3 Questions You Should Ask About Your Life Insurance Coverage
Insurance is an important thing to think about, but unfortunately it can also be a tricky subject. Life insurance is both especially important to get right, and something people are especially unwilling to think about Still, it is prudent to ask yourself a number of questions about life insurance policies to ensure you are making the wisest decisions about whether to get it and under what conditions. Here are three of the central questions you can ask to assess what your wisest course of action is.
1. Do People Depend On Me?
The foremost question is to ask who will be financially affected by your death. If you have family, especially descendants, life insurance is a vital way to secure their financial futures, especially during the difficult time of bereavement.
2. Where Else Might Money Come From?
If you do have dependents, think about where else they might derive income from should you pass away. Life insurance policies are only one option here, whilst other possibilities might include houses, land, or royalties. Keep in mind these may not always be suitable for sales, and further that taxes can be a big drain on such inheritance.
3. Who Else Might I Donate To?
Even if you are without dependents, you may still find that life insurance policies are the best way to give to a cause you wish to support. For example you may wish to donate to a local museum or a charity. In many situations a life insurance policy is the best way of achieving this.
These are, of course, not an exhaustive list of considerations, but they are an excellent starting place for thinking about life insurance policies. If you have questions of your own and wish to discuss your insurance, please contact us at your convenience.