Have you heard this increasingly popular saying?
GoFundMe is NOT a life insurance policy
Sadly, most of us have come across a crowdfunding post raising money to cover funeral expenses for an unexpected death. These circumstances are always tragic, and thankfully the immediate needs usually get covered quickly. For anyone who does not currently have a life insurance policy, a post like this should serve as a wakeup call.
Who Needs Life Insurance?
To be perfectly blunt, dying is expensive. When a person dies, the following costs are almost always a given:
- Medical services
- Funeral services
- Burial services
- Legal services
As you can see, these costs are not exclusive to income-producing people. At the very least, life insurance will offset the cost of final expenses. But that won’t be enough for anyone who has people depending on them to provide (financially or otherwise). Life insurance can cover ongoing and future expenses that will continue after – or be caused by – that person’s death.
While parents hate to think about the concept of life insurance for children, it really is wise to obtain coverage. Some childhood diseases will hinder a young adult’s ability to obtain affordable coverage. A policy purchased in childhood can be maintained through adulthood to provide at least basic coverage. Many youth policies can be transferred once the child reaches a certain age. This helps parents think of the policy as a gift, rather than an unthinkable purchase.
Individuals who have an employer-paid life insurance policy also need private coverage. Should you leave your job, you risk having a coverage gap. If you become too ill to work, losing that coverage would be disastrous without a private policy in place.
The answer to who needs life insurance is: everyone. The amount of insurance needed will vary by individual, but we all need coverage for those given costs at the very least. Most people guess at the amount of coverage they require, but it is better to drill down on the right number with your insurance agent. Your agent will ask questions that help you identify current and future costs that the right life insurance coverage could make manageable.
How Much Life Insurance Does a Person Need?
Many factors go into determining the amount of life insurance an individual needs. One key concern is what premium you can afford. Term life insurance, or insurance that expires after a certain amount of time, typically has the lowest premiums. It’s important to keep track of that policy to obtain well-priced renewal coverage before it terminates. This policy is great for people who expect their payout needs to decrease over time because they can renew the term for lower premiums and payouts.
Permanent life insurance has a higher premium, may accrue cash value or be available for loans, and it will also remain in force for your entire lifetime. This type of policy may be ideal once you have somewhat established your life and have a good idea of what future costs your family may need to cover.
Speak With Your Agent to Learn More About Life Insurance
Life insurance is not anyone’s favorite topic. No one likes to think about worst case scenarios. But what we really need to consider is preventing the worst case scenario from becoming even more awful. A life insurance policy helps people go on living after a loved one’s death. These vital policies can protect families from long-term financial ruin.
At Smyrl Insurance, we know this is a difficult topic, but the right life insurance policy provides for the unexpected. Contact us to go over your circumstances so that we can help you determine the best coverage for yourself or your family. At Smyrl Insurance, we educate, nurture, and empower individuals through insurance to help them protect their loved ones. We serve clients for life, personal, business, and other types of insurance in Hatfield, Lansdale, Souderton, Harleysville and throughout Montgomery County, Pennsylvania.
