I have been dreading writing this one because the subject matter has either been the most sensitive or the most boring.  In any case, I thought I needed to add my two cents worth here because in the end talking life insurance, as eye-roll-inducing as it is, has become a really big deal.  Especially given the higher cost of living generally, it has been unfortunately all too common for people to leave this world without much safety or support for their loved ones, even for as basic of things as funeral and burial costs. Almost everyone can benefit from coverage at some stage in their lives. Young adults, new parents, professionals, and even retired seniors.  Getting even a small amount of coverage when you are young can help you qualify for larger amounts later. Premiums (i.e., the amount you pay for an insurance policy) are typically more affordable when you start early, too and you are less likely to be rejected or undertake a health test.

With the various products out there, one that caught my eye lately was the Whole Life Insurance option which covers you until you pass away but with the value of an investment that you can withdraw at any point.  You can partially withdraw as well, but given that this is a long-term investment you will recover the cost of your insurance policy (albeit not at the same rate as other investments with higher returns – but at least you also have insurance).

To start, the most common option is usually a Term life insurance, which is purchased for specific lengths of time (the term). This lets you match your coverage to your needs and gives you the option of renewing at the end of each term.  The other option would be to take out Permanent life insurance, which is coverage that’s locked in for life and can never expire once all of the premiums have been paid.

With a whole-term option, your contributions are treated like an investment where you receive dividends based on market growth – so over time what you paid for your policy will grow and you will be able to withdraw your dividends or larger sums that have grown more than what you contributed in the first place.  Of course, this will depend on time and the longer you wait the more your investment will grow.  Although this seems like a great option, and mostly it is, you must consider whether this works for you and check if other investment options give you more return on your investment, even if that means getting regular term life insurance.  Don’t assume you will get what was promised to you I the beginning of your insurance as market performances tend to change and shift.

Whatever you decide to do, and depending on your budget,  just make sure you get some sort of life insurance to at least provide you with:

• Asset protection – Your family won’t have to sell your home or cash in other investments if something happens to you.
• Continuation of financial goals – Money from a life insurance policy can pay for all kinds of life goals, such as retirement and your kids’ education.
• Freedom to enjoy life now – Knowing that your family and legacy are protected, you can spend a little more money today on living life and contributing to your community.