We need insurance for a variety of reasons. Auto insurance, for example, is important when driving as it protects you in the event of a collision. If your car is damaged, or worse, written off, you know that your insurance company will cover the cost and have you back on the road in no time.
Perhaps you run a business; you know just how important it is to be covered with a good insurance policy so that if your company was ever taken to court, it wouldn’t suffer so much as the insurance will cover any payouts it needs to make.
But when it comes to life insurance, most people aren’t sure where to start. How do you go about insuring something as precious as your life?
Why is Life Insurance Important?
Life insurance protects your nearest and dearest financially in the event of your death. If you are the main bread-winner in the family and don’t have life insurance, your spouse or partner and children will be left without an income when you pass away. So you can see why most people agree that it’s an important policy to have, even though you’ll never gain financially from it yourself.
You know that when you’re no longer around, your family won’t have money on top of everything else to deal with and the impact of your death won’t be as hard on them. Nobody likes to talk about death, but it happens to everybody, so it’s best to be prepared.
What to Consider?
There are several things to consider before choosing a life insurance policy, and we’re going to cover them in a little more detail.
Your Age:
Your age might come into consideration when choosing life insurance. Some insurers may charge more if you are older – it all comes down to how likely you are to pass away in the near future. On the other hand, if you’re young, it’s worth taking this into account when choosing the type of policy you go for.
A whole life policy might not be the best option for you at this point, as it’s likely you’ll still be around in the next few decades and you could end up paying more than you need to for life insurance.
Your Health:
Your health is a big factor when choosing life insurance. If you have any pre-existing health conditions, you will need to declare these when you apply and they will be used to determine your premium. If you have any serious or chronic illnesses, you can expect to see premiums rise. On the other hand, if you’re in good health, then you should be in with a good chance of getting the best price.
If you’re quoted a huge amount due to a pre-existing health condition, don’t worry. This can sometimes happen with online application systems and it’s best to give the insurer a call and explain it.
Your personal circumstances need to be taken into account. For example, somebody can have asthma that doesn’t affect their day-to-day life, while someone else could be debilitated with the same condition.
Your Job:
If you work in a high-risk job, you will usually need to pay more for life insurance as your risk of losing your life is higher than most other people.
Think police officers, firefighters or even civil engineers and pilots. The best thing to do if you work in a high-risk career is to consider using a broker who specializes in finding insurance for people in your profession. They will be able to find the best premiums and plans for your needs.
There’s a lot to think about when it comes to getting life insurance. Keep all the factors in mind and use them to find the best cover for you.
Photo by Imani Clovis on Unsplash
