• Finance

These are the three most common questions we get about life insurance

If you have dependents, ask yourself: who would cover their housing, education, health, and other expenses if you passed away? Yes, that escalated quickly. Because the truth is, if you have insured anything, but not your life (like your phone), your safety net fits one only.

Whatever is holding you back, from a “la la not listening!” approach to mortality to confusion about what life insurance is or how to go about it, we have you covered. Here's what you need to know.

Do I really need life insurance?

As with every type of insurance coverage, the answer depends on your worst-case scenario. If anyone else besides your relies on your income, then yes, protecting them is a sound investment.

What’s the difference between term and permanent life insurance?

There are two kinds of life insurance — term and permanent. Which you go for will determine the period of coverage and the amount your beneficiaries will receive. At Freelancers Union, we provide flexible, easy-to-use term life insurance plans that are designed for freelancers and leverage the power of our group. Check them out here.

You choose a period of time, say 20 years, and pay premiums for the duration. Your dependents are only eligible to receive death benefit during that time, and as long as you are paying the premiums.

The idea behind term life is that you won’t need insurance after the conclusion of the policy, as your dependents will be grown and able to provide for themselves. As such, term life insurance plans like ours offer flexible levels of support — as much as you need, for as long as you choose.

As the name suggests, permanent life insurance policies have no end date — they are for life. They are much more complex and expensive, with steady but high premiums, as companies expect to pay a benefit at some point.

Permanent is a good option for those with a high net worth who want to leave behind a lot of cash. And because they accumulate cash value, these policies can be borrowed against. If permanent life insurance seems like a good option for you, talk to a financial advisor.

Isn’t this a depressing subject?

No! If the worst should happen to you, those you love are protected. And if not? There’s no downside to outliving your life insurance policy.

Peace of mind is always better than hoping — and that’s where term life insurance comes in.