Why are people afraid of life insurance? Is it because it entails something people generally do not like to think about? How many years should we keep our life insurance policy?
These are some of the most frequently asked questions about life insurance. This article will tackle the top 5 commonly asked questions about life insurance.
What is life insurance?
Life insurance is a binding contract between an insurer and a policyholder. It guarantees a sum of money to the insurer or his beneficiaries. More so, there are two types of life insurance policy; the term life insurance and permanent life insurance.
The former entails paying a certain amount during a certain time while the latter remains active until the insurer’s death.
What are the benefits of a life insurance policy?
Life insurance provides a lot of benefits for you or your loved ones. Do you need it? The answer is yes. Part of being financially literate is securing your future. Let’s face it. We’re all going to that same destination. But the scariest of all is leaving your loved ones empty-handed.
Life insurance gives you and your family the safety net to face their daily lives without having to worry about the food, shelter, or security they need.
How much does life insurance cost?
It depends on the premium, coverage, term, and customized provisions. Most importantly is figuring out the risks you are willing to take. To determine the risk is to determine how much you are willing to pay. There are life insurance policies that are affordable and at a minimum cost that still protect you.
How to keep your life insurance up to date?
The things you want to consider are what type of insurance policy you need to keep and how much you will spend on it. Keep your trusted insurance company, decide on the premium you want, talk to your broker or agent, and you’re good to go.
Is it worth the interest?
Again, it depends on how you are going to take the risk. Life insurance is a long-term commitment. As said, only set aside the money you are only willing to lose. If you stop paying for the premium, it is useless because the policy will be terminated. Being financially literate involves taking risks.
Conclusion
Many are hesitant in keeping their life insurance policy, and it is understandable. There are cons to it, but the benefits precede the disadvantages. It is an investment, a commitment, and a gift all at the same time. Keeping insurance doesn’t have to be a burden when you know you’ll be leaving your loved ones at ease and in peace.
At The Modern Medicare Agency, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, don’t hesitate to contact our agency at (631) 358-5793 or Click Here to request a free quote.