Is It Time to Buy Life Insurance?

The recent collapse and subsequent bailout of insurance giant AIG have left some consumers skittish about purchasing life insurance policies. With the collapse of such an industry titan, some Americans are wondering if now is really a good time to buy life insurance protection. Actually, AIG has assured its customers that the company’s insurance units are doing just fine. This area of the corporation is well-capitalized, and, even in the worst-case scenario, life insurance policies are backed by state guaranty associations that step in when insurance companies go under. So, despite the panic, now is as good of a time as ever to purchase life insurance.

Uncomfortable but Necessary

No one likes to think about or plan for their own death. It’s an uncomfortable and unsettling subject. But just like drawing up your will or picking out a burial plot, buying life insurance is something you have to do. Failing to do so will directly and profoundly impact your loved ones. Life insurance is critical if you want to provide for their well-being after you die. A life insurance policy will make sure that your income is replaced, your debts are attended to, and that your family has the means to send children to college, retire a spouse, etc. Putting it off will only make the policy more expensive, so you’re better off taking care of it while you are relatively young and healthy.

Employer-Subsidized or Individual Coverage

If your employer doesn’t provide you with a life insurance plan by default, you need to look into individual policies. You can get multiple quotes on policies simultaneously from many different sites on the Internet. For people in good health, a term life insurance policy is very affordable. If your employer does offer group life insurance coverage and you have not opted into the plan, do so at the first chance you get. More than likely, this coverage will be the cheapest you can find because it is subsidized by your employer.