The Pros and Cons of Life Insurance

Life Insurance

What You Need to Know About Life Insurance

If you’re unfamiliar with life insurance policies and how they work, you’re in the right place to learn more about them. Essentially, a life insurance policy is a policy you can purchase that will pay money to your family in the event of your passing. It’s important to note that each life insurance policy is different and can be crafted to fit the needs of a single individual. This policy is a legal agreement between an insurance company and a person. Most life insurance policies indicate the insurer, the policyholder, who the policy insures, the death benefit, and beneficiaries of the death benefit.

The Disadvantages of Life Insurance

While there are many upsides to purchasing life insurance, the option may not be as perfect as most might think. Let’s explore the major disadvantages to help you understand their significance.

  1. Life insurance can be expensive depending on your age or if you are unhealthy.
    Premiums on life insurance policies are determined by one’s medical profile, family medical history, and finally, age. You can be charged more for coverage based on these factors.
  2. Whole life insurance is expensive no matter what age it’s purchased at
    Term life insurance is pricey, but to cover a whole life with a life insurance policy is much more expensive, possibly hundreds of dollars a month. It lasts your whole life but requires a great investment.
  3. You can be easily misled if you’re not properly informed
    When can you redeem cash value? Do companies charge more or less based on the same risk factors? There are important factors and facets of your policy that should be covered in their entirety before you sign for it.

The Advantages of Purchasing Life Insurance

Purchasing life insurance can benefit an individual and their family greatly if approached right. The team at Fabian Ramirez Insurance Agency is here to help!

Protect your family financially

Life insurance is the exchange of a small monthly payment for a very large amount of money if you die, otherwise known as a death benefit. 

Expensive but cheap enough to fit within your budget

The earlier you purchase life insurance, the better! You could pay as little as $20 a month in life insurance premiums, but depending on your coverage amounts, they could be more. It all depends on what you want, as well as who needs coverage.

Peace of mind

We believe you can’t put a price on financial security for your family in the event of your passing. Life is unpredictable, and it’s better to have a policy you don’t need than to need it and not have it.


If you are curious to learn more about life insurance, specific policies that would be available to you, and need help with setting a budget to ensure you receive full coverage, contact us today to learn more. We are here to help you and your family!