Finding the right life insurance policy can seem daunting, especially because our lives keep changing. Certain life events like getting married, starting a family and buying a home can raise concerns about how our loved ones would fare if we were no longer there to help financially support them.
And yet many people procrastinate, because it’s difficult to contemplate their own mortality. It can help, says Frank Muscat, assistant vice president at Amica Life Insurance, to think of life insurance as a gift.
“Buying life insurance is really a selfless act because it’s not for you,” he says. “It doesn’t protect the person who buys the insurance, it’s for the people they leave behind.”
In general, there are two types of life insurance: term and permanent. Term life insurance gives you protection for a specific period of time – usually 10 to 30 years. It’s good for temporary or time-sensitive needs, such as funding your children’s education if you were to die. Compare that to permanent life insurance, which gives you lifetime coverage. Permanent life insurance also usually builds cash value over time. And it can cover more long-term needs, such as making sure your estate has liquidity to cover final and emergency expenses.
Sometimes, a combination of term and permanent insurance makes the most sense. “The questions you need to ask and answer are: How much insurance do you need and what do you need it to accomplish? That way you can tailor the policy to your needs,” Muscat says.
Here are three reasons why the right life insurance matters:
You’re young and healthy. According to a 2017 LIMRA Insurance Barometer Study, most people think the cost of term life insurance for a healthy 30-year-old is three times higher than it actually is. Life insurance is relatively affordable, especially if you buy when you’re younger and healthier.
“Life insurance can be surprisingly inexpensive for younger people,” Muscat says. “You can secure your future insurability by buying it today. The premium won’t change for the duration of the term regardless of what happens to your health in the future - It’s guaranteed to stay fixed for the life of your policy.”
You’ve just had a baby. Whether you’re a single parent, a stay-at-home parent or one who works outside the home, it’s important to have life insurance to help cover expenses such as childcare or a college education.
“When you look at your new baby, he or she is the most vulnerable person in your world,” Muscat says. “You do everything to protect them, from buying the right car seat to making sure they eat healthy food. Buying life insurance is just another kind of protection. It’s a way of making sure that, financially, your child’s life is secure.”
You’ve just bought a home. For most people, buying a home is the biggest purchase they’ll ever make. And with that investment comes a huge financial obligation to the mortgage company.
“What life insurance can do is help make sure your family stays in the home if something happens to you,” Muscat says. “It’s not just about being able to pay for a house. It’s about keeping your family in the home you worked so hard to get.”
Amica Life offers affordable Term Life insurance rates, making it easy to find coverage that meets your budget. When you purchase Amica life insurance, you may be eligible for a discount on your Amica auto policy.* Visit AmicaQuote.com today to get a quote.
Diana McKeon Charkalis is a Yahoo Storyteller. Her work has also appeared in USA TODAY, Prevention and The LA Daily News.
* Discount applied to your Amica auto insurance policy. Coverage options and discounts may not be available in all states.
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