Is my life insurance working for me?
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by: ChrisClare
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Ok, so I have life insurance that I purchased about three or four years ago, which was plenty of coverage, so I am good and don't have anything to worry about, right? Nothing could be farther from the truth and if you are thinking that way, you may as well start handing your money out to strangers on the street as you pass them in the course of your daily life.
The chances are the life you are living today is very different from the life you were living 4 or 5 years ago. Let's look at an example. A little more than 5 years ago Mr.x was single, fancy free, raking it in as an internet whizz, with expensive and dangerous pass times like snowboarding and base jumping, with an active social life, a posh rented condo and little or nothing to hinder his life motto of living fast and dying young. Now Mr.X has a Mrs.X and a couple of little baby X's running around. The high paid job has given way to a steady safe not so highly paid job, he has a mortgage on a three bedroom semi, nursery fees, school fees, golf club fees and his wife's gym membership to pay for and the disposable income isn't as disposable as it used to be.
All right, so that is a little bit of overkill. But you get the drift. The coverage that was perfect for you four years ago would not even pay the cost of your premium on the house insurance today. So you, my friend, need to have your coverage looked at and upgraded and updated as applicable. Maybe you'll be one of the few that has the same needs today as then and if so, great. You will have the peace of mind knowing that no matter what life throws at you, you have the correct insurance to make sure everything is taken care of and you can sleep easily at night.
The first port of call should be to your life insurance agent. They will be abe to look objectively at your changing situation and advise you on how best to insure your life. They can look at how much you are paying, and what you are paying for, and can help you redirect your money if needs be so that your loved ones are properly provided for in case the worst happens. It is their job to help you save money, increase or decrease coverage and of course avoid financial difficulty or even bankruptcy.
Depending on your own personal circumstances, you will find that either of the two life insurance options, namely a term policy or whole of life policy, will be the one most suitable for you. You should also be able to add in the option to borrow against your policy for short term financial benefit should circumstances require that you need to do so.
These days most people are going for the term policies. They are only slightly more expensive but come with significantly bigger benefits with regards to covering for life's possibilities. It offers you financial peace of mind that should the worst happen, you can cash the policy in so as to release the money to help out with whichever impossible situation has occurred, or if something minor has gone awry in your life, you can borrow more money against the policy and keep it on going. A savings plan with free access, if you will.
So, which plan is best for you, your family, and your current life situation? These are questions that are best directed to your agent and you can either discuss with your life insurance agent, if you have one, or research at the website where you have your coverage if you got it online on the Internet.
It's not a terribly difficult decision for you to make. You need to answer a few questions about where you are in life and how much you need in order to survive should a catastrophic event occur. Emergencies are some that come up from out of nowhere, at inopportune times and when we least expect them. That is the whole purpose of planning for the unexpected. You make plans and insure against the worst-case scenario and hope it never happens. If it does you are ok and if it doesn't, you lived life with peace of mind and if you purchased a whole life policy, you will have a nice little nest egg to cash in when it is time to retire to that villa in the south of France. The important thing is that you do NOT put off doing it until tomorrow. Everyday you put it off brings you a day closer to the possible emergency that you are planning against.
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