and have been feeling bad about it, relax. You may have been doing the right thing all along. Recently, scientists and major insurance companies teamed together to investigate why certain people do not have life insurance. Their discovery was startling and unexpected. They stumbled upon a class of people that truly do not need life insurance. After extensive interviews they discovered that if you’re immortal you don’t need life insurance. That’s right! If you have lived forever or plan on living forever than you don’t need life insurance. But if you are like the rest of us, you probably need a little life insurance. The challenge is knowing what kind of life insurance is right for you. So let’s review what’s available.
Term Life Insurance is very affordable to buy. It provides you protection for a specific period of time, hence the name ‘term’ insurance. So if you know when you are going to die term insurance is perfect! Just keep an eye on the calendar and when the time is getting close, buy your term life insurance policy. Term insurance also makes sense when you need coverage that can disappear at some point. For example, it could be used to cover the mortgage until it is paid off or any other particular debt. Or perhaps, add a little more protection until the kids are out of school. Term insurance is good for specific uses and time periods.
Whole Life Insurance or Permanent Life Insurance gives you lifelong protection. That means you can die any time and any place you want to and you will be covered, provided you have paid your premiums. Permanent Life Insurance is designed to last a lifetime and is priced that way. There are other types of permanent life insurance. For example there’s Variable Life that builds up cash reserves and Universal Life that combines term and permanent life. But they all insure the entire life. So if you don’t know when you’re going to die, permanent life insurance may be for you.
So what is the right insurance choice? That depends on your specific situation. But generally, a combination of term and permanent insurance is the right solution to protect your family. So unless you are immortal, or plan on becoming that way, a little life insurance should be part of your living.