Preparing for the end of life is something that many people prefer to avoid or delay, but it should be addressed promptly. Buying life insurance is one of the most common steps that many people take to prepare for the end of life. When you pass away, you may leave behind surviving dependents who rely on you for financial support. The loss of your income could be financially devastating to your loved ones, and life coverage provides you with a way to continue to support your dependents after your passing. Because your death date cannot be predicted, buying coverage as soon as possible is important.
When you purchase life coverage, you first need to decide between term and whole life coverage. Term coverage expires after a predetermined number of years. Common term lengths range between ten and 30 years. Whole life coverage, on the other hand, may remain in place for decades until the end of your life. The cost of term life is typically more affordable, but costs for both policy types are based on your age, health status and other factors.
Then, you must decide on the benefits amount that you would like to provide to your loved ones. Benefits may be used to pay for funeral expenses, to supplement lost wages, to pay off large debts and more. Some people provide loved ones with enough benefits to pay for a college education or for a surviving spouse to retire on. In order to decide on a benefits amount that is ideal for your beneficiaries, you should consider how your loved ones can best use the money that you leave to them.
Life insurance can be purchased for yourself, and you can also buy coverage for your spouse, your children and others. Death will inevitably result in funeral costs and other expenses, and a small life policy may be used to pay for these expenses for any of your loved ones. Spend time determining how the loss of each family member may impact your life and finances in order to decide if you should buy coverage for them.