Life insurance: Cheaper than a night out (& more important)

by Joan Cleveland, CLU, ChFC, REBC, SWBC PersonalHUB

In your 20s to 40s, life is all about new experiences—whether pursuing your career, starting a family, taking that bucket-list vacation, or simply enjoying the freedom of youth. With all the excitement, planning for the future might not seem like a top priority — and considering what will happen after you pass, it likely ranks even lower. However, obtaining life insurance during these years can be one of the smartest financial decisions you make, and surprisingly, it might even cost less than your next night out.

What is life insurance?

Before purchasing life insurance, it is important to understand what, exactly, it is. Life insurance is a product intended to provide financial support to your loved ones when you die. Life insurance policies are a contract with the insurance company that states that, in exchange for premiums, the insurance company will make a lump sum payment to your designated beneficiaries upon your death. Your beneficiaries can then decide what to do with the proceeds. These lump sums represent the death benefit.

 

continue reading »