Life Insurance

Many people wonder who exactly needs life insurance. The answer is that everyone in your family should have some kind of life insurance. As the head of the household, you might need the most life insurance. However, you don’t want to be left in the lurch when someone else in your family needs life insurance. That means that your spouse, your children, your baby – anyone living under your house needs some type of life insurance coverage.

In light of this common confusion, here are some reasons why you need to acquire a life insurance policy that protects everyone in your family:

  • It gives you time and funds: The purpose of life insurance is to give your family the means and money to bury you, and then to live comfortably as they decide what their next decision should be. If you pass away, you want your wife to have some money to provide for your children, find a job, buy a house, etc. Do not make the mistake that you won’t need this valuable safety net if your child or dependent passes away. A life insurance policy can provide you with the money to take time off of work to grieve or do whatever needs to be done.
  • Thinking of the future: Some life insurancepolicies allow you access to cash out the policy or take out some other monetary value. It can be used to pay for college tuitions, hospital bills, nursing home fees, etc. Also, this money is usually tax free. This makes it an invaluable source of money for you and your family in the future. Even if you’re not expecting a family member to die, taking out a life insurance policy on them may give them a step up in the world in the future.
  • Preparing for any unforeseen occurrences: You might expect an old or sick family member to pass away, but you might not be able to foresee the death of your spouse or your dependent. You don’t want to be left without savings if something unexpected happens to a family member. Our policy here at Sogo is that it is better to be prepared for the future than be sorry when you aren’t prepared to handle an unexpected disaster.

Here are some questions that you should ask your life insurance company in order to make sure that you and your family are prepared for the future:

  • Who is currently covered under my policy? If you just gained a spouse, had a child, or gained another dependent, you need to make sure that you change your policy to include them. Most insurance companies will have a window of opportunity for you to make these changes. If you already have a family and they are not all included under your life insurance policy, then you will need to ask when and how this can be rectified.
  • Why would you deny someone insurance? Some of your family members may not be able to acquire life insurance. It’s very important that you know why your current insurance company denies insurance to someone under your household. It might have to do with their age, their health status, their public records, etc. Other insurance companies may provide them with life insurance, while other won’t. You need to make sure that you research other insurance companies to make sure that everyone in your family is covered.
  • How much coverage does each person have? Not everyone in your family needs the same amount of coverage. Typically, the adult who makes the most money needs the highest amount of coverage. Children will not need as much coverage, because they are less likely to pass away and it will not take as much money to bury them. We suggest that you sit down with a representative from your insurance company to decide how much coverage everyone needs.
  • How long is each person covered? Most insurance companies do not guarantee life insurance for life. Your life insurance will run out at some point, but it will also increase over time. It is important that you know when to expect an increase in the cost of your family’s life insurance policy. That way you can prepare yourself for paying for life insurance as long as you need it. Your dependents may start their own families before your insurance policy of them ends. It’s important that you figure out the particulars of how to cancel or transfer your policy so that you aren’t stuck with a life insurance policy that you don’t need.
  • Can the life insurance policy be cashed out? Not every insurance company will allow you to cash out your life insurance plan. Before making plans for that money, make sure that you it’s even an option.Then make sure that you know what time limits on any such policy. You may only be able to take the policy out when the person insured reaches a certain age, or you may be able to take out the money 15-30 years after you take out the policy. Make sure that you know the ends and out of your policy.
  • What is the claim process? When researching your life insurance policy, make sure that you understand the claims process. We suggest that you write down when you should make a claim, who you should call, and how long it will take for the claims to process. Keep this information in a safe place that is easy to access. This will ensure that you get the help that is rightfully yours with as little hassle as possible.

SOGO wants to help you find the right life insurance for your family and make sure that everyone in your household is protected. Contact us if you need help with anything insurance related. We’re here to help you and your family.