Conventional wisdom dictates that life insurance is one of the most important facets of adulthood. Simply put, it protects you and your family in case of an accident or injury. However, there is a school of thought which thinks life insurance isn’t the savior that people believe it to be. So, is it important or is it insignificant?
The question is hard to answer because there are pros and cons. All anyone can do is take a look and make an informed decision once they have all of the facts. So, if you’re ready, let’s take a glance at what makes life insurance tick and whether that makes it beneficial.
Here are the pros and cons. The rest is up to you.
Pro: Helps In Time Of Need
There is nothing worse than being on the wrong end of any injury. And, accidents happen all the time, so it isn’t like they are avoidable. Anyone that is hurt will need help, yet it isn’t available all of the time. Sure, family and friends will rally round, and the government may chip in, but it often isn’t enough. When you need to pay the bills, a steady stream of income is vital to your survival, literally and metaphorically. This is where insurance policies come in handy. Due to your regular payments, the company should have no hesitation paying what you are owed. Either you or your family can use the money to offset any debts which occur as a result of an accident.
Con: They Don’t Always Pay
Sadly, insurance companies are like every other business in the sense that they want to make money. And, the best way to do that is to reject customers for infringements. Now, it’s worth noting that most of the time they are in the right, even if it is sneaky. However, there are and have been incidents where insurance firms actively tried to avoid the check. Some even have a policy of saying no straight away and working out the details after. Sorry, but there is a chance that your firm might not pick up the bill, which makes insurance pointless.
Pro: It’s Cheap
A quick look at www.gocompare.com will tell you that a policy doesn’t have to break the bank. In fact, contrary to popular belief, they aren’t very expensive on a per monthly basis. An average policy can cost less than $50 a month for one million dollars worth of cover. Granted, the total amount isn’t as high as some policies, but a million bucks will still go a long way. On a weekly basis, this number equates to just over $12 a week. Considering that it’s easy to spend that sum in a store without thinking, £12 isn’t a whole lot of money. And, what you get for it is very valuable. Even if you don’t see the money, your family and loved ones will and that’s what matters.
Con: Can Spend Money Elsewhere
There is a strange dichotomy with life insurance. No one wants to die, so technically you are happy to waste your money. However, if you do die, there is no way to receive a return on your investment. And, the odds are pretty good that you’ll live a long if not happy life. As a result, the money you spend on insurance could be a waste. In fact, lots of people take out a policy when they hit later life and build it up that way instead. The alternative is to squirrel away cash which you could put to better use, such as enjoying life. After all, life is too short to worry about the future all of the time.
Pro: It’s Flexible
One look at affordablelifeusa.com will show you just how flexible life insurance can be for customers. In simple terms, there are lots of different policies to choose from, one of which will suit you perfectly. Take whole life and term life insurance as examples. For those of you that can’t afford to contribute to a fixed term agreement, there is a short-term alternative. That way, it’s possible to have some cover without putting all of your eggs in one basket. Indeed, lots of people are starting to see the benefits of term life agreements over whole life. Regardless of your needs, there should be a policy which suits you down to the ground.
Con: Policies Are Complex
Whereas some people think more choice is positive, others see it as a negative. There is no doubt that insurance policies are complicated at the best of times. So, when you add even more into the mix, the waters are bound to get muddy. Those of you that don’t have any experience in the field will see this as a big sticking point. Everyone knows that insurance companies aren’t the most trustworthy, and this just plays into their hands. If you don’t know what you’re looking for, there’s a good chance you’ll miss something important, especially when they move the goalposts. Unless you have above average knowledge or a specialist in your corner, the risks will never go away. Have you ever tried reading small text filled with jargon and industry terms? It’s almost impossible.
As you can see, there are two answers to every argument. So, making an informed isn’t going to be easy. The key is to opt for the side of the fence that feels more logical, or at least more comfortable. For example, there is an argument to make that says the money might be better spent elsewhere. However, if you worry about your family on a daily basis, a policy is a safety net which will keep your mind at ease. Alternatively, it’s possible to build up an amount of money to secure your family’s future without an insurance agreement. Then, you can spend your money how you please without any monthly contributions.
In the end, a life insurance policy is personal to the individual. As a result, no one can tell whether it is a good idea or a bad one. That is a decision for you, and for you alone.