Life Insurance Tips

The first step to financial security is kind of also the last step: life insurance. Will your family be taken care of after you die? Will you leave your spouse or kids with debt, or will you leave them with the means to take care of your debt, and maybe some of their own debt? It’s scary to buy life insurance. First of all, the different options available can be overwhelming. Plus, you have to think about dying, which is never pleasant. It’s important that you navigate the options carefully to find cheap life insurance that’s right for you. Below are some tips to help. How Much Coverage? Many experts say your life insurance should pay our about seven times your annual salary. According to this figure, if you make $50,000 a year, your life insurance policy should pay out $350,000. Of course, this is just a blanket guess. How much you need depends on your situation. Is this enough to pay off your house and the rest of your debt? Is this too much? Does the cost of this fit into your budget? The best way to determine what life insurance coverage you need is to have open and honest communication with your loved ones and with a financial advisor. When you die, what should your life insurance help with? Finding the Right Type All life insurance is not the same. The two main types are whole life insurance and term life insurance. Other types include variable and universal, though these are less common. Term life insurance covers you for a certain period of time. You can outlive your policy, which sounds strange, I know. If cheap life insurance is what you’re looking for, then term life insurance is what you should choose; it’s much cheaper. The other common option is whole life insurance. This covers you until you die. When you die, your beneficiary gets the death benefit. It never expires before you pass. When term life insurance expires, you either purchase a new policy, or nobody will receive a death benefit. Shop Around Like with any big purchase, it’s important to shop around. For some reason, many people don’t do this for life insurance, because people tend to think all life insurance providers are the same. Of course, this isn’t true. A life insurance policy is only as good as the company that provides it. That company has to last longer than you do, to be blunt. This life insurance website will help you evaluate life insurance companies. Look at overall ratings and read customer reviews. Also think about company longevity. These three tips are a good start to helping you find the right life insurance policy for you and your family. They are also the first big step towards financial security.
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How to make your life insurance work for you Seniors can put their life insurance policies to work for them, selling the policies rather than surrendering them to the insurer to generate needed income. The ways to sell a policy have different names and work in slightly different manners, too. The Minnesota Department of Commerce, which regulates the insurance industry, says seniors should research their options before entering into one of these arrangements. Department spokesperson Libby Caulum offered the following information: •IN A “VIATICAL SETTLEMENT,” A POLICYHOLDER WHO IS CHRONICALLY OR TERMINALLY ILL RECEIVES IMMEDIATE CASH – less than the full amount of the death benefit –in exchange for the sale and transfer of policy ownership rights. The individual or company that buys the policy pays the premiums and collects the full amount of the death benefit from the insurance company. •Many insurance companies are making “accelerated death benefits” available to policyholders. The company pays the benefits as a percentage of the policy’s face value, minus any outstanding policy loans. These benefits may make the policyholder ineligible for Medicaid or other government benefits, and may be taxable. Caulum suggested consulting with a legal or financial advisor before entering one of these agreements. Compliments of: StarTribune.com
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Life insurance

Life Insurance Tips

The first step to financial security is kind of also the last step: life insurance. Will your family be taken care of after you die? Will you leave your spouse or kids with debt, or will you leave them with the means to take care of your debt, and maybe some of their own debt? It’s scary to buy life insurance. First of all, the different options available can be overwhelming. Plus, you have to think about dying, which is never pleasant. It’s important that you navigate the options carefully to find cheap life insurance that’s right for you. Below are some tips to help. How Much Coverage? Many experts say your life insurance should pay our about seven times your annual salary. According to this figure, if you make $50,000 a year, your life insurance policy should pay out $350,000. Of course, this is just a blanket guess. How much you need depends on your situation. Is this enough to pay off your house and the rest of your debt? Is this too much? Does the cost of this fit into your budget? The best way to determine what life insurance coverage you need is to have open and honest communication with your loved ones and with a financial advisor. When you die, what should your life insurance help with? Finding the Right Type All life insurance is not the same. The two main types are whole life insurance and term life insurance. Other types include variable and universal, though these are less common. Term life insurance covers you for a certain period of time. You can outlive your policy, which sounds strange, I know. If cheap life insurance is what you’re looking for, then term life insurance is what you should choose; it’s much cheaper. The other common option is whole life insurance. This covers you until you die. When you die, your beneficiary gets the death benefit. It never expires before you pass. When term life insurance expires, you either purchase a new policy, or nobody will receive a death benefit. Shop Around Like with any big purchase, it’s important to shop around. For some reason, many people don’t do this for life insurance, because people tend to think all life insurance providers are the same. Of course, this isn’t true. A life insurance policy is only as good as the company that provides it. That company has to last longer than you do, to be blunt. This life insurance website will help you evaluate life insurance companies. Look at overall ratings and read customer reviews. Also think about company longevity. These three tips are a good start to helping you find the right life insurance policy for you and your family. They are also the first big step towards financial security.
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