Life Insurance Myth: You Don’t Have to be Wealthy to Have it
April 11, 2022
You don't need to be rich to have life insurance. In fact, people of all economic classes can and should get a policy. For a monthly premium, you can ensure your family is well-cared-for when you're not around. If you're not well-off, these funds are even more essential once your source of income is gone. As morbid as it may be to think about, life insurance is your gift of security to loved ones after your passing.
Why You Need Life Insurance Regardless of Your Income Class
It's a fact that everyone will pass from this world someday. Planning for that inevitability should be on everyone's agenda. Even young people can benefit from getting their affairs in order to prevent stress for loved ones trying to untangle finances while dealing with grief.
Insurance provides peace of mind to you and a safety net for your family and friends. Funeral costs can put a dent in budgets, and the right policy ensures your loved ones can pay for your funeral or memorial service without worrying about the price.
Funds from a policy also allow family members the space they need to grieve. They don't have to worry about lost wages from missing work — they can take off as much time as necessary to tend to arrangements and adjust. They'll even have the means to seek grief counseling or travel to visit relatives.
How Life Insurance Works
Like other forms of insurance, life policies have a choice of payment options.. As long as you keep up with payments, the company will honor your contract and provide a specified amount in the event of your death. As part of the policy, you must choose beneficiaries to receive the funds. You can update these beneficiaries whenever you want, ensuring you can add a spouse or children as your situation changes.
When To Start Looking
You should look into getting insurance as soon as possible. The best time to shop for policies is in your twenties, as you're most likely to qualify for low premiums. However, it's never too late to look into your options, especially if you have children, senior parents or other dependents who rely on your income or care.
Having insurance is also essential if you own a business. Without you at the helm, keeping the company together poses a challenge to remaining partners and employees, especially if they're family members or friends. Funds from a policy can keep the enterprise afloat while everyone adjusts to the new normal.
Debt is another reason to get a policy. Most adults have some debt, and if you have a cosigner, the burden falls on that person to pay. Repayment can be overwhelming, especially when it involves collateral such as a house. A sizable payout ensures your loved ones keep a roof over their heads and don't have financial stress from unpaid loans.
About 1891 Financial Life
At 1891 Financial Life we don’t just sell policies, we offer possibilities. We pride ourselves on giving back to the communities that we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits along with social, educational, and volunteer programs designed to respond to community needs.