What exactly is insurance?
All forms of insurance protect an asset - something valuable - from the possibility of loss. Some types of insurance, such as auto or homeowners policies, provide protection from a loss that may never occur. If a loss occurs, benefits are usually paid to the policy owner. These types of insurance may be required by government in order to legally drive or by banking institutions in order to obtain a mortgage loan. Even if not required, it makes sense to most people to pay a small amount every year in the form of premiums in order to cover the possibility that they may incur a very large financial loss sometime in the future. People pay premiums for the peace of mind they receive knowing that they will not be devastated financially from the loss of a costly asset - their car or home.
Why buy life insurance?
Life insurance protects the economic value of a human life against death, a loss that is certain to occur but at an uncertain time. Benefits are paid to beneficiaries, people or institutions that the policy owner designates.
The occurrence of death immediately creates the need for funds to pay final expenses - funeral costs and medical expenses incurred at the end of life. In addition, and greater than these, may be other ongoing expenses for which family members could be responsible when a loved one dies. There may be mortgage payments, tuition and school expenses, and repayment of debt among many other possible expenses for which beneficiaries may be responsible.
When choosing to buy life insurance, people balance the amount of insurance they feel they need to cover anticipated expenses with the amount of premium they feel they can afford. When a life insurance policy is issued, it immediately creates a source of funds that is much larger than the premium amount. It makes sense to pay a calculated smaller amount periodically in order to provide an adequate benefit exactly when it is needed to pay expenses incurred at death. The initial and ongoing payment of life insurance premiums can bring peace of mind through knowing that loved ones will be able to more easily pay expenses and maintain a suitable standard of living.
When is the best time to buy life insurance?
Because premiums are lowest at younger ages, it makes sense to start a baseline insurance program at the youngest possible age. Premiums are also lowest for persons in the best health. Woman’s Life, like other insurance companies, evaluates each applicant for medical and non-medical risk factors and assigns a risk classification to each. This process is called underwriting and it ensures that each person who applies pays an appropriate premium for the risk they present. When you purchase life insurance early in life, you are able to buy an amount of coverage for a lower premium than would be paid at an older age. You also protect yourself from the possibility that future health changes might make comparable coverage more expensive or impossible to obtain.
Can Woman’s Life meet my life insurance needs?
There are a wide variety of insurance plans and ranges of benefit amounts because individual needs vary greatly. Some people without dependents who carry minimal amounts of debt may only need final expense coverage. People who have dependents, own a home or business, or who carry greater amounts of debt have larger life insurance needs, either on a permanent or temporary basis. Some people want to leave a legacy for their heirs, their church or an important charity, and life insurance may be suitable for this purpose also. Woman’s Life offers both permanent insurance plans (Whole Life Insurance and Universal Life Insurance) and temporary insurance plans (Term Life Insurance) in amounts adaptable for the insurance needs described.
For more information, request a free, no obligation needs analysis with a Woman’s Life representative.