Life Insurance and Dental Insurance - Necessity and Facts
1. What life Insurance is
Basically, a life insurance policy, is an agreement between the insurance company, the insured person, and the beneficiary. The insured, pays a certain pre-defined amount to the insurance company. And in the case of death of the insured, the company pays the benefit to the beneficiary.
2. Types Of Insurance
There are two basic types of Life Insurance. They are term life insurance, and permanent life insurance. Term life, as the name suggests, is a temporary agreement, for a pre-defined number of years, after which, the agreement expires. Various lengths of term life can be purchased, however, the most common ones are between 10 and 20 years. However, terms as long as 30 years, or as short as 1 year are also available. In the case of Permanent Life, the policy covers the insured till the date of their death, or till the time the agreement 'matures', which in most cases, is at age 100. There are different types of Permanent Insurance, which include whole life, universal life, etc. There are many different reasons for choosing either of these, so professional advice is always recommended.
3. How much will you get?
In most cases, the amount you get, is dependent on the reason you purchase it. And this, in most cases, is to replace the income in the case of death. While most professionals would recommend 10-12 times your annual income, this can vary, and approximately should be good enough to provide for at least 20 years of safe income. However, inflation, final expenses, etc are not considered in this, so, you should always let a professional do the calculation before you decide any amount.
4. Benefits of life insurance
Although, the benefits of life insurance differ from policy to policy, most of the policies have some of the benefits in common. The most effective benefit, is that the death benefit is, in most cases, excluded from any income tax deductions. Thus, a 500,000 dollar policy will transfer the whole 500,000 dollars to the beneficiary, with no deductions whatsoever. This, is also effective for passing wealth from one generation to another.
Dental Insurance
Some people don't take dental insurance as a reason for not going to the dentist. Others think that it is not a good reason for the dent it makes on their wallet every month. Few are content with their teeth and think it nonsensical to spend money every month on something that is perfectly alright right now. These are few of the reasons why people avoid dental insurance or not think of it until the last minute when getting health insurance. But you have to understand this one thing-dental insurance is very important due to the various benefits it has to offer.
Dentistry is one field where even the simple procedure of tooth extraction can cost as much as few hundreds of dollars PER TOOTH!!!Therefore, people relate dental processes or work with huge never-ending bills. But what they don't think of is that the small dent that dental insurance will make on their wallets every month is nothing as compared to the huge dent it will make getting a root canal implant or even getting your wisdom teeth removed on your wallet. Moreover, it also helps you in the finance department. What'll you do if you have to immediately get a tooth removed or are in need of a dental implant? If you have dental insurance in this situation it'll help cover up at least part of it, if not the entire cost.
Many people make do with the thought that dental care ends at flossing and brushing well. But actually, this is not true. It is not a very well known fact but is proven that dental diseases have a direct link with other diseases. Dental diseases are common to humans, even young, healthy adults and they can easily affect the rest of the body in various ways. For example, some dental diseases are known to lead to other non-dental yet very serious health problems rather diseases like diabetes and even kidney infections.
Therefore, in this case dental insurance is very helpful as it even covers costs of regular dental checkups, that help check the growth of diseases, if any identified. This step of uncovering diseases and preventing them from becoming bad to worse is very important. Dental insurance encourages care keeping in mind the prevention of dental diseases, which further leads to decrease in final costs involved in dental care and prevention of diseases.
While you are considering health insurance, you should keep dental insurance in mind as it is an integral part. Few of the benefits of dental insurance have been given above. It is advised you should get dental insurance. Even though it seems like a gimmick for getting your money but in reality it is for your own good.