Life insurance. You’ve heard about it, but do you really need it?
The purpose of life insurance is to ensure that your family and/or employees (if you are a business owner) are not financially affected from your death. This includes funeral expenses, any outstanding debts, or in the case of a business it protects your employees from unexpected costs or changes in income.
So, should you have life insurance?
It is important to take a look at your marital status, family, and your finances. If you are married, have dependents, and also own a home, it is definitely important that you have a life insurance policy. However, if you are single and renting a home, it doesn’t really make sense for you to purchase insurance.
Once you have decided if life insurance is right for you, next comes deciding on a policy. If you are a millennial, one option is Walnut.
Life insurance is not a ‘premium membership’, but Walnut offers optional premium membership benefits. They provide simple plans, instant coverage and exciting member benefits. The core membership bundle includes life insurance paired with Headspace for mental health, Classpass for fitness on-demand, and Dashlane for password management. These plans start at just $10, which makes this policy incredibly accessible!
However, insurance policies are not a one-size-fits-all so it is important to do research on which one is best for you and your budget. There is also a big difference between term and whole insurance. Term life insurance is more affordable, and makes sense if you have dependents that will likely become financially independent once they are older. However, whole life insurance is a good option for those that want their policy to act as an investment and give them guaranteed cash returns.
Keep in mind that if you have a smaller budget, it is best to opt for a smaller policy than to not have a policy at all.