Why YOU Need Life Insurance NOW!
The goal here is to get you to get some form of life in insurance, preferably a Term Life Insurance policy, if possible, immediately. I'm no life insurance expert. I've just been covered for about the last 20+ years, in some form or another, so I believe in life insurance and I understand it, and it's importance.
Remember this: Whole life insurance covers you for entire life, but most people don't need insurance for their entire lifetime because the purpose is to cover your income in case you perish. It's replacement income, but when you are not supporting kids and loved ones, its no longer necessary. The goal is for you to be wealthy enough to self-insure yourself. If you have a couple million dollars in the bank, you don't need a life insurance policy. Whole life insurance is also incredibly expensive and you will be paying a much higher monthly payment (like 8 or 9 times higher monthly rate). Also, whole life insurance is not a place to store or grow your money. Without diving into a lot of technical terms, lets just say your rate of return is poor on cash value life insurance policies. Generally speaking, whole life policies are neither feasible, nor practical, for most people.. Most industry leaders will tell you that you are going to come out light years ahead if you buy term life insurance and invest the difference between what you pay for term and what you would have paid on the whole life policy.
Why Term life insurance: I could write a book about this, but lets keep it short and simple. First, It's much cheaper. I mean MUCH cheaper. You get much more coverage for the same premium payment. Or put another way, you pay a lot less for the same coverage. There is no built in gimmicks or tricks in a term life policy. It is what it is and you get what you are paying for. There is no investment component and so it's straightforward. You can vary the term from 10 years to 30 years, however long you feel like you want the coverage. The only people that don't tell you to get Term, are the people that sell, and make big commissions, off the whole life policies. That alone should tell you that you, the consumer, will benefit more from a Term life policy.
If you don't currently have life insurance coverage, please stop reading this, and look up an insurance broker, and make a phone call right now. They will gladly give you quotes over the phone. Always use a broker because they can find me the best rates, they are not "captured agents", and the whole point of a broker is to shop around. I personally have a Term Life policy on myself and my wife that is a hefty enough amount to cover our income and replace it fully. In general, experts say you should have a term life insurance policy that covers 8 to 10 times of your yearly salary. That choice is yours. Any policy is better than no policy at all, but if you take the time to get a policy, get one that is enough to cover your yearly salary many times over.
The good news is this:
Term life insurance policy is CHEAP, and it's been getting cheaper as Americans live longer.
The bad news is this:
Over 40% of middle income Black adults are not covered, and for those the 60% that are covered, many don't have adequate coverage. Have a small $10K policy is not enough to cover your expenses and truly take care of your loved ones that depend on your income. Many of us need to take a look at the policy we have in place, and increase the values of our coverage for proper amounts of protection.
Do not rely on your life insurance policy at your job. Most do not offer the amount you need, and there may be stipulations, limitations, and small print that you are unaware of, which can come back to haunt your family upon your death.
If you are the breadwinner in your family, Life Insurance will replace your income in the event that something catastrophic happens to you.. When you die, somebody has to pay the bills, so why not be sure you can pay for them, when you are gone. That's called "security". Your family is worth it and the last thing they want to go through, if you were to die, is financial struggles. Leave them well taken care of. This information regarding the breadwinner, could also apply to a stay at home parent as well, because what you do, cost money also. If something happens to you, your job now takes on a monetary value that can be expensive.
Start your financial planning with a good solid term life insurance policy that provides proper coverage and proper protection for your family. Be sure to get a policy on you and your spouse. Everyone's role is important and noteworthy, and necessary to replace. As your kids grow and get older, and as you become more self insured, you can reduce your coverage. However, term life insurance is so inexpensive for most of us that if you want to keep a small policy around, it's not going to break the bank to do so.
The bottom line is to get the proper amount of coverage immediately, and at the cheapest rate available, which means a Term Life Policy.