The most important reason people buy life insurance is to make sure that their loved ones are covered from catastrophic expenses in the event of their death. Some of us also use whole life insurance to finance major life goals, such as university, marriage, or retirement. Whole life also can be used to finance unexpected needs when credit may be short. Taking a long, hard look at financial goals to determine the exact reasons you need life insurance coverage will help you make the most of your life insurance policy. Most of us want to leave our loved ones a death benefit, especially if they depend on us for their living expenses. But we also want to make sure they are covered in case of devastating illness or accidents. And if you want more income for your retirement, too, consider the amount of whole life insurance you need to make your retirement plans.
Once you decide why you want to purchase life insurance, you need to determine what type of policy best meets your needs. Knowing what you want life insurance to do for you allows you to get the most out of your life insurance policy, maximizing the policy?s benefits for both you and your family.
There are two major types of life insurance policies. Term policies, as their name suggests, cover a set term, usually a set number of years. These policies are less expensive, but they do not accumulate cash value and they only provide a death benefit. This cash, of course, can be accessed to cover funeral expenses. Many people combine term coverage with whole life, and a qualified insurance agent can help you determine the best mix for your needs.
Once you figure out what you want out of life insurance, you also want to make sure you can afford the coverage. Purchasing life insurance, regardless of what type, will require you to pay a premium. Term life insurance tends to be cheaper than the permanent, whole life insurance policies. Again, you want to make sure that the policy also meets your specific needs, but you also want to make sure the premiums fit your monthly budget. Have an idea in mind of what you can afford before you start looking at policy specifics.
Be realistic about your needs for coverage. Make sure you replace your actual earning power. If you are buying whole life, look hard at your retirement goals. Don't forget that funerals can be expensive, and they are only going to get more expensive. Make sure your family is covered for all those costs.
Think about where you are in your life and what you still want to accomplish. After you have all those ideas mapped out, then you will be able to decide which policy is right for you. Ask questions of a licensed insurance agent. He or she can help you find the policy that is best for and make sure your loved ones are protected. - 33372
Once you decide why you want to purchase life insurance, you need to determine what type of policy best meets your needs. Knowing what you want life insurance to do for you allows you to get the most out of your life insurance policy, maximizing the policy?s benefits for both you and your family.
There are two major types of life insurance policies. Term policies, as their name suggests, cover a set term, usually a set number of years. These policies are less expensive, but they do not accumulate cash value and they only provide a death benefit. This cash, of course, can be accessed to cover funeral expenses. Many people combine term coverage with whole life, and a qualified insurance agent can help you determine the best mix for your needs.
Once you figure out what you want out of life insurance, you also want to make sure you can afford the coverage. Purchasing life insurance, regardless of what type, will require you to pay a premium. Term life insurance tends to be cheaper than the permanent, whole life insurance policies. Again, you want to make sure that the policy also meets your specific needs, but you also want to make sure the premiums fit your monthly budget. Have an idea in mind of what you can afford before you start looking at policy specifics.
Be realistic about your needs for coverage. Make sure you replace your actual earning power. If you are buying whole life, look hard at your retirement goals. Don't forget that funerals can be expensive, and they are only going to get more expensive. Make sure your family is covered for all those costs.
Think about where you are in your life and what you still want to accomplish. After you have all those ideas mapped out, then you will be able to decide which policy is right for you. Ask questions of a licensed insurance agent. He or she can help you find the policy that is best for and make sure your loved ones are protected. - 33372
About the Author:
Tom Martens is the content syndication coordinator at Lifeinsurance-Southafrica.co.za South Arica?s leading Life Insurance and Life Cover portal.
