Don’t Be In a Hurry To Buy Life Insurance Policy
Insurance | September 23, 2009 at 10:54 amLife Insurance is the best way in which you can tell your family that you care for it! Many of us are covered under life insurance from various companies. Recently life insurance costs have soared up higher than ever in a decade. The agents are asking us to buy insurance now because according to them the prices will simply rise higher later. So what are you going to do? Follow the advice of the agent (which may be deceitful and done for business boosts) or just hang around and wait for the prices to fall?
The life insurance cost hikes are an outcome of poor national economy. As is observed, we are out of recession and as the economy will improve, you’ll see the life insurance costs lowering down. As financial experts opine don’t take life insurance at all unless you really need it. If you have people who are dependent on you and will be benefited by the insured amount after you die, you go ahead and get your life insured. Otherwise the best thing you could do for that person is to just save some money for him/her instead of that insurance. Open a bank account in the name of your wife or children and then deposit money in their account on a monthly basis and see it grow. Why do you want to invest in life insurance and make your family member undergo all those insurance hassles for claiming the amount after you leave this world? There are many cases where people have not been given the full insured amounts after the insured person died.
You might want to gift your child or any dependent family member with financial security after your death. If your child is well placed in his career, he’ll really not need your insurance. Buy it only for giving your child basic financial 
protection. On the other hand, you are paying huge premiums now. Instead why don’t you save up the money you‘re paying on premiums? At least that money is with you and not with some company. Many parents are of the opinion that life insurance works like a wealth asset for their children. Remember that it’s only for taking care of their basic necessities. Don’t make your child feel that your life insurance is like a big fortune waiting for him/her after your death.
Don’t take long insurance plans. If you are actually wealthy enough to save for your dependent don’t take insurance at all. Take it only for the period you think you are poor enough to not be able to finance your dependent. 
Have a specific time plan in which you think you’ll have enough money to save up for your child/dependent. It may be 10 years, 15 years or 20 years depending upon how old you are and your present and future income. Don’t take it for longer than that.
Of course life insurance might give you tax relaxation in some cases. On the whole, high premiums and not urgent necessity to buy it makes insurance something that I can do without.
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Man that is terrible advice. A young person can get $100,000 in life insurance for $10 a month. That could allow their spouse to remain in their home if they were to die. $120 is not a lot for that kind of financial security.