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    Things to Consider When Buying Life Insurance

    Ventura County News
    By Citizens Journal Staff

    As unpleasant as the topic is, death is a part of life. Whether it happens after a prolonged illness or after a tragic accident, you need to know your family will be taken care of. That’s why having life insurance coverage in place is so important. However, not everyone knows when it’s the right time to buy it. In this guide, we’ll go over some of the top reasons to buy a life insurance policy and when.

    If You Have Children or Other Dependents

    If you have children or other family members you’re responsible for, you should buy life insurance. The whole concept of coverage is to provide financial support for your loved ones when you pass. If you’re not sure where to look for appropriate coverage, the Navient Marketplace Blog is a great place to start. Here, you can research the different types of policies, more about the benefits, and decide which is best for you and your family. Since everyone’s situation is different, it’s best to research the different types before proceeding. It’s also a good idea to under how these types of policies work while you’re still living and after you pass away.

    Are You Employed?

    Your employment status always plays a significant role in the decision process. If you’re a full-time employee, you might have a policy through your employer. If not, that will also impact which type of coverage you get. Since you want to reduce financial stress by ensuring your loved ones won’t have to worry about paying the mortgage or medical expenses. On the other hand, if you have group life insurance through work, it might only be active as long as you’re an employee. In some cases, the moment you find another job or are terminated, you lose your coverage.

    How Old Are You?

    Your age is another thing you need to consider. If you’re in your early twenties, single, and without dependents, the type of life insurance you choose will be dramatically different than someone who is in their thirties or forties with a family. In fact, it’s not uncommon waiting until hitting your thirties to buy life insurance. If you’re in your forties, fifties, or older, the type of plan you purchase may also be different. If you have children, they may be older and have their own source of income.

    However, if you started your family later in life or are taking care of elderly parents the type and amount of protection you choose will vary. You’ll also want to be sure to list the right people as beneficiaries. If it’s your children, you can designate a trustee to manage the money until they’re legal adults. If you want to list numerous other family members are beneficiaries, make sure you clearly outline how you want to money to be dispersed and by who. Unfortunately, it’s not uncommon for people to forget this important step, which then leads to conflict after you’re gone.

    Term or Whole?

    Aside from the being the right time to buy, you also need to choose between term or whole coverage. Term is for a set amount of time, usually 15 years, and expires when you reach a certain age or when you choose to terminate. Whole life insurance is an ongoing policy that remains in effect until you pass away. If you choose term, you can also switch to a whole life insurance policy later. If you choose to go this route, be sure to ask if your current policy’s monetary value transfers over, or if there are any penalties associated with making the change. Another thing to know is that you usually can’t sell term insurance plans.

    Pay in Installments or All at Once

    Typically, you can pay monthly, or you can elect to pay your annual payment in one lump sum. Depending on your financial situation, it might be cheaper to pay off the annual premium at one time.



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