Understanding Life Insurance
Most people think that life insurance is one of those things that they should get around to getting one of these days. However, most folks are completely unaware of its importance and significance in the lives of everybody. In this article, we’ll go over some of the most common questions regarding life insurance. Do I Need a Life Insurance Policy?
First of all, most people wonder if they really need life insurance. The answer is yes, you do. Even if you’ve got all your bills paid, don’t have any dependents, and have a steady flow of cash, you need something. Funerals are expensive, and there are other financial matters that will need taking care of. Truth be told, everybody should have at least some life insurance.
What Kinds Of Life Insurance Are There?
There are two basics types. One is called Term Life. This is the cheapest, but it only covers you for a certain amount, say ten or twenty years. The other is Whole Life. This is more expensive, but covers you for your entire life. Also, this builds up cash value over time, which you can take out in certain situations. Many people choose Whole Life because it is more flexible.
How Much Insurance Do I Need?
This is a question that many people have. If you have dependents, figure in the amount of your yearly salary, times the years they’d be left if you were to suddenly pass away. Multiply this by about fifty percent, to take into account inflation and other unrelated costs. Also consider adding in any pensions you would otherwise be receiving.
If you don’t have any dependents, then you should get enough to cover final expenses, plus extra for unforeseen expenses. Figure about twenty or thirty thousand. Keep in mind that the younger you are the less expensive it’s going to be.
How Much Does It Cost?
The price of any insurance policy is based on a number of different factors. Primarily your age and your health. Other lifestyle factors such as smoking, being overweight, or working at a dangerous can also affect your rates. In addition, the length of the term will also play a part.
Am I Too Old For Insurance?
You can always buy insurance. Just realize that the older you get, the more expensive it’s going to be. That’s why it’s better to get it now, rather than later.