By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    physical health
    5 Ways Playing Games Can Improve Neural and Physical Health
    September 9, 2022
    Reasons For Hair Loss and Its Treatment
    Reasons For Hair Loss and Its Treatment
    February 16, 2022
    healthcare organization
    5 Actionable Strategies For Healthcare Organizations
    August 15, 2022
    Latest News
    Biohazard Cleanup: The Importance of Proper Disposal and Containment
    December 2, 2023
    Medicare Helps Seniors, and People with Disabilities & ESRD
    November 27, 2023
    The Link Between Allergies and Sinusitis & Strategies for Relief
    November 27, 2023
    What Health Complications Can a Sunburn Cause?
    November 22, 2023
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Alzheimer’s Preventable with Lifestyle Changes
    August 30, 2011
    Junk Food isn’t Cheaper After All
    September 30, 2011
    FDA Accepts NDA for VIVUS’ Qnexa
    November 4, 2011
    Latest News
    Automation in Pharmacovigilance: A Double-Edged Sword
    November 15, 2023
    What Does Science Say About Modern Health Practices?
    November 12, 2023
    Harnessing the Power of Email Marketing in Healthcare
    October 26, 2023
    10 Proven Strategies to Level Up Your Health Business
    October 25, 2023
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Here is What You Need to Know About Life Insurance
Share
Sign In
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Have an existing account? Sign In
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Health care > Here is What You Need to Know About Life Insurance
Health care

Here is What You Need to Know About Life Insurance

Kara Reynolds
Last updated: 2021/05/25 at 7:20 AM
Kara Reynolds
Share
7 Min Read
what you need to know about life insurance
Shutterstock Photo License - By Rawpixel.com
SHARE

As you navigate your life, you have many decisions to make, like whether you want to get married, have kids, where you want to work ? and the list goes on. Life is full of ups and downs, and you want to make sure you and your family for any surprises.

Contents
What Is Life Insurance?Types of Life InsuranceTemporaryPermanentWhy Do People Get Life Insurance?1. Paying Off Debt2. Replacing Your Income3. Covering the Costs of a FuneralPros and Cons of Getting Life InsuranceProsConsCost of Life InsuranceLive Life to the Fullest

One thing you may consider is whether to get life insurance. It?s something you hear adults talking about all the time or may hear about on commercials, but do you really need it? Sure, you know that it covers your life in some way, but there?s more to life insurance than putting a price on your life.

Life insurance forces you to think about circumstances that you don?t want to happen but that you should prepare for ? what happens to your loved ones when you pass away? There are so many options for life insurance, and it can be challenging to thoroughly grasp its ins and outs.

Fortunately, this guide will help you solve all of your life insurance questions. Here is what you need to know about life insurance to make an informed decision regarding a policy for you.

What Is Life Insurance?

First of all, you need to know what life insurance is. It?s a type of contract between you and the insurance company. You agree to pay a certain amount of money, called a premium. In return, the insurance company guarantees that a beneficiary will receive that money when you pass away. It ensures that the money you put into it goes to a specific person to help them cover debts or other funeral costs.

Typically, the beneficiary is a spouse. However, there can be multiple beneficiaries. You might name your spouse as the primary receiver of the money. However, if your spouse were to pass away, that money can go to secondary beneficiaries, like a child or a sibling.

Types of Life Insurance

There are two types of life insurance ? temporary and permanent. Here are some basic facts about both:

Temporary

Temporary life insurance is better known as term insurance. You can get policies issued for a certain amount of time determined by you. It still pays the beneficiary a death benefit if you die during the term. However, if you are still alive by the time the insurance term is up, the policy no longer has any value.

Permanent

Permanent life insurance is, well, permanent. It covers you for your entire life. As long as the policy is still active when you die, the beneficiary receives the payment. Plus, permanent policies build value over time.

Why Do People Get Life Insurance?

People get life insurance for many reasons. Here are some reasons why you might want to consider getting life insurance:

1. Paying Off Debt

Whether you still have student loans, a mortgage or other debts, the money you put into life insurance can help pay those off. Life insurance takes off some of the financial burdens that you may leave when you pass away.

2. Replacing Your Income

Leaving behind a spouse and young children can leave them with a financial burden. An income that was once there isn?t there anymore. Life insurance can cover that for you so your family can continue to pay bills and keep their standard of living. Life insurance can significantly reduce the stress of leaving your family in a bind like this.

3. Covering the Costs of a Funeral

Funerals are expensive. One of the main reasons why people get life insurance is to cover the cost of a funeral and other expenses that go along with that.

Pros and Cons of Getting Life Insurance

Now that you have a better understanding of life insurance, you can determine the pros and cons of getting life insurance.

Pros

Here are the advantages of getting life insurance:

  • Family Protection: Many people choose to get life insurance so their families will have financial protection, especially if they rely on you for an income.
  • Inexpensive: Depending on age and coverage, life insurance can be affordable.
  • Peace of Mind: Death is an unexpected event, so if something were to happen to you, you have peace of mind for your family?s finances.

Cons

  • Price Rises As You Age: The older you get, the more expensive life insurance can be since you?re more at risk.
  • You Can Easily Be Misinformed: As you can see, there?s a lot of information that comes with life insurance, so it can be unclear for you to get the right kind of insurance.
  • Permanent Life Insurance Gets Expensive: Term life insurance is less expensive than permanent. Since it lasts your whole life, the cost doesn?t depend on your age or health.

Cost of Life Insurance

The cost of life insurance is determined by how much you put into it. You could put a few dollars in each month, or you could put in hundreds of dollars. Insurance companies usually offer payment plans to make it affordable, though.

Life insurance costs are based on several different factors, including:

  • Medical conditions
  • Age
  • Whether the life insurance policy is permanent or temporary
  • How much you want to put into the death benefit

Based on these factors, you can better determine your life insurance cost. The younger and healthier you are, the less costly it will be.

Live Life to the Fullest

Life insurance is an excellent investment if you want financial peace for your family. Understanding the basics of life insurance will help you make a better decision about what kind of life insurance to get. Although it can be a difficult topic to discuss, it will help you live life to the fullest now without worrying about the future.

TAGGED: buying insurance, life insurance

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Kara Reynolds May 25, 2021 March 24, 2021
Share This Article
Facebook Twitter Copy Link Print
Share
By Kara Reynolds
Follow:
Kara Reynolds is the founder and Editor-in-Chief of Momish Magazine, an inclusive parenting magazine filled with parenting hacks, advice, and more to keep your beautiful family thriving. As a mom and stepmom, Kara hopes to normalize blended families and wants her readers to know that every family is beautiful and messy just how they are. When she's not writing, Kara enjoys pilates and likes a little coffee with her cream. Find more from Kara on Twitter @MomishMagazine.
Previous Article mental health app How to Develop a Feature-Rich Mental Health Application?
Next Article clinical trial 6 Important Tips to Ensure Smooth Clinical Trial Logistics

Stay Connected

1.5k Followers Like
4.5k Followers Follow
2.8k Followers Pin
136k Subscribers Subscribe

Latest News

Invasive Dentistry
Precision And Comfort: The Role Of Lasers In Minimally Invasive Dentistry
Dental health Specialties December 4, 2023
sublingual immunotherapy
Sublingual Immunotherapy: A Safe and Effective Alternative to Allergy Shots
Allergy Specialties December 2, 2023
Biohazard Cleanup: The Importance of Proper Disposal and Containment
Biohazard Cleanup: The Importance of Proper Disposal and Containment
Health December 2, 2023
Medical Device Concept Development Paving the Way for Healthcare Innovations
Medical Device Concept Development: Paving the Way for Healthcare Innovations
Medical Devices December 2, 2023

You Might also Like

email marketing in healthcare
Marketing

Harnessing the Power of Email Marketing in Healthcare

October 26, 2023
healthcare business tips
BusinessHealth care

10 Proven Strategies to Level Up Your Health Business

October 25, 2023
The key stakeholders involved in improving healthcare policy
HealthHealth care

The Key Stakeholders involved in Improving Healthcare Policy

October 16, 2023
healthcare technology
Technology

Role of Custom Design Services in Modern Healthcare

October 13, 2023
Subscribe

Subscribe to our newsletter to get our newest articles instantly!

Follow US
© 2008-2023 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Lost your password?