Life Insurance – Dying To Know The Facts.

Feb 27 • Finance • 1209 Views • Comments Off on Life Insurance – Dying To Know The Facts.

Most financial professional consider LIFE INSURANCE to be the best value for any type of insurance policy designed to pay a benefit if you die.  Many of those same experts believe that, at the very least, an individual or family should have enough insurance to pay off their home mortgage and other debts and several years worth of lost income.

That Raises Three Questions:

  • How  Much Do You Need?
  • What Type Of Policy?
  • Where Should You Buy It?

For most people, life insurance is simply a way to ensure that a surviving spouse and children can continue to have a decent lifestyle. Many experts suggest that a primary breadwinner should have insurance equal to 6 to 10 times their annual income. In most cases, this will provide enough money for the survivors to be at least comfortable. If you have young children or other special needs, additional amounts should be considered.

A key thing to consider when making this decision is the amount of income your family will need in the event of your death. After all, your goal in purchasing life insurance most likely is to ensure that your paycheck continues for those who are dependent upon your income or to pass some of your wealth to your heirs.  Many experts think families need about 75 percent of their current income should something happen to the primary breadwinner.  It also is important not to ignore the need for life insurance protection in a dual income family. The death of either spouse could create a financial strain on your family. Households with one stay-at-home parent also should consider coverage, as the survivor could have trouble paying the mortgage, child care expenses, and contribute to their children’s college plans after the death of the nonworking spouse.

Deciding whether to buy a term policy or a cash value whole life policy should be carefully considered. Life insurance  policies are extremely popular because they are usually much cheaper and do not suffer an “Early Termination Penalty” on any accumulated cash value. Reviewing the options with a  Life Insurance Specialist will allow you to make an informed decision. Life insurance is one of the cheapest ways to protect your family’s future income should any problems arise, the old adage applies here, it’s better to be safe than sorry and leaving your family well protected should be a huge priority in life.

Author Bio:

This post was contributed by Damian Youell who is the lead financial adviser at NeedingAdvice.co.uk. He specialises in offering advice on Business Protection Insurance offering products such as Relevant Life Policies Insurance and Key Person Cover. Other areas of financial advice that he can assist with include Enhanced Annuities, Mortgages and Investments.

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