Life Insurance

Life Insurance in its most basic form offers financial security to your loved ones to settle any monetary obligations in the event of your death. So if someone depends on you financially, chances are that you need life insurance. To figure out if you need life insurance, think through worst-case scenario like - if you’re the only breadwinner, and you die how will your loved ones cope financially? Would they have the money to pay for your final expenses like funeral costs, medical bills? Will they be able to meet ongoing living expenses like rent, food, clothing, healthcare, transportation, education, etc?

Losing someone is huge emotional upheaval for the near and dear ones. These struggles need not be compounded by financial difficulties. Hence life insurance is a must.

Life Insurance provides instant cash to your family after death. This cash replaces your insured’s income and can help your family meet many of its financial needs. Whether you're married, single parent, stay at home parents, retired, a small business owner or single - life insurance makes sure that people you care about are financially well off to meet their daily expenses even if you're not there to take care of them.

What is a beneficiary?
When you take out life insurance, a beneficiary has to be named. A beneficiary is the person (or a financial institution) who will receive your life insurance proceeds in case of your death. You should name a second dependent beneficiary, in case you outlive the first beneficiary. Pay special attention to the wording of your beneficiary designations to ensure that the right person receives the proceeds of your life insurance policy. Naming one and keeping that choice up-to-date are substantial key elements that have to be taken into account while purchasing life insurance.

Life insurance is easily one of the most important purchases you will ever make in your life. In the face of uncertainties, the proceeds from this effective investment tool can help pay bills, continue a family business, finance future needs such as children's education, protect your spouse's retirement plans and cater to many more such needs. Other than being a reimbursement to your family in the time of the death, life insurance has other benefits.

How much life insurance do I need?
While settling on how much life insurance to buy, figure out what are your goals in purchasing life insurance coverage. Start by evaluating your family's needs. Gather all of your personal information; estimate what each of your family member would need to meet current and future financial obligations. Tally up all of the resources that your surviving family members could draw upon to support themselves. The difference between their needs and the resources to meet those needs forms your life insurance need. Since most people rely on their income completely, it is advisable to buy protection that is the equivalent of anywhere between 5 and 8 times your annual income.

Types of Life Insurance
Choosing life insurance product for most people is simply guesswork, but in fact it is quite a complex process that depends on a host of different factors. The two most important level of cover are Term Life Insurance and Whole Life Insurance.

The most important difference between Term Insurance and Whole Life insurance is that, term insurance provides protection against death during a specified period and whole of life insurance provides protection against death at any time.

It's amazing how much rates vary from company to company for the exact type of coverage. Rates and coverage differ from state to state, shop around on your own or talk to an independent life insurance agent to make get a life insurance plan that's correct for you.

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