Most people don’t purchase life insurance right after they are born because many people believe life insurance is about death, but it’s not. The earlier you decide to purchase life insurance the cheaper it typically is. So, buying it as a newborn should be incredibly inexpensive. The independent agents at Vargas & Vargas Insurance in Dorchester, MA can help you secure a life insurance policy for your loved one no matter the age.
Buying Life Insurance for Children
One good reason to purchase life insurance for your child is that it is very affordable. Another reason is that once the policy has matured, the policy can be cashed in. If you were to purchase a whole life insurance policy and pay the entire amount, the amount could be repaid when the child reaches his or her majority.
The Value of Life Insurance
There are two types of life insurance. The first is called term life insurance. It covers a specific period. Generally, it comes in increments of 5, 10, 15, or 20 years. If you die during the term, your insurance will pay your beneficiaries the entire amount of the insurance. This type is usually less expensive than whole life insurance.
Typically, life insurance policies grow in value over time. For a whole life policy, the rate is fixed for the entire length of the policy. The cash value of the policy will mature after 12 to 15 years, as long as the premiums are paid on time. You can cash it in after it has matured and use it to pay off debts, college tuition, or buy a home.
Life Insurance to Protect
For those adults entering the workforce, getting married, and having children, buying life insurance is an excellent way to help remove some of the burdens of the primary household earner. If the head of your household dies suddenly, there will be unexpected expenses that a life insurance policy could cover. Such costs include items for the funeral, utilities, mortgage, and auto loans. In Dorchester, MA, Vargas & Vargas Insurance can get you started on a life insurance policy today.
