A lot of people buy life insurance to ensure that their loved ones will be financially secure when they die. The no. 1 reason why people buy this is income replacement.
Non-earning caregivers also have an important - and often overlooked - economic value that should be covered by life insurance.
Those interested in reaching specific business or estate-transfer objectives also buy life insurance.
There are many types of life insurance policies available depending on your goals, and there are huge price differences among different companies offering identical coverage. You can find policies from hundreds of companies in the United States. Most financial planners will suggest that each family income provider carry no less than 10 times their annual income in life insurance to protect their families.
When you are looking to buy this insurance, here is the order in which you should do it:
1) Assess your needed life insurance amount, remember this needs to be at least 10 times what you make per year.
2. Pick the most apt policy type that meets your goals, whether whole or term.
3) Choose possible companies by setting high standards for financial stability ratings.
4. Compare prices until you find the best one.
5. Choose an agent that you're comfortable with, the agent that gave you the best coverage at the best price.
A lot can be said for each of the steps, but in reality they are very easy to understand and follow. Number 1 is very obvious. Number 2 is a little trickier.
Life insurance policies are divided into two main types:
Term life insurance provides death protection with no side funds or "cash values"--giving the lowest cost per $1,000 of death coverage pruchased).
Permanent life insurance provides "cash value" wherein there's a return-on-investment component as part of the policy, making the policy more complex and expensive (most expensive cost per $1,000 of coverage).
Picking out an insurance agency is now easy because you can do your research through the Internet. The Internet can yield pertinent information (from customer feedback to ratings) you will need from the agencies you get quotes from. Narrow down your choice of agencies by picking out the ones with high ratings. Once you've zeroed in on which agency gives the best price for the best coverage, by all means, purchase that life insurance policy that will secure the future of your family.
Non-earning caregivers also have an important - and often overlooked - economic value that should be covered by life insurance.
Those interested in reaching specific business or estate-transfer objectives also buy life insurance.
There are many types of life insurance policies available depending on your goals, and there are huge price differences among different companies offering identical coverage. You can find policies from hundreds of companies in the United States. Most financial planners will suggest that each family income provider carry no less than 10 times their annual income in life insurance to protect their families.
When you are looking to buy this insurance, here is the order in which you should do it:
1) Assess your needed life insurance amount, remember this needs to be at least 10 times what you make per year.
2. Pick the most apt policy type that meets your goals, whether whole or term.
3) Choose possible companies by setting high standards for financial stability ratings.
4. Compare prices until you find the best one.
5. Choose an agent that you're comfortable with, the agent that gave you the best coverage at the best price.
A lot can be said for each of the steps, but in reality they are very easy to understand and follow. Number 1 is very obvious. Number 2 is a little trickier.
Life insurance policies are divided into two main types:
Term life insurance provides death protection with no side funds or "cash values"--giving the lowest cost per $1,000 of death coverage pruchased).
Permanent life insurance provides "cash value" wherein there's a return-on-investment component as part of the policy, making the policy more complex and expensive (most expensive cost per $1,000 of coverage).
Picking out an insurance agency is now easy because you can do your research through the Internet. The Internet can yield pertinent information (from customer feedback to ratings) you will need from the agencies you get quotes from. Narrow down your choice of agencies by picking out the ones with high ratings. Once you've zeroed in on which agency gives the best price for the best coverage, by all means, purchase that life insurance policy that will secure the future of your family.
About the Author:
For a local life insurance agent in Orange County visit http://lifeinsurance.inorangecountyca.net. She offers life insurance irvine, ca.
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