Life Insurance Facts

Did you know that due to recent changes in life expectancy, you are probably overpaying for life insurance.  In most cases we can provide you with more coverage for less money.

Protect Your Family with the Right Life Insurance Policy!

If you have a family to protect, life insurance is an essential purchase. If you were to die unexpectedly, your family would be left scrambling as they try to pay the bills and rebuild their lives. If you have sufficient life insurance coverage in place, you will be able to provide for your family even when you are no longer around.

How Much Life Insurance Do You Need?
When trying to determine the best life insurance, first determine how much coverage you will need. Ideally, you want to have a death benefit that can provide an income stream equal to what you make on the job. This will allow your surviving family members to draw on the money they receive to pay the mortgage, deal with monthly bills and live the lifestyle to which they have become accustomed. In order to be reasonably sure that the money will last, financial experts recommend a withdrawal rate of no more than 4%. This means that, in order to generate $40,000 in annual income, you would need to have $1 million in life insurance coverage. While this amount may seem daunting, term life insurance can be surprisingly affordable — especially if you are young and in good health.

Term Life Insurance
Unlike whole life, term life insurance is designed to provide a death benefit — and only a death benefit. Whole life incorporates an investment element, but term life provides a simple death benefit in the event of your death. When buying a term life policy, you will be able to choose the length of the term — common terms are 10, 20 and 30 years. At the expiration of that term, you will have the option to purchase a new term life policy. For many individuals, the simplicity of the term life policy makes it the very best option available.

Mortgage Life Insurance
People buy life insurance for many different reasons, but one of the most common reasons is to make sure the surviving family members are able to keep the family home. Buying a term life policy equal to the outstanding balance on your mortgage is a great way to protect your home and your family, and the costs of this type of term life insurance can be surprisingly low.

Buying the right life insurance can be a real challenge, but by becoming an educated consumer you can increase your odds of getting the best policy for the lowest possible premium. By learning about life insurance you will be able to provide your family with the protection they need and deserve.

 

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