Life insurance is a difficult subject for families to face. While it is a key part of any financial plan to create a safety net in the event of an untimely passing, it can be overwhelming because we are forced to face that potential reality. When you then evaluate your options for life insurance policies, it can just add more confusion and concern, and even some stressors on our relationships. Here are some ways to know if you are finding the right insurer and life insurance policy for you.
Importance of Life Insurance
While there are so many options within the insurance industry, the fundamental importance of life insurance remains the same for a number of reasons upon your passing, such as:
- Covering funeral expenses and other outstanding debts
- Leaving money or assets behind to family members
- Building wealth with available investment products and options
- Transferring wealth and capitalizing on tax breaks
It is important when evaluating your options for a life insurance policy to trust the insurer that you are signing on with. For example, Primerica life insurance has emerged as a term life insurance product, urging people to buy specific policies and then invest the difference. The truth is that Primerica encourages these types of life insurance policies, but you need to choose the life insurance company that’s right for you. Don’t let a convincing phone call with a Primerica representative sway you, do you due diligence and only choose Primerica if it’s truly the life insurance option that fits your needs.
Types of Life Insurance
As mentioned, a Primerica agent may try to convince you in signing up for term life insurance. Term life insurance is a viable option that many policyholders opt for, but it is a very specific financial service that Primerica is offering and is likely not the right choice for many.
Term life insurance basically says that if an insured person passes away within the time period of their life insurance policy, a death benefit will be paid out to beneficiaries on the coverage. For these policies, it’s important to consider length of term and how much life insurance you’ll need to purchase. Level term life insurance allows you to pay an annual cost until the term ends, but permits renewal at a higher rate. However, if you outlive the policy without renewing, it expires with no refund for what’s been paid. You can get that money back with premium term life insurance.
There’s also whole life insurance, which is essentially permanent life insurance. It has a set premium that is valid as long as you keep paying. It can also build up cash value and result in some payout if you surrender the policy. Another form of life insurance policy is universal life insurance, which offers investment options. Premiums may be adjusted based on how you manage the coverage with investments, cash values, and even borrowing from the policy.
Taking Stock of Life
When looking at insurance coverage, it’s important to recognize who will benefit from this life insurance policy. It is important to take stock of the relationships in your life and recognize who is most important, especially the love of your life. Sometimes we let our relationships with our romantic partner take a back burner, and we become more interested in what’s on our phone and on social media than actual quality time.
A recent study refers to this as phubbing, a word that was coined as a combination of phone and snubbing. There are ways to recognize how phubbing is killing your relationship, limiting the in-person relationships to where date night is just sitting across a table and staring down at your social media accounts. Whether you’re the phubber or phubbee, it is important to put the cellphone down and actually have a conversation.
You’d be amazed at the positive effect of putting down your mobile device. Paying attention is just one of the fundamental needs of a romantic relationship, and assures a stronger bond and even greater mental health for a partner to know they are truly cared for and that the love continues to burn bright for years to come.
