Life Insurance

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LIFE INSURANCE

There is no denying the importance of a life insurance in modern day living. It is a morbid statistic, but the fact is the perils to our lives are increasing in number with each passing day. And with it, the average lifespan of people is lessening in years. Hence, there is a need for a guarantee that our loved ones would be taken cared of after our passing. Yes, again, it is not a pleasant thought, but as they say, everything’s eventual… including death. It is a fact that we have to face, and the sooner we realize it, the better it would be.

You see, once we have accepted the dictates of our mortality, we would be able to commence our preparation for measures that would assure the sustenance of the people we will leave behind, people whom we have loved during our lives.

The best guarantee that we could make ourselves is by acquiring a life insurance for us. A life insurance would ensure that the policy that goes along with it would be delivered in cash to the beneficiaries designated by the policy holder. This would give our loved ones enough resources to cushion the blow that our loss would bring.

Clearly, a life insurance policy is the most advantageous guarantee you could leave behind after your death.

But the problem is that a life insurance policy requires the payment of a premium. This premium varies in amount, depending on the value of the policy, and is payable for a variety of periods as well, depending on the kind of policy that is sought, whether it is term life or whole life. The payment interval is usually monthly, however.

The accumulated amount can be quite costly. And there will come a time when your income won’t be able to accommodate the payment of the premiums. It is a financial encumbrance that you would have to bear for many years.

Before, there was no way out of paying your life insurance premiums. If you cannot pay the same, you would have to surrender the life insurance policy for a price that is substantially lower than what you have paid for, and this isn’t even a guarantee as there are some requisites to accomplish beforehand. Surrendering the life insurance policy is often the case if you haven’t satisfied the premium come old age. Since older persons are considered higher risk investments by the insurance companies, their premiums become high as well.

This shouldn’t be a worry anymore. Today, you could already cash in on your life insurance policy. This method is called as settlement. You could be eligible for it for as long as you satisfy either of these two requirements:

1. You must be 65 years old; or
2. You should be determined to have an “ascertainable and limited life.”

Granted that these are not really some joyful circumstances to be in, settlement is designed with the baby boomer in mind. Senior citizens could now settle their life insurance policies for cash. The benefits of this are numerous. Let’s take a look at some of them.

1. With settlement, you’d receive more value for your life insurance policy compared to the usual surrender rate.
2. You won’t have to pay the burgeoning life insurance premiums anymore.
3. You’d receive the monetary equivalent of the life insurance premiums you’ve paid for and enjoy the same during your lifetime.
4. You won’t have to witness your life insurance policy degenerate into uselessness because of your failure to pay the costly premiums.
5. You could use the funds that can be derived from the said settlement to pay the financial demands of your latter years, such as hospital and medical bills.

Life insurance is still meant to benefit the loved ones we will leave behind. But when the said life insurance becomes uneconomical to pursue while you’re in the middle of your payment of the premiums, settlement is the way to go so as not to render what you have invested as fruitless.