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Life Insurance Artitcles
Life Insurance And Marriage: What To Do When You Say "I Do."
Life insurance is probably the last thing newlyweds think about when they start their new life together. However, marriage is considered one of the big events in your financial life. Whether you already have life insurance or not, here are some...Read More
Life Insurance Guide-Ensure your Life
Life insurance is a type of insurance that pays a sum of money to the beneficiary of the insured person only if the premiums of insured are in progress. It works like all other insurance policies. In life insurance insured person ensures his life...Read More
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More than just Life Insurances Insurance, as we all know is a form of risk management primarily used to hedge against the risk of potential financial loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one...Read More
The Tough Task Of Being A Life Insurance Agent
Life insurance agents have a very challenging occupation. To be a life insurance agent, you must be able to combine the gentle and responsive nature of a friend with the cold and almost ruthless salesmanship of a hardened professional. The...Read More
Viatical Life Insurance Settlements
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| Life Insurance Basics: Getting Started
Let's be honest. The topic of life insurance isn't exciting or glamorous, but it is important. In fact, many experts consider life insurance to be the cornerstone of good financial planning. But how do you know if you need life insurance? How much is enough? What kind of life insurance policy is best for you? Answering these basic questions about life insurance will help to simplify the shopping process and ultimately allow you to select the best policy to secure your family's future for years to come. Establishing Your Needs To clear up any misconceptions, life insurance is designed to protect your loved ones from financial loss in the event of your death. Knowing this, it's important to establish whether you need life insurance and how much you should purchase. According to MetLife you generally need life insurance if:
- You have a spouse
- You have dependent children
- Relatives or elderly parents depend on your income
- Your retirement funds are not enough to provide for your spouse's future
- You own a business
- You have a large estate
The beneficiaries of your life insurance policy can use the proceeds from your life insurance to:
- Pay for last expenses and funeral costs
- Cover estate taxes (if applicable)
- Pay off existing debts (mortgage, car loan, credit card debt)
- Pay for everyday expenses (food, clothing, childcare)
- Put towards your spouse's retirement fund
- Donate to charity
If you don't have dependents, you may still wish to purchase a life insurance policy to avoid becoming a financial burden to your loved ones in the untimely event of your death. Young singles also benefit from purchasing life insurance while they're young and healthy, allowing them to secure a low premium for years to come.
Choosing a Dollar Amount Figuring out how much life insurance your loved ones would need to maintain their quality of living can be tough. Generally speaking, experts recommend purchasing between 5 and 10 times your annual salary. But, as MetLife points out, your exact need for life insurance will depend on your personal and financial circumstances. You can get a ballpark estimate of your life insurance needs by first totaling the funds your family would need for the abovementioned items (funeral costs, daily living, etc.). You can find helpful worksheets online that will help you organize and come up with this list of expenses. After you've totaled your expenses, take stock of the funds you have in cash, savings, retirement accounts, bonds, property, pension and Social Security. Subtracting your financial resources from your expenses will give you a rough idea of how much life insurance you should purchase. When it comes to choosing how much life insurance to purchase, it's a good idea to get an idea of your needs before buying a policy-but your licensed life insurance professional will undoubtedly help you choose a dollar amount that accurately reflects the needs of your beneficiaries. Selecting a Policy Generally speaking, there are two types of life insurance: term life insurance and permanent life insurance. The type of policy you select will depend largely on your life insurance needs and what resources you have to pay life insurance premiums. Term Life Insurance
Term life insurance, as the name suggests, will cover you for a specified amount of time, which means the insurer will only pay out a death benefit if you die during the term of your policy. According to the Insurance Information Institute (I.I.I.), most people purchase a 20-year term policy, although smaller terms are available. Of course, you can renew your term life policy after it expires, although your premiums may increase as you age. But all in all, because of the "temporary" nature of term life insurance, policies are generally much cheaper and are therefore an attractive option for young people and families with a limited income. Permanent Life Insurance
On the other hand, permanent life insurance, as you might have guessed, is permanent. A permanent life policy will pay out a death benefit whether you die tomorrow or in 60 years. Permanent life insurance is also an appealing option for many because of the added benefit of the policy growing on a tax-deferred basis, which can grow to be fairly large over time. As a policyholder, you may be able to borrow against this cash value while alive, which has been of great help to some. Of course, most loans need to be paid back otherwise they will be subtracted from the death benefit, and your beneficiaries may have to liquidate assets to pay back the loan. Nonetheless, permanent life insurance offers a wide variety of saving and investment options. Because of this, policies are generally more expensive than term policies, which may be hard for young adults to handle. Your life insurance professional will help you decide which type of policy is best for your life insurance needs-and your budget. But researching these policy types beforehand can help you narrow down which policies appeal to you. Knowledge is Power No, learning about life insurance and planning for the unexpected isn't glamorous, but it is important. So take advantage of consumer resources and talk to a life insurance professional about purchasing affordable life insurance. You'll rest easier at night knowing your loved ones are taken care of for years to come! About InsureMe Megan L. Mahan is a copywriter and insurance information expert with InsureMe in Englewood, Colorado. InsureMe links agents nationwide with consumers shopping for insurance. Specializing in auto, home, health, long-term care and life insurance quotes, the InsureMe network provides thousands of agents with insurance leads every year. For more information, visit InsureMe.com.
Written by: Megan Mahan
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Buying Term Life Insurance on the Internet
In the last few years the growth of term life insurance sales via the Internet has exploded and created many new on line life insurance agencies. In the past consumers were skeptical about buying any products or services on the world wide web,...Read More
Cheap Life Insurance Policy
A Guide To What to Expect From Your Life Insurance Policy The average life insurance policy isn’t hard to understand – you take out this kind of policy to basically get life insurance cover to protect your family. So, if you die unexpectedly, the...Read More
How To Reduce Your Life Insurance Premiums Without Switching Insurers
Change how you pay the premiums and your life insurance could be even cheaper without the hassle of switching to a new insurer. Many policyholders pay their premiums monthly but most life insurance companies give customers who pay their premiums...Read More
Low Cost Life Insurance
Finding low cost life insurance need not be a complex process. The life insurance market in the UK is extremely cost competitive, with a glut of cost orientated life insurance companies keeping the cost of life insurance at record low levels....Read More
Term Life Insurance Policies
Term life insurance policies offer the most affordable option for life insurance coverage when operating under budget constraints. Millions of people have opted for this choice and insurance providers have come up with a multitude of options for...Read More
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Cheapest UK Life Insurance
Most companies will claim that they’re the one with the cheapest UK life insurance rates. While this claim may or may not be true, one thing is certain. Selling life insurance is extremely competitive. Thousands of companies and independent sales...Read More
Helpful Tips For Buying Term Life Insurance Online
Term life insurance is very simple, and can easily be purchased online. For this reason the number of people buying term life insurance online has doubled in two years. There are some advantages and disadvantages to buying term life insurance...Read More
Term Verses Whole Life – When it Comes to Life Insurance it Pays
There has been an age old battle between the virtues of term life insurance verses whole life insurance. The proponents of term life insurance often lead with the argument that it would be better to buy term insurance and invest the difference. The...Read More
The Life Insurance Policy and What You Need to Know Before You Buy
Are you looking to buy a life insurance policy? Well, be careful. Life insurance can be difficult to understand and it's easy to be conned into buying something under false pretenses. Recently a prominent life insurance company together with...Read More
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Life Insurance Artitcles
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