Right through the previous years, life insurance has begun to gain huge popularity amongst individuals worldwide. With many terming it as one of the crucial pillars of personal finance, this type of insurance cover oversees that ones designated beneficiaries are paid a certain amount of money should the insurance policy holder die.
As per statistics, young parents and adults were the main contributors in the purchase of life insurance cover. Either they wanted to protect their children incase they passed away early or they wanted to establish some kind of safety nets for their loved ones before retirement. Despite its popularity, getting a life insurance cover can prove to be a hassle as there still remains a great deal of confusion as to who is elligable to apply for the same. Below is a detailed explanation pertaining different age cycles and their elligibility for the life insurance cover.
For single people.
It has been a common misconception that life insurance is only for the married people who have children to take care of, this is wrong. There are many reasons why single people should insure themselves. For starters, you wont stay single forever, maybe. Also, it would be a big shame if you die and one of your family members has to pay some of the debts you've left behind as well as your funeral bills. As well, one cant tell what the future holds, you might succumb to some fatal diseases making it expensive to get a life insurance cover at that point. Remember, getting this cover is less costly when you are young as compared to when one ages.
For single individuuals taking a whole-life cover should come in handy if they intend to stay single forever. However, a term insurance cover is recommended incase they plan on not staying single forever
For young families:
At this stage, primarily for those families without a big chunck of money set aside, its important to take this insurance cover. With couples having either each other or their new born kids to protect incase of ones untimely demise, life insurence coverage will see to it that the people who depend on you are sorted interms of income and support.
For many young families, term insurance coverage is always the way go. But why is that so? For one thing, its more affordable and less costly as compared to whole life cover. Moreso, one can choose the term depending on their kids age and the period of time they would wish to provide them with financial cover until they become of age and can take care of themselves.
For established families:
At this stage, one has enough experience with parenting. This is where most of your kids are school aged, be it college or kindergerten. You've most definately set up a career and you have numerous financial responsibilities to take care of. At this stage you will realize that you dont have enough time to recover from unexpected set backs as you once did. Therfore you will have to take additional steps to protect what you have.
Disability and long term care insurance cover may come in handy for established families as they will ensure you receive some funds incase you get disbled or seriously ill to report for work. It will also see to it that you get the best nursing care once old age kicks in. With the huge number of responsibilities on your back at this stage, taking a life insurance cover will see to it that they receive the necessary financial support they might require once you pass away.
For empty nesters/retirees.
The main reason why individuals purchase life insurance cover is to provide an alternative source of income for their loved ones incase they die. With that reasoning, its not that necessary for retirees to cover themselves because at this age most of their children are grown and can fend for themselves. Besides, most debts have been duely paid off.
However, retirees can still go ahead to cover themselves due to the following reasons: If you are still paying debts this a whole-life insurance cover is well-adviced, additionaly, if you have a disabled child or some of your children still live with you, keeping this cover can be good for them. Furthermore, if you have a considerable number of assets you can use this cover to take care of various estate taxes.
There is no sugercoating though, buying a life insurance during retirement is much costly as compared to a younger time period. This is because there is a higher chance the insurance company will pay you off.
Once you get the basic understanding and a clear idea about life insurance cover, getting the right coverage for yourself and your family wont be challenging. Protecting your family from unforeseen calimities wont do you no harm. Moreover most of these insurance covers are not that costly and wont cost you a dime.
