Why You Need to Purchase Life Insurance
With America’s financial future in debate, paying an extra bill for life insurance each month may not seem to be worth it. If you have a family, then life insurance is one of the most important purchases you can make to ensure that your dependents will be taken care of if something unforeseen should happen to you.
Life Insurance Products
There are a variety of life insurance products that can ensure the financial security of your family if you are no longer able to provide for them. Without your salary your family will still need to afford medical care, the children will need funds for education, and if you own a home, the mortgage payments must be met.
- Term Life Insurance –This is the most affordable kind of life insurance. You have a guaranteed premium for a certain period of time that will provide benefits if you should meet your unexpected death.
- Whole Life Insurance –This type of insurance will provide you benefits guaranteed in case of death, or a fixed cash value for your premium or guaranteed amount.
- Universal Life and Long Term Care Combination Insurance Product –A wonderful product for those that want to ensure that they will benefit if they need long term medical care as well as benefits for your beneficiaries upon your death. This product will leave nothing to chance if you are severely injured or develop a debilitating disease where you will need to be in a care facility and will afford your dependents benefits if you should die.
- Variable Life Insurance- Having this life insurance product gives the holder more control over where and how their premiums are invested. It provides flexibility similar to the fixed universal life insurance product.
- Universal Life Insurance- This is the most flexible life insurance product. It provides your beneficiaries death benefits and it also allows the holder to accrue cash value that can be used to fund any financial needs you may have in the future.
Deciding How Much Life Insurance You Require
The amount of life insurance you will require will depend upon your family’s needs should you no longer be able to care for them. An easy way to come to a figure is to take your gross income annually and multiply it by a number of years such as 7 or 10. Or you might want to multiply yearly living expenses by the same number of years that doesn’t include the amount of income you put into investments or savings. It also depends upon the age of your children when you are shopping for life insurance products. The younger the child the more years you will want to multiply.
Though life insurance is a personal decision each individual must make for themselves, having a family that is able to cope financially in case of your death or disability is an important reason for you to look into the many different life insurance products. Having your family financially secure when you are gone should be a top priority for everyone.
Good overview! Many people here in Canada know only the most classical one, whole life insurance. But market offer is much bigger and when you are going to decide about your future, about your financial safety, it’s really good to know the whole variety.
Lorn
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Life insurance as for me is one of the most important thing to buy, It will make you more confident what ever happens there is somebody can take over or help on you family.
Life insurance is too often overlooked by younger people with families under the mistaken assumption that only old people need it! That can lead to catastrophe, so thanks for the excellent breakdown of what is available out there. This is solid advice.
Jerry