Life Insurance Should Be Part of Your Financial Pla
Many people avoid thinking about life insurance, simply because it means thinking about your own death. But, life insurance quotes should be part of everyone's financial plan, especially if you are the main source of income for your family. There are two primary types of life insurance available.
Term life insurance is the first type. This is the type you most likely have through your employer. As long as you pay the premiums, you're insured for the face value of the policy. Premiums go up as you get older, but the payout does not.
The next type of life insurance is whole life. This type of policy increases in value as you pay into it, and has level premiums throughout its life. The value of the policy goes up and you can even withdraw some of the value before your death, such as to use in a downpayment on a house or to pay for college. This policy allows you to see benefit even before your death.
Often, life insurance companies will offer different forms of both basic types and can customize a policy for you.
Often, the most difficult decision about life insurance is determining the amount you need.
If you're the primary breadwinner in your family, how will your spouse pay the monthly bills without your income? Many families choose to have enough life insurance on the primary breadwinner to support the family for a year in the event of death. Some families choose to have life insurance in an amount large enough to pay off the mortgage in the event of the death of the primary breadwinner. The logic here is that without a house payment, the family can live on the secondary breadwinner's income.
If one spouse stays at home, many families think they don't need to insure this spouse. However, you should consider the cost to pay someone to perform the tasks that the stay at home spouse performs, such as child care, house cleaning and cooking.
It's important to reevaluate your life insurance needs periodically. A single person just beginning their career may choose to have little or no life insurance. However, once married and raising a family you'll likely want a significant amount of coverage. Once your children leave the nest, monthly expenses drop significantly, and you may need a smaller amount of life insurance. The same is true once your mortgage is paid in full.
There are lots of things to think about when it comes to life insurance quote. Think about how much coverage you need and then work with an insurance agent to ensure that this part of your financial plan is covered.
Term life insurance is the first type. This is the type you most likely have through your employer. As long as you pay the premiums, you're insured for the face value of the policy. Premiums go up as you get older, but the payout does not.
The next type of life insurance is whole life. This type of policy increases in value as you pay into it, and has level premiums throughout its life. The value of the policy goes up and you can even withdraw some of the value before your death, such as to use in a downpayment on a house or to pay for college. This policy allows you to see benefit even before your death.
Often, life insurance companies will offer different forms of both basic types and can customize a policy for you.
Often, the most difficult decision about life insurance is determining the amount you need.
If you're the primary breadwinner in your family, how will your spouse pay the monthly bills without your income? Many families choose to have enough life insurance on the primary breadwinner to support the family for a year in the event of death. Some families choose to have life insurance in an amount large enough to pay off the mortgage in the event of the death of the primary breadwinner. The logic here is that without a house payment, the family can live on the secondary breadwinner's income.
If one spouse stays at home, many families think they don't need to insure this spouse. However, you should consider the cost to pay someone to perform the tasks that the stay at home spouse performs, such as child care, house cleaning and cooking.
It's important to reevaluate your life insurance needs periodically. A single person just beginning their career may choose to have little or no life insurance. However, once married and raising a family you'll likely want a significant amount of coverage. Once your children leave the nest, monthly expenses drop significantly, and you may need a smaller amount of life insurance. The same is true once your mortgage is paid in full.
There are lots of things to think about when it comes to life insurance quote. Think about how much coverage you need and then work with an insurance agent to ensure that this part of your financial plan is covered.
