The Case for Buying Life Insurance

If we have learned anything in the past few years it is that nothing in this life is certain. Just when it feels as if we have finally gotten our lives under control something comes along to knock us down a bit. Perhaps this is why insurance companies have thrived even during our most recent economic recession.

Life insurance is often overlooked by younger families that are under the erroneous belief the only old people need insurance. This type of thinking can lead to disaster. If you want to properly prepare for the future you need to think about buying life insurance.

Did you know that when you die your family has to make more than 100 decisions within the first 48 hours? One thing that you certainly do not want them to have to worry about is how they are going to pay the monthly bills once you are gone. Life insurance is an even more crucial need if you have small children. How heart breaking would it be to see your family lose their house because they can no longer pay the mortgage?

Buying life insurance does not have to be a financial burden. Affordable term life insurance policies are typically available for most individuals from reputable companies such as Xander Insurance or even Metlife. When trying to decide how much insurance you actually need six to ten times your annual income is generally a good rule of thumb. Furthermore, in almost every single circumstance you will be better off by buying a term life insurance policy as opposed to any of the other options that are sometimes available.

As you begin to expand your financial knowledge it is important that you understand just how important life insurance can be to you and your family. I certainly would not want to go to sleep at night without it!

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Life Insurance Products

Life insurance premiums are one of the many types of additional expenses that younger individuals typically consider unnecessary. This type of thinking can have disastrous consequences. If you have a family, or someone that depends on your financial support, then life insurance may be one of the most important purchases you will ever make.

In todays environment there is a plethora of life insurance products for your consideration. Each has its own specific pros and cons so carefully consider all your options before making a final decision.

Term Life Insurance

This is the type of insurance that honest, well intentioned financial planners typically recommend. In addition to being one of the most affordable insurance options is also provides the greatest degree of certainty with respects to death benefits.

Joint Life Insurance

This type of insurance covers more than one individual; generally a husband and wife. Typically joint policies can be obtained for slightly less than the cost of two separate term life insurance policies; particularly when the male has higher than normal health risks.

Whole Life Insurance

I like to refer to whole life insurance as a bad savings account with an insurance component. It provides an immediate death benefit while also providing an increasing cash surrender value which theoretically increases in value as the policy matures. Broker commissions generally erode the value of these policies during the first few years so cashing them out early is never a good option.

Regardless of what type of insurance policy you ultimately choose one major decision that you need to make is how much insurance you actually need. Many financial planners recommend obtaining coverage that is equal to six to ten times your annual salary. This, of course, depends on whether or not you have children or if your spouse has a reliable source of income other than you!

Deciding what type of life insurance, and how much coverage you need, is a personal decision that is dependent upon your specific circumstances. That being said, it is extremely important that you protect your family from financial hardships should you pass away or become permanently disable.

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