Why Life insurance through an agency
Most people don´t realize that life insurance outside of work isn´t enough. They assume that by having a regular policy of $10,000 that is with their work will last if they transfer jobs or locations but they´re wrong. If they for whatever reason switch jobs they are required to get a new policy with their new age and in most cases it´s less than even $10,000
When you think about what you need to leave behind for loved ones, that´s only enough to pay for a funeral, but what about your loved ones. What about a mortgage payment for your spouse or extra income for groceries, or enough to pay for the car ect. Would a $50,000 policy last you 5 years or even 2 years. I don´t believe so. You´ll need at least $250,000 or more depending upon your current income.
Life insurance is not a luxury item
In a recent study, most people over estimated the cost of life insurance by 5 thinking life insurance was a luxury item. When you look at a $250,000 life insurance policy for a young couple in their 20´s the average cost of that policy ends up being something like $14 per month. This is absolutely worth the cost. That´s about the cost of your regular gym membership to be able to pay for your own life that´s absolutely worth it.
People should stop `fronting` life insurance
These mere $5,000-$10,000 policies are like someone fronting off of their parents policy when they are young this can be something that can be done, but it just isn´t enough. This practice of fronting isn´t something that is totally understandable but the best thing you can do as a young parent is to get a small $250,000 -$500,000 20 year term policy. This will last years of income for a spouse and not just for your funeral, but will cover mortgage payments, car payments and many other expenses that are necessary.
Who receives the life insurance
These are often called dependents or beneficiaries. They receive the policy after the life policy holder has deceased. This could be children or a spouse or a friend. They must have a social security number and be legal citizens of the United States to qualify by having a social security number or they don´t qualify.