Life Insurance
In every family unit, there remains a risk that a family member will die and, as a result, the surviving family members will incur certain expenses and be left without the main breadwinner to support the family. A recent review of funeral costs indicate that a moderately priced funeral and memorial service will start at about $10,000 and according to the National Funeral Directors Association, we can expect prices to double over the next ten years. Knowing this, every family should prepare for these costs and the most economical way is with life insurance.
The best and simplest way to prepare for the worst to happen is with a life insurance policy purchased from a highly rated and reputable company. The most economical way is with a Level Term insurance policy. Term insurance is very economical because you are paying only for the cost of insurance plus the policy fee for the term of the policy that you selected. This type of policy is offered in terms of 10 years up to 30 years. In most cases, when the term is about to expire, the company will offer a renewal policy based on the age of the insured at that time. Yes, the renewal will be higher but, the insured is still only paying the cost of insurance plus a policy fee. In many cases, you may not need the same amount of insurance at renewal. Therefore, the face amount can be reduced which will result in a lower premium.
Providing coverage for the family is very economical with a Term Insurance Policy. The named insured (typically the head of the household) is the name the policy is written for. The spouse can then be listed as an additional insured that can be a different amount if requested. Many companies will also allow the children to be covered by using the Child Term Rider, which is an efficient way to have all family members covered. By using the Child Term Rider, the policy fee that would be included on a separate policy for each child is eliminated. If the company does not offer this rider, then simply take out separate policies on the children since the cost will be minimal. Most parents are reluctant to discuss insurance for the children, and that is certainly understandable. But the fact remains that Term Insurance on a child or teenager is priced very low so why take the chance of having to pay out of pocket for funeral expenses if the worst should happen. It would be hard enough to deal with the grief of your child passing and then having to borrow money to pay for a funeral and memorial. Or even worse, having to ask other family members to contribute because you were not prepared.
Certainly, life insurance is not just for families. Unmarried people should also make certain that their final expenses are not passed onto surviving friends or family in the event of their death. Take just a few minutes and contact us so that we can discuss your insurance needs and assist you in making an informed decision about your life insurance.