This post is sponsored by Mason Finance. Please note that, as always, any personal opinions reflected in this post are my own and have not been influenced by the sponsor in any way.
I have seen some sad stories in my Facebook feed lately. It’s sad enough to learn of someone being diagnosed with a serious illness or passing away suddenly. It’s even worse to see a family scrambling to handle basic matters. We all know we’re going to pass one day but do most people plan for an unexpected life threatening illness or sudden tragedy? I’ll bet there are a lot of us that haven’t.
We’re all familiar with life insurance. We all should know that no matter what our line of work is it’s important to have so that your family is cared for when you pass. It’s a difficult enough time dealing with the loss of a loved one without compounding that by adding in financial stress.
If we try to plan ahead by purchasing life insurance, either term or whole, we are taking a big step towards making things easier for our families after we pass. Term life insurance offers protection for a specific period of time, often 20-30 years or so. It is generally less expensive than whole life insurance, which provides protection for you through your whole life as long as you pay your premiums.
Something you might not be familiar with is an accelerated death benefit rider. An accelerated death benefit (ADB) is a special option you can add to a life insurance policy that will allow you to receive a portion of the death benefit while you’re still alive. Someone with an ADB rider might advance a portion of the death benefit if they’re facing a terminal illness or life threatening diagnosis. Alternatively, someone with an ADB rider might also advance a portion of the death benefit to pay for long-term care services or if they’re permanently confined to a nursing home and are incapable of performing certain certain activities of daily living.
Life insurance is an important decision that should not be taken lightly. It may be confusing for some. My best tip for determining what type of life insurance to get is for you to sit down and seriously consider your current and future income and debts, as well as your health, savings, budget, employment status and similar things. Shop around and compare. Be sure to ask questions about anything you aren’t 100% clear on. Keep in mind that it’s perfectly fine to discuss life insurance with friends but be sure your facts are straight, you might want to speak to an expert to be sure.
Do you have any tips for purchasing life insurance?