Why should you get life insurance?
Life insurance is a financial product that provides a lump sum cash payment, known as the death benefit when the insured passes away. Life insurance aims to mute any financial hardship that may arise from the lack of income the deceased will not earn any longer, plus any outstanding debts or obligations of the deceased’s that must be repaid.
If you want to purchase a permanent insurance policy with a cash value, you need to own it long enough for the cash benefit to grow, and a term-life policy is only set for a certain number of years. The right time to buy life insurance varies from person to person, depending on family and financial circumstances.
Generally, you need life insurance if other people depend on your income or if you have debt that will carry on after your death. However, the older you get the more expensive life insurance costs. A healthy non-smoking 20-year-old will pay less than someone with the same health profile but who is 20 years older. If you wait too long to purchase life insurance, not only is it more expensive, it can be harder to get the policy approved by an insurance underwriter.
