Life Insurance: Should You Have Coverage?
In general, people who get a life insurance policy are concerned with the welfare of the loved ones who are directly dependent upon them. Should they experience bereavement of the principal earner, their financial situation could quickly become dire.

Many people have become aware of how slippery the slope towards poverty has become. For many families, all it takes is one critical event and their savings could be wiped out by numerous and continuous expenses. Especially during a tumultuous economy, the primary earners of the household, often referred to as the head of the household, may cause undue financial hardship to their family if they should fall ill with a terminal disease or experience an untimely death.

Although anyone can theoretically purchase a life insurance policy, there are some classes of individuals who will benefit from better ratings due to the classification system of the life insurance industry. For example:

• Young males who do not smoke with good medical history can be covered for as little as $90 per year.
• Individuals who do not take medication and have no history of medical conditions get preferred rates.
• The general population does not get preferred ratings; rather, they tend to hold standard classification in the eyes of insurance companies.

Does this mean that only healthy people can afford life insurance? Not necessarily. What it means is that if an individual is thinking about taking out a life insurance policy, they may get better rates if the terms of the policy are set up prior to the onset of medical problems.

Try to think ahead:

1. Most people who have others who depend on them for their financial subsistence should consider taking out a life insurance policy; it will ease the many burdens and expenses that could happen to their loved ones.

2. Elderly couples usually receive less preferential ratings, but should still consider what would happen to their spouse in the event of the death of the principal earner.

3. Employees who have been with a company for a period of several years can often benefit from an employer arrangement or group policy. If this is the case, it may help ease the difficulty for the surviving spouse should an unfortunate incident occur.

Even though there are other reasons to take out a life insurance policy, such as maintaining the proper form for the care of one’s estate or business, the most common reason to take out the policy is for the bereaved ones who have depended on the deceased person’s normal income. It is important to think ahead and not wait until there is a medical crisis or similar event. By that time, it may be too late to get a sufficient policy.