Earning, saving, and investing your money is an ongoing process that you engage in every day to build your financial security. But have you also taken steps to protect the legacy you are leaving behind? When a tragedy occurs, your family would be hit with massive expenses and the loss of your income right when they are emotionally at their weakest and most vulnerable. What will happen to your carefully constructed financial plan if you don’t have life insurance?
Most financially savvy people know they need life insurance, and they know that procrastinating on this decision could put their loved ones in a devastating situation. But people still put off buying insurance often because they don’t feel confident in their knowledge of the products, and that lack of knowledge makes them feel uncomfortable with the process. If this situation is the case for you, take the time now to learn more about life insurance. You’ll feel much more in control during the buying process if you are better informed.
Start by understanding the difference between term and whole life policies. Term insurance is less expensive, and you can cancel at any time, but when you cancel, you’ll have no cash value. Whole life policies cost more, but they build up a cash value that you can borrow against or cash in later. Take a brief life insurance policy quiz from Health IQ to test your knowledge and to understand more about the differences between term and whole life and other common terminology in the industry.