Life insurance is something which you may not think about until later in life, but at the same time, it is something which is well worth considering. Taking out life insurance no medical exam or otherwise means you are thinking carefully about the people in your life who you may be leaving behind should you pass away – and for millions of us, it is a necessary step to take with rising funeral costs and more besides. However, before you start comparing life insurance quotes or taking out policies altogether, it’s worth considering how much the system actually applies to your own circumstances and financial health. Do you need life insurance? Let’s take a look and find out.
What Life Insurance Does
Life insurance, despite the name, covers your estate and/or family to an extent when you pass away. Essentially, you are paying premiums while you are alive in the event of your death, which will then make sure that your family is offered financial care and support when you are gone. This financial assistance can be offered to your loved ones either in the form of a lump payment outright, or as regular amounts defined by you in agreement with your carrier of choice. This type of insurance won’t cover you if you suffer from illness or disability – it will only provide to your family once you are no longer with them. There are, however, other types of insurance which are worth looking into if long-term illness or disability are impacting upon your ability to earn.
Considering Your Needs
Considering life insurance is less about your needs, and is more about those of your family who you will leave behind once you pass away. If you have dependants, children or a partner who relies upon your regular wage, it is a good idea to look into a policy which offers financial support once you are no longer around to generate an income. Life insurance, too, will also help to cover funeral costs, which can be surprisingly expensive – but if you are unmarried or lack dependants upon your money, there may not be a need for you to consider a policy.
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You may already have a life insurance plan set up as part of your employment and benefits you therefore receive. It is well worth consulting with your employer to see if you are already registered with a carrier. If you are, there’s no need to take any further action. In these circumstances, a contribution will already be getting made via your wage to satisfy life insurance fees.
Considering the Costs
Life insurance costs are often less than you may believe, often rolling in at a handful of money per month. There will be factors that can affect your life insurance policy – such as your current state of health, how long you intend to pay for, your age and your lifestyle choices, such as smoking. There are many life insurance policies you can set up and which will happily pay out without you needing to attend a medical examination – but do be prepared to answer a few questions, at the very least, with regard to your health and lifestyle. It is assurance for any carrier you enquire with that you supply them with a truthful account of how you live and of any health problems you have faced. These issues may affect your premiums, but failing to disclose the truth may invalidate your policy outright. It’s simply not worth the risk!
Other Types of Insurance to Consider
Life insurance doesn’t have to be the be all and end all when it comes to protecting your family and your finance. As mentioned above, you can take out policies which support you and your family should you be suffering from a chronic illness or disability, or should you require payment protection either short or long term. If you are ever unable to work, it may be a good idea to look into paying premiums that can cover you outright – as if you are the breadwinner of the family, or if you have one or more people depending upon you, risking your family losing it all could be too much to bear.
Life insurance can be a great way to offer assurance to your family once you’re gone, as it can make sure that they are well protected when you are no longer around – short of you saving up a considerable stock of money on your own.