What Could Happen

A Road Less Traveled

One topic that people usually do not enjoy discussing or even thinking about is insurance, especially life insurance. If you are single or a young couple with no children, you might not need to worry about this expense as of yet. But once you invest in a home and you have little ones running around, you need to consider their and your protection in the long run in case something happens. As you decide to protect your family’s well-being, you should carefully consider all options.

Not All Are Created Equal

There are several types of insurance. Whole life gives you a prescribed benefit in case of an accident and offers a residual and increasing cash value as premiums get paid over time. The next type is term life insurance, it also has prescribed death benefit but no cash value if there is no death. In other words it is a chance one takes of whether or not one would pass away during the term. Universal life is the next type and it is a combination of the first two. It gives you both a cash value and a prescribed benefit but the cash value is lower than in whole life but the pay-off upon death is much higher than the premiums you would get with whole life. What happens is with a universal life policy some of your premiums get invested in a term policy, and some – in a whole life policy so at the end some of your premiums build cash value. The last type is variable life but it is just a version of universal life. Some of your premiums with variable life go into a term policy and some are invested into a stock or bond mutual funds. In a stable market these types of policies can pay off very well.
Which one should you choose for your family? Term life would cost you the least amount but again consider all options and how each would fit within your budget and goals. You also need to figure out how much life insurance you should buy. If you search the internet you will find as many recommendations on this as there are websites. As a rule of thumb, you should aim to have an insurance benefit anywhere between 6 and 10 times your current earnings.

More Food for Thought

Since we are on the topic of protecting your future, let us not forget another area of your life that needs to be safeguarded, and that is your identity. You should make it a habit to check your credit report at least once a year to monitor inquiries and any new accounts opened. However, the only way that offers a constant peace of mind that your identity will not be harmed is still enrolling in a credit monitoring and identity theft service. The cost of this small investment cannot be compared to the value of you or to the possible painful headaches and monetary damages that it can prevent.