When you’re young, you feel invincible – like nothing could ever hurt you. But considering those events that happen even when life seems to be running smoothly, isn’t it better to be prepared?
First of all, What is life insurance?
Purchasing life insurance allows you to provide a safety net for your loved ones in case you pass away. A life insurance policy is a contract stating that, as long as your premium is paid and the policy is active when you die, your beneficiaries can receive a death benefit payout to be used however they like — for final expenses, paying off outstanding debt, and even everyday costs.
When you’re young, life insurance is probably the last thing you think you need. Life insurance isn’t (and never has been) an easy topic to talk about. Let’s face it – no one wants to think about death. Or we think about it too late, when insurance may not be attainable (and definitely less affordable).
That’s why it’s important to get life insurance when you’re young. You’re most likely healthier, so a life policy is more affordable. Life insurance policies generally fall into three categories: term, permanent, and final expense. Once you understand the difference, you can easily determine which is right for your beneficiaries' needs and your budget.
Before you get life insurance coverage, you should also understand why you need it. While there are many reasons to buy life insurance, the most common reasons include:
Final expenses - Final expenses refer to any expenses related to someone’s passing.
Income replacement - Your loved ones depend on your income to meet daily needs for food, medical care, utilities, car payments, and much more. Having a life insurance policy in place can help provide financial security and the ability to maintain your current lifestyle (especially if you stay home with young children).
Paying off a mortgage - Life insurance can pay off an outstanding mortgage so your family can enjoy the home they love without the burden of outstanding payments.
More than your car or your house, your life is your most important asset. So why don’t we protect it more? Life insurance can be confusing and unattainable. To help navigate through the overwhelming information, here are some important thoughts to consider before deciding on a life policy:
8 TIPS for Anyone Considering a Life Insurance Policy
Understand who (or what) you’re protecting
Only buy the life insurance plan you can afford
Think through your beneficiaries
Consider how much life insurance you need
Buy from a financially sound company
Take into account current and future needs
Learn about life insurance
Work with a licensed insurance agent
Talking with us at Peterson Insurance Group about life insurance, we understand it's not an easy conversation to have, but it’s absolutely one worth having. Life insurance is proactive protection, for both you and your family—and it’s easier to get when you’re young. Contact us today to get the conversation going on how to protect your future. (828) 645-8777.
Peterson Insurance Group is a family-owned and operated independent insurance agency representing multiple companies located in Weaverville, NC. Founded in 2001, the company is owned by Eirene Peterson-Burnette, the successor to the founder, Stom Peterson. Together, with her team, Peterson Insurance provides exceptional, personal service guiding customers through the maze of insurance options. Visit us at 1 South Main Street Extension, Weaverville, NC 28787 or call 828-645-8777.