In an age where there is insurance available for almost everything, it can be overwhelming to pick and choose what types of insurance we actually need. After spending what feels like endless amounts of time and money on an insurance plan that isn’t often used, it’s not surprising that having insurance can feel like a waste of resources.

But contrary to what may seem true, the most convenient time to think about insurance is actually when you are at your healthiest. That way, if something dire does come up, you are protected and can delegate more of your time to focus on a healthier you, and less time stressing about insurance plans.

Before stressing too much, it’s important to understand the differences between life insurance and health insurance.

Understanding Life Insurance

Life insurance is typically available in two categories: term insurance and permanent insurance.

Aptly named, term life insurance is life insurance that is bought for a specific period of time. According to Forbes, term insurance is most commonly bought for a 20-year time frame. This is because many families plan for term insurance until their children or out of college and because living expenses usually decrease as humans get older.

                                                  Photo by fatbird2333 on Unsplash

Permanent life insurance, on the other hand, can be acquired for lifetime duration. Oftentimes, permanent life insurance plans have a guaranteed rate of return, meaning the monetary value of the entire policy will earn a small amount of interest. In contrast to term insurance, permanent insurance usually offers a fixed monthly premium and a fixed death benefit.

The surprising fact about life insurance is that sometimes it’s in the better interest of the insured party’s dependents, rather than the insured. According to Investopedia, life insurance can provide an extra layer of protection to our dependents after we die.

Parting With Life Insurance

While this is all helpful in theory, sometimes life throws a curveball and it may be in our best interest to sell a life insurance policy. The process of selling a life insurance policy is called a viatical settlement.

Viatical settlements are intended for people who are coping with a terminal illness. While it may seem appealing to sell insurance sooner and reap the benefits, the process works best for people in irreversibly dire circumstances.

                                                     Photo by freestocks on Unsplash

Especially in the event of a diagnosis such as cancer, a healing individual may prefer to use the cash of their life insurance policy to pay for treatments, travel, or to be able to focus more on spending time with their loved ones. Time can be the most precious resource during sickness and companies like the American Life Fund make reaching a viatical settlement easy. According to, reaching a viatical settlement can help patients obtain the financial benefits of their life insurance quickly and confidentially.

Planning for the Short Term

In contrast to the commitments of life insurance, some people choose to opt for a month to month health insurance. These short term plans can be a fit for people who freelance or are self-employed, those who need temporary health insurance between jobs, or for those who want to travel. Signing with a short term insurance plan can be smart for college students or anyone whose lifestyle feels less rooted in permanence.

                                                                  Photo by baim on Unsplash

In short, finding the right health insurance can be a mind-boggling process. But thankfully, in a world of options, there is a fit for many different lifestyles and personal trajectories. From the least permanent plans to the most permanent, having some kind of safety can help us live life in good conscience.


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