Most experts agree that everyone, from birth to death, should have some form of life insurance. There may be individual situations where it is not absolutely necessary, but in general, the costs that a family can accrue when a person passes away can be substantial. Even those that live with considerable personal wealth typically need life insurance to help loved ones manage finances and distribute their assets.
Term life insurance is the most common form of life insurance. Term life insurance typically offers the best combination of premium and benefit amount. Depending on a person’s age, they can receive $500,000+ in life insurance for as low as ~$40 per month, and although the costs can increase substantially as a person ages, very few forms of life insurance are going to offer a better value.
However, that does not mean term life insurance is right for everyone. There are many situations where term life insurance is not the right choice. These include:
- Better Life Insurance Options – There are situations when there are better life insurance options out there for your finances. For example, if you can afford it, limited pay whole life insurance can be highly advantageous – especially at a younger age – because you can pay it for 20 years and have it for life without needing to pay into it again. Some life insurance also has lifetime options, or options that help with retirement. These typically have higher premiums, but when they make sense financially they can be better options for some families.
- Unsure About Payments – Life insurance is only an asset for as long as you can afford payments. The premium payments are typically very low, but if you suspect you may run into a situation where you cannot afford them, then it may not be worth it until you are certain you’ll be able to afford the monthly premiums.
- Potentially Treatable Health Conditions – Some forms of life insurance in Houston require a medical exam before offering that level of insurance. If you have a treatable health condition, you *might* want to wait until you’ve treated the condition before obtaining the life insurance, as it will reduce your premiums. This is not always the right choice, however, so it might be best to reach out to discuss options with Kaia Insurance Group.
Some people may argue that those that have wealth accumulated may not need life insurance. But there are many reasons to still consider it. First, it protects your wealth, so that any expenses accrued after loss can be recouped. Second, it ensures that, even if your financial situation changes, you still have something available for your loved ones. Finally, life insurance can be a way to transfer wealth more easily than assets may be, as those assets may not be something a person can access quickly.
Term life insurance is only one of many life insurance products. But it is still a very popular, frequently recommended one for those in Houston looking to make sure their families are supported. Let’s talk about all of your life insurance options at Kaia Insurance Group. Contact us today to get started.
