Are you considering getting life insurance protection for your family? There are several benefits that having a good life insurance policy can provide to a policyholder and their beneficiaries.
Here are five important facts that everyone should know about having life insurance protection.
1. The earlier you start, the better
Not too many people think about their own mortality when they’re young and in their 20s. But if you wait until later in life to purchase life insurance, there’s a good chance that your health won’t be as optimal as it was before. Unfortunately, taking this risk can lead to paying higher premiums.
For the best possible rates, a smart strategy is to acquire life insurance as early in life as possible. That way, you can lock into a low price and have added peace of mind that you’ll pay this rate no matter what becomes of your health later on.
2. You may need more coverage than you think
If you’ve already got life insurance through your employer, this is a great start. However, it’s probably nowhere near as much as you actually need. The death benefit from life insurance should serve as a form of income replacement. That means it should continue to provide money to your family even if you’re no longer able to do so yourself.
For that reason, many financial experts recommend that you should get coverage somewhere between 10 and 12 times your annual earnings. Since your employer’s life insurance policy is probably much lower than this, then you may need a supplemental plan or your own life policy.
3. There are many types of policies
There isn’t just one type of life insurance. Some policies are designed to be as affordable as possible, while others are more advanced with features that you can utilize during your lifetime.
If you’ve run into health issues and have ever been denied life insurance coverage, there are still products available to you. The industry has options that don’t require a medical exam or health screening of any kind. No matter what your financial situation or health condition is, there’s always an alternative.
4. Some policies can build cash value
Although term life insurance policies are often promoted because of their affordability, there is a whole array of permanent life insurance policies that provide a cash value component as well as a death benefit. The cash value can build over time, earning interest and dividends, or can even be invested in the stock market. It also grows tax-sheltered, just like the money inside of your retirement plans.
5. You can borrow against your cash value
Another great thing about permanent life insurance policies with cash value is that you can borrow against them as needed. Many people use their cash value like a loan from the bank to buy other financial assets such as rental properties or start a business. Borrowing from your life insurance policy is also much easier and cheaper than going through the approval process for a loan with a traditional lender.
The bottom line
When it comes to getting life insurance, there are several important things to know. Generally, the younger you start, the lower your premiums will be and the more coverage you can afford. Beyond that, there are dozens of policy types, and some even come with built-in investment features. In the world of life insurance, there’s always something for everyone.
This is a brief product overview only. Coverage may not be available in all states including but not limited to ID, NJ, NM, NY, or VA. Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Policies and riders have limitations and exclusions that may affect benefits payable. For costs and complete details of the coverage, please contact your local Aflac agent. In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, and Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400 and Riders: ICC1368050, ICC1368051, ICC1368052, ICC1368053, ICC1368054, ICC1368055.
Aflac insurance coverage is underwritten by Aflac. In New York, coverage underwritten by Aflac New York.
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