When individuals buy life insurance, there are various reasons they buy it. Ultimately, making the decision to buy life insurance provides financial security for yourself and your loved ones. A question that probably crosses your mind is the importance of life insurance. Do I really need it? Continue reading to learn more about the importance of life insurance.
What Is Life Insurance?
Life insurance is a contract between an insurer and a policy owner. The insurer pays into a plan and assigns beneficiaries to the account. When the insured dies, in exchange for the premiums paid, the life insurance plan guarantees the beneficiaries will be paid out. Buying life insurance protects your spouse and children from the potentially devastating financial losses that could result if something happened to you. It helps pay off debts, living expenses, and medical or other final expenses. Two in three individuals in the U.S. buy life insurance.
Steps In The Life Insurance Buying Process
Anyone considering buying life insurance may get overwhelmed by the different policies available. Life insurance is typically a much longer process compared to other insurance policy-buying processes. However, purchasing life insurance doesn’t have to be complicated. Below, you will find four steps that will simplify the life insurance buying process.
- Determine your goals
- Determine how much insurance you need to meet your goals over time and determine what you can afford to pay
- Research the available plans for life insurance that can help meet your needs
- Choose the type of insurance policy that best meets your needs
Reasons To Buy Life Insurance
Individuals buy life insurance for a variety of reasons. Ultimately, a life insurance policy provides individuals with lasting peace of mind by assuring them that they have left behind a legacy. The most common reasons for buying life insurance include the following:
- Guaranteed protection
- Replaces income
- Tax-free benefit
- Guaranteed cash value growth
- Dividend potential
How GMS Comes Into Play
Life insurance is one of those things that just about everyone needs but far too few people have it. When your life changes and priorities shift, the right life insurance policy can provide you with options for protection and growth. Luckily, GMS now provides employers and individuals with life and disability insurance at a lower monthly rate. Do you want to feel secure and protected? Contact us today to learn how you can get covered now.