The following questions, which the future insurance company client should answer in the affirmative:
Will your relatives face financial difficulties in case of your death?
Do you have a spouse, partner or child dependent on your income?
Do you have a mortgage loan?
“If you do not want your loved one while experiencing a tragedy, to face financial difficulties, you need to buy a life insurance policy,” says Ginty.
Contrary to popular belief, life insurance is relevant not so much for the elderly as for young people. Purchase of such a policy is taking care of family members and close ones in case of unforeseen circumstances. The service is extremely important for those who bring the greatest income to the family and whom the household is financially dependent on. That is, the policy is made out so that in the event of the breadwinner loss the family will not be left without means of subsistence.
A family that has lost a breadwinner is also entitled to insurance payout by the employer. However, you should not rely on it too much. First, it is not a very large amount, from 10 thousand dollars to the size of the deceased's annual income. Secondly, it is paid only once, that is, this money is enough only to cover the family's expenses for a maximum of one year. And third, some employers pay insurance only if their employee dies while at work.
There is no unified life insurance system in the United States. Long-term insurance for 10-50 years is the most common, but there is also an option with an accumulative (savings) policy.
You need to make a decision on investment after you decide on the type of policy. “Most standard policies range from $250,000 to $1 million. Before applying for life insurance, it can be helpful to gather some documents ahead of time. Most insurers will require a medical card, they will ask you about hereditary diseases,” says Barbara Ginty.
Photos are from open sources.