Life insurance is purchased in order for your dependents to be looked after financially in case of your death. If you are single and have no dependents, it would probably be wise not to waste your money on life insurance, and use it to enjoy your time alive. However, if you do have dependents, life insurance is a very wise investment. The death of a spouse or parent can have devastating economic effects on a family. While many people think that only the top earner of the house hold needs to purchase life insurance, this is usually not the case. Even if a spouse is unemployed, there life is worth a lot in terms of housekeeping, cooking, taking the kids to school and doing the family bills.
It is expected that an unemployed spouse contributes at least the equivalent of a full time job. Even in this short list, you can see how the death of even an unemployed individual could hit the household financially; therefore everyone in the family should be covered by life insurance. People also tend to overlook the option of purchasing disability and long term life insurance. If you become disabled in the future or have to live in a nursing home, you cannot count on social security to fully cover you that is if you even qualify.
By being covered by these, you are insuring yourself financial ease as you reach old age. Even if you never have to live in a care home, or become disabled, it is much wiser to spend the extra money, even if it is only to breathe a little easier. So whether you are looking to purchase new life insurance, or update your old plan, these are all important options to consider which many people over look.
chalk out which one is best suited for you and your family from the policies made available by different insurance companies. Look into your age, condition of health, income, health habits, marital status, number of children and lifestyle.
You must always keep in mind that if you don’t need it, avoids it. No need to insure. Ask yourself how much your family is depending on your salary. If your family can’t do without your earning, you really need life insurance, otherwise no need to worry. It is difficult to say for how much money should you insure. Yes, it depends on your family’s lifestyle and debts. Generally, people keep it at between five and ten times of your annual salary.
It is recommended that if you're under 40 and don't have a family history of life threatening illness, try Term Insurance. It offers death benefit but no cash value. Otherwise, always go for the Whole Life Insurance, as it offers both death benefit and cash value. However, it is much more expensive than the former. As Term Insurance safeguards the policyholder only for a specified time period, it is appropriate for military and young families. It is cheaper than other policy types, but it has no savings feature.
It is also necessary to calculate your total insurance needs by examining the needs at various stages of your surviving family, and purchase insurance to cover the gaps. Don’t forget to review your life insurance plan periodically. You need to be alert when your financial responsibilities undergo a significant change. Be open to talk about the insurance plan with your spouse and let he/she understand the gaps the current insurance are going to fill.
Some points are also needed to keep in mind while buying insurance. Make your check payable to the insurance company, but not to the agent. And do not forget to get a receipt. Even if you have purchased a policy, have a think and rethink for around ten days. You can always ask for a cancellation and change for an appropriate one with full refund. In case an agent or company contacts you and wants you to cancel your current policy to buy a new one, always contact the original agent or company before making any decisions. And it is up to you whether you try for an expensive one or the cheaper one. But do not forget to gather maximum information.
It is expected that an unemployed spouse contributes at least the equivalent of a full time job. Even in this short list, you can see how the death of even an unemployed individual could hit the household financially; therefore everyone in the family should be covered by life insurance. People also tend to overlook the option of purchasing disability and long term life insurance. If you become disabled in the future or have to live in a nursing home, you cannot count on social security to fully cover you that is if you even qualify.
By being covered by these, you are insuring yourself financial ease as you reach old age. Even if you never have to live in a care home, or become disabled, it is much wiser to spend the extra money, even if it is only to breathe a little easier. So whether you are looking to purchase new life insurance, or update your old plan, these are all important options to consider which many people over look.
chalk out which one is best suited for you and your family from the policies made available by different insurance companies. Look into your age, condition of health, income, health habits, marital status, number of children and lifestyle.
You must always keep in mind that if you don’t need it, avoids it. No need to insure. Ask yourself how much your family is depending on your salary. If your family can’t do without your earning, you really need life insurance, otherwise no need to worry. It is difficult to say for how much money should you insure. Yes, it depends on your family’s lifestyle and debts. Generally, people keep it at between five and ten times of your annual salary.
It is recommended that if you're under 40 and don't have a family history of life threatening illness, try Term Insurance. It offers death benefit but no cash value. Otherwise, always go for the Whole Life Insurance, as it offers both death benefit and cash value. However, it is much more expensive than the former. As Term Insurance safeguards the policyholder only for a specified time period, it is appropriate for military and young families. It is cheaper than other policy types, but it has no savings feature.
It is also necessary to calculate your total insurance needs by examining the needs at various stages of your surviving family, and purchase insurance to cover the gaps. Don’t forget to review your life insurance plan periodically. You need to be alert when your financial responsibilities undergo a significant change. Be open to talk about the insurance plan with your spouse and let he/she understand the gaps the current insurance are going to fill.
Some points are also needed to keep in mind while buying insurance. Make your check payable to the insurance company, but not to the agent. And do not forget to get a receipt. Even if you have purchased a policy, have a think and rethink for around ten days. You can always ask for a cancellation and change for an appropriate one with full refund. In case an agent or company contacts you and wants you to cancel your current policy to buy a new one, always contact the original agent or company before making any decisions. And it is up to you whether you try for an expensive one or the cheaper one. But do not forget to gather maximum information.
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