You only live once. These wise words have become really popular in recent years. Usually, people say them when they’re about to do something stupid or dangerous, or a bit of both. But let’s give them a different meaning. If you truly live just once, you should take care of this life, and make sure it’s safe in case something happens. How can you achieve that goal? By getting life insurance. Remember, it’s not only for the rich. There are many companies like anorak life insurance, where you can find plenty of offers just for you. But isn’t life insurance just for the rich, you may ask? Well, let’s find out.
Most common questions
The first mistake people make when it comes to getting life insurance, is that when they’re young and healthy, they think they don’t need one. Why is it the first mistake? Because when you’re young, it’s much easier to pay much less for your life insurance. Remember that life insurance companies measure insurance costs by probability. The higher the risk, the higher the payment.
That’s why it’s best to buy life insurance when you’re young, and your health is at its peak. By doing so, you will be able to find an offer that won’t make you cry of all the money you spend when you’re signing your insurance papers.
Now let’s get to the second question, why should you get life insurance. There are plenty of benefits, but mind yourself that you won’t be able to see them immediately. You get your life insurance in case something terrible happens to you so that you and your family can be protected.
There are also many fringe benefits coming with life insurance like tax benefits or add-on benefits. It doesn’t matter if you’re rich or poor; life insurance is often the key to securing your family’s future.
Types of insurance
Now that you know when and why you should get yourself life insurance, you need to decide what will suit you best. There are many plans of life insurance that you can choose from, it often depends on the company, but we can divide all of them into two main categories: term insurance and permanent insurance.
As it’s stated in the word term, this type of insurance protects you for a certain period of your life. The most common period is considered to be 20 years, but you can even choose a one year option. It’s all up to you. This type of insurance is usually cheaper, and by selecting a period, you can fit it to your needs. For example, if your children are newly born, and you want life insurance until they graduate, 20/25 year period is the best for you.
There’s one problem with this type of life insurance, which is that when you want to renew it, it may actually be more expensive. As written before, life insurance companies measure the cost by the risk, so it’s more likely to die when you’re 60 than when you’re 30. That’s why when you get your life insurance while being 30 years of age, it won’t stay the same 30 years later.
The second type is permanent insurance. By choosing this one, you get your insurance for the entire life, as long as you make regular payments. You can pay the installments monthly, quarterly, annually, or splash the whole sum upfront. Permanent insurance gives you protection for life, but it’s also more expensive and has an investment component.
Is it just for the rich then?
No, it’s not. Life insurance depends on many factors that are not based just on your wealth. In fact, there are offers for people of all wealth that you are able to choose from. Remember that the costs are based on the risk, so the sooner you get the insurance, the less you’ll pay, so choose the right time for that investment.
You can also choose a payment plan. You don’t have to pay the whole sum in just one installment. You can actually pick the plan that suits you best, and doesn’t leave you with no money on your account. The spectrum of offers is really broad, and it’s up to you which one you choose.
To sum it all up, it’s fair to say that the only rich insurance myth is, indeed, just the myth. Remember that you, and your family can only benefit from life insurance so you should really consider getting one. It doesn’t matter if you’re rich or poor, young or old, having life insurance can really secure not only your future but also the future of your loved ones.