Everyone’s situation is different and your needs will not be the same as your neighbor’s even if you have similar lifestyles and family units. In order to choose the right policy, it is important to give your broker some important pieces of your financial information to help your licensed insurance broker understand your financial status and your current and future family needs. A very important question you should ask yourself about life insurance is whether or not you really need it.
Purpose of Life Insurance for Families
The purpose of life insurance is to provide a source of income, in case of your death, for your spouse, children, dependents, or other beneficiaries. It can also serve other estate planning purposes, such as giving money to charity when you die, paying for estate taxes, paying for funeral and burial costs, or providing for a buy-out of a business interest.
Life insurance decisions depend on whether anyone is relying on your income. If you have a spouse, child, parent, or some other individual who depends on your income, you probably need life insurance.
Term Life Insurance Quotes and Cash Value Life Insurance
There are so many different kinds of Life Insurance policies one can buy. In general, there are two categories of life insurance. The Term Life Insurance and Cash value Life Insurance are the most popular of Life Insurance policies.
Life Insurance Products for People from New York to Los Angeles
If you do not know about these products of Life Insurance, it is best to use a broker who deals with several companies and who can educate you about the different options available, how the cash values accumulate and what the policy will cost you over different periods of time. The premium is nearly always based on your current age, but may increase over time.
Different Policies of Life Insurance with Various Circumstances
You may also wish to consider purchasing different policies from different companies, particularly if the protection you want exceeds $500,000. Each state has a life insurance guaranty corporation, required by state law, whose purpose is to protect insurers in the event an insurer is unable to pay a claim. There are, however, limits to this protection. These limits are typically $300,000 to $500,000 per insured individual. Policies that exceed that amount are not covered.
Cheaper Term, Life Insurance and Financial Stability
Inquire as to what is the company’s rating with Best, Standard & Poor’s, and Moody’s? You can find these publications in public libraries or online. The rankings should be in the top three to ensure that a company has financial stability. The majority of people who purchase term life insurance do feel more secure with their future.
Affordable Term Life Insurance and Wealth Preservation
Some people will purchase Life Insurance in a trust. These people might have been under the belief that this will help them avoid gift taxes and estate taxes. We suggest that you talk with your legal representative so you reach your goal to pass on a large amount of your wealth to your loved ones. You are able to get Life Insurance policies quotes online just by entering your Zip Code.