The Cost of Dying – A Look at the Types of Life Insurance
Everyday people think about the cost of living, but rarely do they think about the cost of dying. The act of dying in and of itself actually has no monetary cost. However, there seems to be an endless array of costs that ensue the act of dying. These costs range from the cost of transporting your body to funeral arrangements, and also include any outstanding debts that you may have. These are not burdens that anyone wants to leave behind for their families, and there is a way to prevent the transference of these burdens to them on your passing. Look into affordable life insurance policies now, so that you can ensure your family and friends will be financially able to handle the responsibilities that will become theirs on your passing.
There are many different types of life insurance available from a number of companies specializing in meeting the insurance needs of the areas they service. One such type of policy is a variable rate policy. Usually with this type of policy the rate increases at certain ages in your life. This type of policy will start out with a lower premium when you are young and likely have the added expense of mortgages and children, and the premiums will increase as you age and hopefully gain financial stability. The down side to these policies is that the coverage you select initially is not guaranteed, so it can decrease as years go by. The insurance company can also drop you completely if they choose to do so.
Another type of life insurance policy available is often referred to as a term life insurance policy. With this type of policy you can select from a wide array of coverage for a specified premium amount. The premium amount is then locked in for the term of your policy, and terms can range from five years to thirty years depending on which you select. The good point of this type of policy is that you are guaranteed the amount of coverage you select for a predetermined premium amount for the term of the policy. The downside would be that you are likely to pay higher premiums when you are younger to offset the cost in the latter years of your term.
The third and final type of life insurance policy I would like to call your attention to is often called a whole life policy. This type of policy locks in your rates for your lifetime, guarantees the coverage amount that you sign up for, and even builds cash value as time progresses. However, there are caveats to this type of policy as well, since the premiums are the most expensive of the three types of life insurance policies on the front end they are often more than young people just starting out can afford. However, for those who can the guarantee for protection that cannot decrease along with premiums that are locked in for your entire life are often very attractive options.
Regardless of the type of life insurance policy that you choose to protect your family from the costs associated with your demise, it is an extremely important decision to have some type of policy in place. Most of us would never intentionally place our loved ones in a difficult financial position intentionally, but if you ignore the cost of dying while you are alive that is what you are ultimately doing.