What do you do when you come into a large sum of money? Well, if your my brother-in-law, you go out and buy life insurance to insure that your wife and kids can continue to live a nice life without worry far after your dead and gone ( if that happens sooner then later! ).
Actually, getting life insurance should not just be for the those with extra money. If you are responsible for a large chunk of income that your family depends on, then life insurance really needs to be something that you look into and try to figure out if you can afford it. The piece of mind you get from knowing that if you were to suddenly not be around anymore that your family would still be taken care of is something that lifts a heavy burden off your shoulders. Think about how they would pay for your burial, or how they would go to college, pay for their weddings, or just pay the mortgage or grocery bills a few months after your gone?
Some of the better life insurance programs that are available are rated in the Wall Street Journal and carry high ratings to ensure that after you invest money into their program, they do not run off with your money or lose it in bad investment choices. One such company to carry your policy with would be Fortis life insurance as they offer multiple plans and policies to fit any type of situation.
Here is a snippet of what life insurance is and the 2 main policies generally offered:
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money (the “benefits”) upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger payment. The policy holder typically pays a premium, either regularly or as a lump sum. Other expenses (such as funeral expenses) are also sometimes included in the premium; however, in Australia the predominant form simply specifies a lump sum to be paid on the policy holder’s death.
The advantage for the policy owner is “peace of mind”, in knowing that the death of the insured person will not result in financial hardship for loved ones.
Life policies are legal contracts and the terms of the contract describe the limitations of the insured events. Specific exclusions are often written into the contract to limit the liability of the insurer; common examples are claims relating to suicide, fraud, war, riot and civil commotion.
Life-based contracts tend to fall into two major categories:
Protection policies – designed to provide a benefit in the event of specified event, typically a lump sum payment. A common form of this design is term insurance.
Investment policies – where the main objective is to facilitate the growth of capital by regular or single premiums. Common forms (in the US) are whole life, universal life and variable life policies.
Just be ready for the type of policy you think you need for the future based on your current lifestyle and future changes that might come sooner then later.