A week ago a good friend's husband died suddenly and tragically. In addition to grieving, she now had the task of planning a funeral and scrambling to get together money to bury him. Yes, despite them being fairly successful, they were without life insurance. According to Money Central, 35 million American households are without insurance and 11 million include children under the age of 18.
To die early is tragic but to die without insurance can be a burden on one’s family. When my oldest son was 1, I took out an insurance policy on his father (now my husband). I had already taken a policy on both me and the baby but I needed our whole family covered. When I first told him of my intentions, he said, “Why do you need to do that?” He was adamant that he was NOT going to sign any paperwork because he was going to live forever. After countless arguments of me pointing out how “messy” it gets when someone suddenly dies and there’s no insurance money or will he finally signed the papers. When that paperwork was signed, I breathed a sigh of relief that in case a horrific accident occurred, I would not be burdened with having to raise money to bury him or vice versa.
Here are three tips for buying (and maintaining) life insurance:
Do your research before buying a policy. There are different types of insurance available to buy such as whole life and term life insurance. Know your needs and pick accordingly.
Review your policy annually. Once you get your policy, check with your agent every year to determine if you need to adjust anything. You can increase your insurance amount or look for available discounts.
Make sure you pay on time. Have your premiums automatically withdrawn from your bank account so there’s never a gap in policy coverage due to you forgetting to make a payment.
Ultimately, life insurance is never an easy topic to discuss but it’s a conversation that you must have to ensure that your loved ones are not struggling once you’re gone.
Have you gotten life insurance on yourself and/or your family? Let us know why or why not?