News Articles
5 common life insurance questions – answered!
07 July 2011
Life insurance is not about dying in peace – it’s about living in peace.
5 common life insurance questions – answered!
“Studies show that 40 percent of adult Americans have no life insurance whatsoever, and over 50 million people in this country (America) lack adequate life insurance. Other studies of widows and widowers whose spouse died prematurely (between the ages of 30 and 55) show that less than 25 percent felt their spouse had adequate life insurance. Lack thereof has caused many widows and widowers to have to drastically change their lifestyles, in ways like taking on second and third jobs or working longer hours, borrowing money, withdrawing money from savings or investment accounts, and/or moving into smaller, less expensive housing.” – J.D. Powers & Associates
In today’s world of high-finance, it’s easy to get lost in the myriad of financial products available on the market. Financial buzz words change from day to day and for the uninitiated, even a simple concept such as Life Insurance can get bogged down in the quagmire. Recent global studies show that though life insurance is absolutely necessary, too many people are living without it and many who have are not adequately covered.
Below are five of the most common questions asked about life insurance by a cross section of ages, genders and ethnic backgrounds and the answers proffered by the Insurance agents at BAF Insurance.
1. I am under 30 years old and single without children; why do I need life insurance?
Perhaps the answer will come by first asking yourself the question, “what plans do I have for my future?” If your future includes getting married and having a family, higher education that will lead to a higher standard of life, or buying a home, then you need life insurance. And the sooner the better. Life insurance can provide for your family in the event of a life-changing occurrence such as untimely death, disability resulting from an accident or other catastrophic events in your life. It gives you the peace of mind of knowing that your family’s lifestyle will be maintained and your goals for your children can be achieved even if you’re not there.
2. How much life insurance do I need?
That depends on your present circumstances and future plans. A 25 year-old man with a wife and three children will have different insurance needs than a single 35-year old woman with no children but caring for a disabled sibling. Each case is different and a professional Insurance Agent, such as a BAF Insurance representative, can help you to evaluate your needs and recommend the right mix of insurance to suit your individual circumstances.
3. My job provides life insurance. Do I need to buy additional life insurance?
Simply put – YES. Jobs are never guaranteed. The recent worldwide recession resulted in the loss of millions of jobs globally. Many of these ex-employees thought they were secure because of the positions they held or their years of service. They were wrong. The only real insurance security you can take with you wherever you go is the one you have bought for yourself.
4. I am a almost retired and my children are all grown up. What’s the point of life insurance if it’s only useful when I die?
Unless you have other arrangements to take care of your final expenses when you die, you need life insurance. There are many stories of families mortgaging houses, and borrowing from friends bury a relative. You can prevent that by having life insurance. Also, remember, life insurance is for the living. If you are buying a home or taking out a business loan, life insurance is an essential component in the approval process.
5. I have health issues. Can I get life insurance?
Absolutely! There is a vast array of life insurance products on the market; one will fit your need. A professional Insurance agent can provide you with the choices that best suit your situation. If the nature of your illness doesn’t qualify you for a traditional insurance plan, an option such as End of Life insurance, for example, requires no medical examination and is designed to cover final expenses.
Remember, it’s not good enough to simply pick a figure from the air to determine the amount or type of life insurance is ideal for you. Free financial planning is offered by BAF Insurance Company (Cayman) Limited. During a financial planning session, all your financial needs are taken into consideration and a comprehensive plan that includes insurance and investments can be designed to ensure you achieve your goals.
