Sudden events may make you realize that life insurance is not just something you need but in reality, something you want as well – to make sure that your family, dependents, business, and legacy are all protected.
The sweet-spot for buying coverage is during your 30s or 40s – where you are given the best rates.
If the primary breadwinner in the family passes away suddenly – in an accident, by an unexpected illness or even of natural causes – especially in a foreign country, the costs and paperwork associated with repatriation can make a tragic event even worse.
Investing in life insurance is a way to keep pain and expenses down to a minimum. It ensures that your children can go to college and that your family can live a comfortable lifestyle. Getting enough coverage on your life insurance will rule out scenarios in which a tragedy becomes even more difficult due to financial concerns.
There are two main types of life insurance products – term and a whole life. Both of which are very discussed topics in personal finance.
A term (temporary) life insurance provides protection for a specified period of time, like a term of 3, 10, or 30 years. Term is popular due to its simple structure. It’s the most affordable coverage, and all it offers is a death benefit. The premium you pay on the insurance stays the same each year during the term. The downside is that once it expires, the price has gone up, as you’ve gotten older.
A whole life (permanent) insurance provides a death benefit for the entirety of your life and is also used as an investment. A portion of the premium you pay is set towards a cash value account connected to the policy which grows on a tax-deferred basis until you withdraw or borrow from the policy.
About the O&G Research Team
The O&G Research Team holds Series 65 and Series 3 certifications and are experienced traders in international financial markets.
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