Not Just An Extra Expense

After my father died at the relatively young age of 58, I suddenly realized that we can "go" anytime. You just don't know when and how. That year I decided to check on some life insurance quotes from my insurance agent friend. Life insurance makes even more sense now since I now have a family who depends on me and children who still need their basic needs and education if ever something terrible happens to me (I pray not!).

I am glad that I chose a whole life insurance policy since I was still relatively young then -- only 30 years old and my premiums are cheaper then. The fact that I took out a whole life insurance policy means that I'll be locking in my premium rate, although it's more expensive than term life insurance. The way it's explained to me, if you are young, it may be wiser to spend for whole life insurance policies while your premiums are low especially if you have the budget for the relatively high premiums (compared to term life insurance). If you are on a tight budget though, term life insurance cover you for a certain period of time, typically a year, at a lower rate, but the premiums go up every year. This would be a better option if (1) you are older, (2) you can't afford the premiums of whole life or (3) you just want to add more insurance coverage after you've already obtained whole life.

Many people do not really believe in insurance and in fact think of it as an extra expense, but you really should think about this: What will happen to my children if I'm gone? I for one would like to make sure that they would be covered.