Planning for your future in today's uncertain society seems important, right? People make stock investments, put money in IRA's and 401k's and dream about maybe getting their social security. Yet, for some, it will be their loved ones that need more financial protection. If you have loved ones, and can afford it, life insurance is a necessity to protect them in the instance of your death. Most people do not like to address the idea of their own mortality, but life insurance can protect your family from a lot of unnecessary grief. If you do choose to purchase life insurance, there are some important questions you should ask while researching health insurance:
First, is life insurance coverage really necessary? Think about it. If you have dependents, your life insurance policy could be enough to cover your mortgage, funeral costs, and even an education for your family members. Even single people should look at life insurance if they are responsible for a family members well being. Basically, if there is anyone in your life that would be financially despondent if you were to pass away, then the answer to this question is, "yes."
The second question involves affordability. There are number of different levels of life insurance coverage, but you need to assess your budget to determine what you can afford. Also, some people who are older, suffering from certain health conditions, or have poor health habits incur very high premiums. So, you will need to weigh the cost to you and your family.
Third question to ask yourself is whether or not a life insurance policy is enough to protect your assets. Many people think about enough coverage to pay some bills and for funeral costs. However, many people forget about the tax burden placed on families when a loved one dies. Make sure any policy you choose will also cover these estate expenses.
Fourth, you need to determine how much life insurance you will need. Putting all of your assets together, what money your family might need, and how much income your family members might be able to sustain after you die, you can basically determine how much coverage you should get.
And finally, you need to determine what kind of life insurance you need. There are two kinds, term and permanent, and both have advantages and disadvantages. The basic difference between term life and permanent life insurance is simple. Term life insurance is not permanent. It provides protection for a specific period of time, the 'term.' It was created for temporary circumstances. For instance, if you only need life insurance until your kids graduate from college or until your house is paid off, you could get a term life insurance policy. Term policies are most commonly taken out for 20 years, but there are some alternative policies out there for as little as one year to as much as 30 or more years. These policies offer the most coverage for the least premium.
Whole life insurance is the simplest and most common form of permanent life insurance. This policy offers you lifelong protection and allows you to accumulate money on a tax-deferred basis. Also, because you have that access to money through your policy, it gives you flexibility if you need to stop paying your premiums for a period of time. The premiums remain pretty stable over your lifetime, as they do not increase with age, and you are guaranteed the coverage, even if your health deteriorates. There are even some tax advantages to having whole life insurance.
Decide what you really need. If you need more money now and want lower premiums, then term life may be better for you. However, if you want an investment and guaranteed coverage, then whole life insurance may be what you should get. The decision is up to you to decide between Term Life and Whole Life insurance. If you are still confused and want more details, then talk to your insurance agent about choosing between term life and whole life insurance policies.
Overall, the choice to get life insurance is yours. If you have loved ones who may require financial assistance if you should pass away, then life insurance coverage should be an important part of your financial planning. Get a free life insurance quote to determain the best agents in your area. There is absolutely no obligation.