Choices in Life Insurance
November 24th, 2008
Most of us know enough to have auto insurance when we do any amount of driving in our car. And having homeowner insurance when you own your own home just makes perfect sense. Then why do many of us put such a low priority on getting any sort of life insurance – especially when we’re younger? The answer usually lies in what’s called ‘the probability factor’ and it keeps a lot of people away from getting the life insurance they should have. What it means is that most people – and especially when you’re talking about younger people – tend to believe that any sort of accident, even one causing death, will only happen to the other guy.
Because people are generally optimistic about their lives, the idea that any sort of accident could happen to them is usually the furthest thing from their mind. Death is what happens to old people, they think but of course, that’s not the case and in fact, many automobile accidents causing death happen to younger people every day.
Group Coverage Isn’t Always Best
Having life insurance – especially when you’re young and starting out with a new family – is simply one of the most responsible purchases you can make for taking care of your family. If you stop to think about what would happen to your family if you were suddenly taken out of the picture, you’d know how hard it will be, not only emotionally but financially as well.
Group Coverage vs Personally Owned Coverage
You may not need millions and millions of dollars worth of coverage, but you should at least acknowledge that if the need is there, you should have enough for your family to be comfortable after you’re gone. Many people have group insurance coverage at their workplace, but what they have to remember is that if they change employers, the coverage generally doesn’t follow them to their next employer. And if you do want to continue the coverage to another employer, it’s usually very costly to do so. Having ‘personally owned’ coverage is usually the best option if you know you may be switching employers over the next few years. That way, you can simply take your coverage to wherever you go to work next, knowing that you and your family are covered.
photo credit: Akuppa