If you do not have a family or aging parents depending on you for support, if you live alone, or if you have substantial assets or savings that will enable your dependents to maintain their lifestyle even when you're gone, you may not need the life insurance coverage. However, if you have people who depend on your income, some debts and a few assets and savings, it is a good idea to prepare for the unexpected and undesired eventuality of your sudden demise.
Find out how much insurance you need.
How much does your family need in order to replace your income during the times that they will need your support?
Here are some questions you need to ask to help you determine this:
* How much do you contribute to the household income annually?
* How much outstanding debt do you have? Do you have credit card debts? Do you have a mortgage?
* What additional expenses will there be if there is only one spouse to take care of the kids? Will your spouse have to hire someone for childcare or elderly care?
* Are you planning on sending your children to college? How much will they need by then?
* How long will your children be dependent on you? How old are they?
One other way to get the approximate amount of coverage you need would be to multiply your annual salary by 10 or 12. And then add in any major debts.
When determining the level of insurance you need, remember that too much is better than too little. Also, there is inflation to think about. The amount that may be sufficient today may not be enough some 10 or 20 years down the line.
Select the type of policy you want.
Term life insurance is cheaper but only temporary. Permanent life insurance is more expensive but has cash values. It really depends on how much you can afford to put aside.
Your three basic choices will be:
1. Term life insurance. This will provide high levels of protection at an affordable cost. However, as you age or if there are changes to your health condition, the premiums may rise. Also, if it is not guaranteed renewable, there is the possibility that the insurance company may deny your application. But you may consider that by the time you reach the age of 65, your children may have already established their careers and are not dependent on you anymore. You may choose between an increasing term, decreasing term or level term insurance.
2. Whole life insurance. This permanent life policy provides you with insurance cover for the rest of your life. This long term protection plan is a good way to provide money for inheritance tax if one has built a considerable estate. The cash value of the policy can work as savings the insured can withdraw or take a loan against.
3. Endowment life insurance. This permanent life policy provides cover for a specific number of years and then when the policy has matured, you will receive the face amount of the policy. That means if die during the coverage period, your beneficiaries will receive the death benefit plus any cash values. If you survive the coverage period, you may use the endowment for your retirement or to fund your child's education.
4. Shop around. Life insurance rate comparison takes time, you can also miss the best deal. You can fill in our simple no obligation form on the right and we'll compare the market for you fast and easy.
Find out how much insurance you need.
How much does your family need in order to replace your income during the times that they will need your support?
Here are some questions you need to ask to help you determine this:
* How much do you contribute to the household income annually?
* How much outstanding debt do you have? Do you have credit card debts? Do you have a mortgage?
* What additional expenses will there be if there is only one spouse to take care of the kids? Will your spouse have to hire someone for childcare or elderly care?
* Are you planning on sending your children to college? How much will they need by then?
* How long will your children be dependent on you? How old are they?
One other way to get the approximate amount of coverage you need would be to multiply your annual salary by 10 or 12. And then add in any major debts.
When determining the level of insurance you need, remember that too much is better than too little. Also, there is inflation to think about. The amount that may be sufficient today may not be enough some 10 or 20 years down the line.
Select the type of policy you want.
Term life insurance is cheaper but only temporary. Permanent life insurance is more expensive but has cash values. It really depends on how much you can afford to put aside.
Your three basic choices will be:
1. Term life insurance. This will provide high levels of protection at an affordable cost. However, as you age or if there are changes to your health condition, the premiums may rise. Also, if it is not guaranteed renewable, there is the possibility that the insurance company may deny your application. But you may consider that by the time you reach the age of 65, your children may have already established their careers and are not dependent on you anymore. You may choose between an increasing term, decreasing term or level term insurance.
2. Whole life insurance. This permanent life policy provides you with insurance cover for the rest of your life. This long term protection plan is a good way to provide money for inheritance tax if one has built a considerable estate. The cash value of the policy can work as savings the insured can withdraw or take a loan against.
3. Endowment life insurance. This permanent life policy provides cover for a specific number of years and then when the policy has matured, you will receive the face amount of the policy. That means if die during the coverage period, your beneficiaries will receive the death benefit plus any cash values. If you survive the coverage period, you may use the endowment for your retirement or to fund your child's education.
4. Shop around. Life insurance rate comparison takes time, you can also miss the best deal. You can fill in our simple no obligation form on the right and we'll compare the market for you fast and easy.
1 komentar:
Purchasing a life insurance policy is easier than ever with online life insurance quote providers. Look for BBB-accredited sites that offer free life insurance quotes from reputed life insurance carriers. Receiving multiple quotes will help you get the most affordable term life insurance!
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