Life Insurance: Should You Buy It?

Life insurance is an efficient financial safety tool which ought to be taken into consideration when planning one's budget. It can cover various expenses, ranging from tuition fees to funeral costs, as long as the insured meets the contract requirements. Lately, more and more people have started to take interest in the topic of insurance. People also trust the insurance industry and are aware of how important such financial protection can be. Thus, what makes insurance so indispensable? Does everyone need it? Should YOU buy it?

Life insurance is known to be ideal for people with small children or who find themselves in transitory (or even permanent) financial difficulty. The financial protection doesn't only cover your own personal needs, but it also helps protect your loved ones (especially your children), your future and, in some cases, your assets. Life insurance is a mare fraction of the insurance industry. You can buy protection for almost everything and insure your cat, your dog and your legs - all for a good price. What makes life annuities different is the practicality and overall usefulness of such investments.

Not everyone needs insurance, though. Singles who are utterly independent, for example, can miss out on such policies. As long as nobody depends on their income and they solely have to provide for themselves, insurance can be taken out of the equation for a certain period of time. If, however, certain expenses such as funeral costs cannot be covered by the person in question, purchasing a life annuity may be a very good idea. The last things we wish upon our loved ones and relatives are bills and additional expenses (in addition to the grieving, in the worst case scenario).

If you are searching for a good insurance policy, keep in mind the following:

1. The best option for your average Joe is term life insurance. It's cheap, effective and offers good protection. Other options include whole life and universal life insurance, which offer unlimited coverage at higher fees (whole life) or at a higher risk (universal insurance).
2. Don't buy more insurance than you need: a simple and efficient way to find out how much protection is ideal for you is taking your yearly salary and multiplying it by eight.
3. Hire an independent insurance broker to help you. Independent because there are smaller chances for him/her to be biased. Check his references and make sure you are working with a professional.
4. Compare insurance quotes. Lots of website offer free online insurance quotes. A quote is the estimated cost of an insurance policy. By this means you'll be able to compare rates the easy way, and we all know how important rate comparison is when shopping for insurance.

Last but not least, remember: if you don't want to undergo a medical examination, or if your health condition may create difficulties to your insurance cause, you can buy no exam medical insurance at a slightly higher price.