As primary income provider, consider life insurance to provide for your family when you are no longer there to do so yourself.As primary income provider, consider life insurance to provide for your family when you are no longer there to do so yourself.
When deciding if you should purchase life insurance, you should first consider its primary purpose. Life insurance provides no direct benefit to the policyholder, since it is only paid out upon the death of the policyholder. Therefore, the intent of life insurance is to provide financial benefit to those listed as beneficiaries on the life insurance policy.
Funeral and burial costs average approximately $15,000 to $20,000, and if you don’t have funds put aside for this cost, someone in your family will most likely need to accept the burden of these expenses. For this reason, many people suggest that everyone should have at least enough life insurance to finance the policyholder’s funeral.
The other important question to ask yourself is: “Do I have someone who depends on me financially?” Dependents can be children, a significant other, parents, or anyone else who financially relies on you. Most people agree that the primary purpose of life insurance is to provide income to your dependents who will suddenly find themselves at a financial loss in your absence. If you provide the primary income, you need to consider life insurance as a way to provide for your family when you are no longer there to do so yourself. If you are not physically bringing home an income but you are staying at home raising your family, you need to consider the hidden financial asset of the services you are providing as well.
Since injury and health are unpredictable events, it is difficult to know if you have sufficient health insurance coverage. However, you can use your health history and lifestyle habits as a past performance indicator to determine your future needs.
If you frequent the doctor’s office with every runny nose or have a chronic condition that requires routine visits, then you probably want to find insurance that covers office visits.
If you have been to the doctor twice in 20 years you may decide to chance catastrophic only insurance. Likewise, if you live a life of adventure and are an adrenaline chaser, then you may need insurance that covers trips to the Emergency Room as well as the doctor’s office!
Premiums and benefits vary with each plan, typically with more benefits resulting in higher premiums. This is where knowing your lifestyle and health history can help reduce the cost of your insurance plan. The more coverage you can afford, the better the plan you can have, but you at least need to be sure your basic minimum needs are covered.