UNITED STATES—The COVID-19 pandemic did a great job of bringing most of us with the feet on the ground. If last year we were worried about Artificial Intelligence and how technology could affect our future, now it’s all about making it from one day to another.
On an even grimmer note, this virus showed us, clear as day, that the systems we built and like to rely on are fragile. The economy, national health system, and political leaders are all prone to errors and mistakes. But it also showed us that life and social connections are precious in ways we didn’t know to appreciate before.
So, if you’re currently pondering the idea of life insurance (which is quite a normal reaction nowadays), it’s important to understand all its implications. As such, here are three important factors to consider, before signing anything:
#1: It’s Not Set in Stone
Many people avoid getting a life insurance policy if they are single or have a stable financial situation. However, if we are to learn anything from the current situation is that nothing is set in stone.
Life could flip over on you in a second and there’s nothing you can do about it. Still, if you have a few backups (like the life insurance policy), you can still try and make sense of what’s just happened.
So, even as a single person, with a stable financial situation, you may want to plan for the long-term and start such a policy. This way, should you start a family at a later stage in life, you already have something to leave behind.
In addition, as the policy owner, you can transfer your life insurance policy to another person, in case the situation changes from the moment you opened it. Also, the beneficiary doesn’t have to be a life partner or offspring – it can be anyone you want.
#2: It’s Designed for Protection
The main purpose of this policy is to protect your loved ones, in the event of your passing (timely or untimely). While we don’t like to think about this aspect of life, it is inevitable, and nowadays, it seems a lot closer than usual.
So, if you want to make sure your loved ones will be protected (from a financial point of view) even after you’re gone, this is the best way to do it (unless you can leave them a generous inheritance).
#3: Don’t Panic Buy
It started with mountains of toilet paper and hand sanitizer and it moved to more serious products, like life insurance. Sadly, many people went into panic mode and started buying life insurance
However, panic is never a good guide when it comes to important purchases. It’s important to take your time, calculate your possibilities, and analyze all the products that may be a good fit for you.
Also, it’s important to compare similar products (from different providers) to understand if the difference in pricing makes sense. There can be quite a gap between term and permanent policies, which is why it’s important to understand all the specifications.
The lockdown and all the related health issues are quite difficult to support, but it’s important to keep our calm and act from a place of reason. Life insurance can be a great way to protect the ones you love, but it’s important to think this decision through.