Someone once told me that life insurance was a waste of time. He said that life insurance can not help you, it’s there to help those who are around when you die. That might be true, but that might not necessarily be a bad thing. I have life insurance and I didn’t even bother to check out the disadvantages. (When people are selling you stuff, that’s the last thing they are going to talk about.)
Pros of Life Insurance
The pros of life insurance include:
1. It can be a way to provide for your dependents after you die – No one wants to think about dying. But would you want to leave your family and loved ones with your financial burdens?. Your life insurance can take care of your bills and support your family after you’re gone.
2. It can give you financial support, if you ever get really ill – Some insurance plans have clauses which allow you to have access to your funds, if you have a serious illness. This can save you some headache. No one can foresee what will happen in the future, so this could be a precautionary measure.
3. Mortgage protection – Many mortgage providers sometimes request that you have a life insurance plan. This is to ensure that if you should die, your mortgage would be covered.
Cons of Life Insurance
There are several cons of life insurance which include:
1. Can be pricey if you have existing conditions – For example, if you’re a smoker, your insurance premiums will be a lot higher.
2. Depending on the policy, you will not benefit from the investment – This is related to the fact that when you die, you family will be ones to gain. (This can be seen as a selfish way of looking at life insurance.)
3. Premiums might fluctuate – The premiums for some insurance plans get higher as you grow older.
These tips are very general in nature because of the different types of life insurance plans available and the specific rules that each plan has. Before you make a decision, talk to several licensed insurance professionals and get an idea of the types of life insurance plans that are out there. I’m a preacher on reading the fine print on every major document. This case is no different. Read everything and make sure you understand what you are reading before you sign.