Life insurance is something that most people don't want to think
about. After all you'll never get the benefit of the policy yourself.
However, it does give you peace of mind to know that your family will be
able to go on without you. The first thing you need to know about life
insurance is whether you actually need it or not. The way to determine
that is two-fold: what would happen if you weren't around? What can you
afford?
As the primary income source in the household, if you die, your family has lost that income. The whole purpose of life insurance coverage is to protect the family. The primary caregiver in a family with children needs to have life insurance even if she/he doesn't work. Someone will have to look after the kids until they reach school age. Even then there is before and after school care, housecleaning and household chores that must be done.
Life insurance is either whole life or term. Whole life has a savings component. You have the insurance which is paid upon the death of the insured. However, the policy also has a cash value that builds over time. Term insurance pays only upon death, there is no value to the policy.
Whole life is more expensive than term in the beginning. As you grow older the whole life premium stays the same other than inflation or across the board increases which affect each policy holder the same. Term life is based on your age. The older you are the more it costs because the risk of death is higher. The premiums increase as you age.
Buy only as much policy as you need and can afford. You might want and feel the need for a $1,000,000 policy. Your budget might only be able to afford $250,000.
Whether you qualify for life insurance and the premiums are based on your age and health.
One of the things you really have to look for is the reliability of the company offering the policy. Are they financially stable? Will the company have the cash to pay if you cash in your whole life policy?
Read the fine print of the policy. Don't be fooled by claims such as pays three times the amount of the policy if death is accidental. The small print may restrict the definition of accidental so narrowly, only very few deaths would qualify as accidental.
As the primary income source in the household, if you die, your family has lost that income. The whole purpose of life insurance coverage is to protect the family. The primary caregiver in a family with children needs to have life insurance even if she/he doesn't work. Someone will have to look after the kids until they reach school age. Even then there is before and after school care, housecleaning and household chores that must be done.
Life insurance is either whole life or term. Whole life has a savings component. You have the insurance which is paid upon the death of the insured. However, the policy also has a cash value that builds over time. Term insurance pays only upon death, there is no value to the policy.
Whole life is more expensive than term in the beginning. As you grow older the whole life premium stays the same other than inflation or across the board increases which affect each policy holder the same. Term life is based on your age. The older you are the more it costs because the risk of death is higher. The premiums increase as you age.
Buy only as much policy as you need and can afford. You might want and feel the need for a $1,000,000 policy. Your budget might only be able to afford $250,000.
Whether you qualify for life insurance and the premiums are based on your age and health.
One of the things you really have to look for is the reliability of the company offering the policy. Are they financially stable? Will the company have the cash to pay if you cash in your whole life policy?
Read the fine print of the policy. Don't be fooled by claims such as pays three times the amount of the policy if death is accidental. The small print may restrict the definition of accidental so narrowly, only very few deaths would qualify as accidental.
Dee Power is the author of several nonfiction books including her
latest "The Pocket Small Business Owners Guide to Business Plans." She
lives with her two dogs, Rose the Irish Setter and Kate the English
Springer Spaniel. Find why do you need insurance and receive Free home insurance quotes.
the death of the insured. However, the policy also has a cash value that builds over time. Term insurance pays only upon death, there is no value to the policy. life insurance rates for seniors