The Realities of Life Insurance Policies
We’ve all seen the movies where star villains go on killing sprees.
They drive through the streets striking vehicles left and right, open fire in crowds and make human body shields out of random people.
While the scenes are exciting to watch, after the dust settles we rarely see discussions about who’s going to pay for the victims’ funerals or keep the grieving family afloat financially.
This, of course, is the difference between movies and real life. In the movies, a life insurance policy rarely gets mentioned – that is, of course, unless it is used as a malicious tool to kill off the loving spouse for financial gain.
But in reality, because there is a possibility of accidental death or even murder being true for everyone, policies are important. So let’s take a look at the realities of life insurance.
“Say Goodnight to the Bad Guy!”
While Tony Montana of the movie Scarface was a fun character to watch as he evolved from a poor Cuban immigrant to a rich drug lord, we know that behind the charm was a cold-blooded killer (well, for everyone but children). He killed tons of people in the movie and even predicted his own tragic fate with the famous line he spewed as he leftthe restaurant inebriated.
Unfortunately, murders are just as common in real life as in the movie. In fact, according to statistics from a recent Census report, there were 14,831 murders in 2007. That’s a lot of people who had to succumb to unfortunate tragedies and leave loved ones without heads of households to lean on.
Of course, with a life insurance policy, the family would at least be able to take care of funeral and burial expenses and be able to manage bills or pay off debts after the fact. It may even be able to pay for counseling the family will need to get through the experience. But without it, life for everyone would be even more difficult than it already has become.
“I Didn’t Mean to Do It It Was an Accident!”
Vincent Vega in the cult classic Pulp Fiction said this famous line when he shot Martin on a car ride with Jules. Although Vincent was a hardened criminal, the shooting was an accident. Unfortunately, this probably doesn’t make the tragedy any less devastating for the family that lost poor Martin.
Statistics from the Centers for Disease Control and Prevention in 2006 showed that accidental deaths are quite common. In fact, unintentional injuries alone caused 121,599 deaths out of a total of 2,426,264 deaths for the year. In those statistics were also unintentional fall deaths (20,823), motor vehicle deaths (43,664) and unintentional poisoning deaths (27,531).
In all of those circumstances, if a person like Martin was covered with life insurance, they would be able to provide their family with financial security. But some have found that adding on supplement life insurance options (also known as riders) like the accidental death supplement makes such a tragedy a little easier to cope with. Read: Avoid Paying For Car Insurance in USA
The accidental death supplement pays twice the death benefit than the standard chosen benefit (i.e. beneficiary would receive $500,000 instead of $250,000) if the death was caused by an accident rather than complications from old age. This helps the family get through the unexpected tragedy financially.
Hashing Out Life Insurance Types, Costs and Discussing It with Your Spouse
Sometimes, watching movies can remind you of just how tragic life can be. But since they typically don’t remind you to purchase a life insurance policy, Go Insurance Rates will take on the responsibility.
When it comes to purchasing coverage, there are usually three major concerns: 1) what type to purchase, 2) how much it will cost and 3) how you will discuss it with your spouse. Let’s look at these ideas a little closer:
Types of Life Insurance to Purchase
There are a number of different types of life insurance to purchase; however, the main two categories are permanent and term life insurance. Permanent life insurance covers you for the stretch of your life as long as you make your premium payments. It includes the sub-categories, whole, universal and variable life insurance.
Term life insurance, on the other hand, makes sure you’re insured for a specified amount of time and only pays out if you die during the term of your policy.
The Cost of Life Insurance
The cost of life insurance can vary significantly depending on the company you work with and the type of coverage – and insurance riders – you decide on.
If you go with a permanent policy, there’s no doubt that your life insurance rates will be significantly higher than if you go with a term policy. The reason term policies are cheaper is because they are only guaranteed for a specific period of time (10, 20 or 30 years are all common).
In addition, they don’t offer the benefits of permanent policies – the biggest being an investment reserve set aside for retirement later in life.
Talking to Your Spouse about Coverage
Discussing life insurance with your spouse, while often difficult because it represents an unwanted departure, is one of the most important aspects of the process. By discussing types of coverage, costs and the appropriate benefit amounts to provide for the family – riders included – you can ensure that everyone is properly taken care of.
While we know that there are tragic scenarios out there to run into, we hope that we never have to face them. But if we do, there’s no getting up and washing the fake blood off like in the movies; we must actually be prepared for the worst.
So if you currently don’t have a life insurance policy, now’s the time to make that purchase. Because when the credits roll and you make your way into the sunset, you want to look back upon your family knowing that you’ve left them financially sound.