Life Insurance


How Much Life Insurance Should You Really Have
Deciding how much life insurance you really need can be confusing no matter what age you are. Simple calculators can complicate the decision by telling you that you only need eight times your annual income. Other online tools will tell you that everyone should take out a policy totaling at least a million dollars. The truth of the matter is this – life insurance is a very personal decision, and the decision shouldn’t be made lightly. Here are considerations to take when deciding just how much life insurance you really need: Final Expenses Funeral and burial expenses can vary by state, location, funeral home and cemetery. On average, final expenses today cost $15,000. If you live a full life, you can expect this cost to be much higher by the time of your passing. The proceeds from your insurance policy are tax-free and will often be delivered more quickly than if your loved ones had to wait for money from your estate. Debts Total the balance of your mortgage, vehicle loans, student loans and other debt that you are currently carrying. For instance, if the balance of your mortgage is $70,000, you owe $25,000 in auto loans, $50,000 in student loans and have a personal loan with a $10,000 balance; your total would be $155,000. College Tuition If you have children, you’ll want to ensure that they are able to attend college. College tuition rises at a rate of about five percent per year. Take a look at the current costs of any colleges that you are interested in sending your children to. Decide if you want to foot the bill for four years of college or are only going to foot the bill for a portion of the costs and come up with a total. If the state university is currently charging $15,000 per year for tuition and room and board, you would need $60,000 to send one child off to college this year. Replacing Your Income Because you have already covered the cost of your final expenses, debts and the kids’ education, you only need to include about 50 percent of the income that you would earn until retirement. For example, if you earn $40,000 a year, divide that number by 0.05, and it totals out to $800,000. Using these examples, you would need coverage in the amount of $1,300,000. Use this number as a starting point only. Depending on your family’s situation, you may need more or less coverage. If you have no pension through your employer, you may want to take more coverage. If you have a $40,000 life insurance policy through your company, you may want to consider less coverage. You can also take less coverage if your spouse makes a substantial salary or if you have a significant savings account. Life insurance is a very personal consideration, and it is a consideration that should not be taken lightly. Our thoughts rarely turn to death when we are young and healthy. Accidents and sudden, unexpected illnesses do occur, and the eventuality of your death must be discussed. It’s important that your family not suffer needlessly after your passing. Purchase a life insurance policy with the proper amount of coverage to ensure that your family is taken care of after you are gone.

How Much Life Insurance Should You Really Have?


For any human being a policy on life insurance is must or at least very necessary. Ignorance on the importance of life insurance is a blunder. There are endless topics that tackle life insurance policies. They say, save money now to earn after death. However, this is a wrong conception of people. The money spent on life insurance is worth spending as it can secure your family from any sudden financial loss. People do realize this later in their age. Anyway, if you’re optimistic, insure yourself with a good and beneficial policy. There are plenty of such policies in the market. You need to choose a policy that suits you best and is affordable for you. Search for a few policies and go through the terms and benefits of them. Settle on one and find peace of mind for your family. Some life insurance policies provide benefits for a considerable long periods making you comfortable in paying the premium amount at your convenience. Ensure that your policy secures you and your loved ones. This is the worst effect of not having any life insurance policy. To avoid this situation and to better your life style, get a life insurance policy that you think would be the best for you. However, there are negativism concerning life insurance policies, that the critics often target.  Most cases involve intentional death of the policy holder in order to obtain money of the insured person. At time the insurance company go bankrupt which leaves the policyholder in distress. Following are a few tips that can save you from a certain unwanted situations: Do make research on the advantages and disadvantages of the life insurance policies available. This would  help you arrive at a decision more securely. You will be able to choose according to your need concerning your safety and security. Ask your friends, colleagues or the people in your circle to have required knowledge in this field. You can also make online search which alone has a vast storage of knowledge in every field. Settle with the one life insurance policy you are most satisfied with. This prevents you from  the feeling of insecurity that arises from the lack of proper knowledge. Once you are aware of its pros and cons, you can guess what can happen and what not. Do visit the  insurance company to know the facts more clearly. Try to know how far it is successful in providing its services. Get in touch with a registered life insurance agent. The agent can help you in this regard. Ask him/her to explain the terms & conditions as well as the benefits of such policies. Also, make sure the payout of the policy after maturity is smooth. Before signing and agreeing to the terms and conditions of your life insurance policy, go through the guidelines of it, read it very carefully. This part is often neglected by the policy holders. The insurance company may change the guidelines and can make provisions to their advantages. Therefore, it is advisable to read the guidelines carefully before signing anywhere in the policy papers. Be conscious and little aware, then you are all safe and secure. Keep in mind that life insurance policy unlike any other insurance policy is an investment as well it secures your family in case of your death. So, choose the best one which gives you the best of returns.

Life Insurance Policy : Shoule You Have a Life Insurance ...