| By Jason Cunningham Nov 23, 2009 - 7:53:58 PM | |
At present, many people are trying to save more money. However, after they reduce their grocery bills and their expensive Friday nights on the town, what else can they eliminate from their budgets? Unfortunately, some people believe it is great time to drop their individual life insurance policies.
Why Did You Buy the Life Insurance Policy?
Usually, people buy life insurance for the death benefit. These individuals want to protect their families from burial costs and the lost of future income. Additionally, depending on the face amount of the policies, spousal beneficiaries have been known to pay off their mortgages and pay for their children’s educational expenses with life insurance proceeds.
Ideally, life insurance is not bought to replace a loved one but to provide financial assistance to loved ones left behind with present, past and future liabilities. In tough economic times, people often forget the reasons why they bought the life insurance. Therefore, some individuals are inclined to lapse or cancel their life insurance policies because they need the money to pay other expenses.
Insurability Concerns and Life Insurance
No one ever plans to become uninsurable for life insurance. However, we all know that it can happen. Unknowingly, a person may have a terminal illness. In some cases, a routine visit to the doctor’s office may lead to an individual being admitted to the hospital. A cancer or renal disease diagnosis can render an individual uninsurable for many standard insurance policies.
What Should You Do about Your Life Insurance Policy?
Before you decide to surrender or lapse your life insurance policy, talk to your loved ones and your financial planner. Your financial planner may be able to find saving opportunities to help you to pay for your life insurance policy, in spite of these bad economic times. Remember, there is no guarantee that you will be insurable for a standard life insurance policy tomorrow.
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