Why should I get life insurance?
In short, life insurance provides your family with protection in case
something should happen to you. If you pass away without any insurance, it can
be difficult for your family to survive without your income. Life insurance
works to replace your income should you die. The policy will provide proceeds
to your beneficiary after you pass away. Life insurance is recommended for
people of all economic classes. Even for the wealthy, insurance can help offset
taxes and fees.
How is this different from annuities?
Annuities are designed to protect you while you live. This insurance is
designed to protect your family after you die. An annuity is a deal between you
and an insurance company in which you receive a monthly payment from the
insurance company starting in a certain date. Those payments continue for the
remainder of your life. The insurance company will invest your money and pay
you an agreed upon sum on a monthly basis.
Should I have a will?
It is extremely important to have a will. This is true even if your spouse
has one. Essentially, a will gives you control over what happens to your estate
after you pass away. You can determine what happens to all of your money and
possessions. If you die without a will, the court will determine how your
estate is distributed. Wills also prevent you or your spouse from having tax
complications. Wills can be modified at any time.
What happens to my money if I die early?
Basically, the executor of your will is responsible for managing all of
your money when you die.
How much insurance do I need?
Remember, life insurance works to replace your income so that your family
can remain comfortable. Life insurance needs will vary for every individual.
They will also vary as different circumstances in your life unfold. In general,
it is a good idea to have insurance that is equal to five to ten times the
amount of your annual income. When thinking about how much insurance you need,
think about all of the different factors in your life.
Is there a minimum amount needed?
There isn't a universal number that works for everyone. However, there are
several things you should consider when thinking about the minimum amount of
insurance. First, figure out your monthly expenses. Count everything from bills
to car payments to groceries. Then, factor in all of your secured and unsecured
debts. Lastly, consider future expenses such as college educations, weddings,
home repairs, and vacations. This should give you an idea of what you need.
Basically, the minimum amount of life insurance should cover all of your needs
and goals.
Should I get term or permanent insurance?
There are two major types of insurance. Term life insurance is designed for
short term needs. In many cases, people with term policies will protect their
families until their children are able to support themselves. Term insurance
policies will expire in a certain time frame, but they can be renewed. However,
the rates can change. With permanent policies, you have protection on a
permanent basis. The rate will always be the same and you do not have to renew.
The kind you should get will depend on the needs of your family. Term life
insurance is cheaper, but it won't last as long.
What is a living benefit?
Basically, this is the term that describes a portion of your insurance
policy being paid before you die. Usually, a person is only eligible for this
if they have a terminal illness. They can receive up to 50% of their total
amount while they are still living.
Can I name anyone as my beneficiary?
Yes, you can name anyone. In most cases you will choose a spouse, child, or
close relative. Basically, you want to name the person who is most affected by
your finances.
What do I need to buy insurance?
In order to buy life insurance, you need to know how much you want. After
that, you fill out an application and have a medical exam. The initial payment
is also required.
How much is this?
Payments are determined by how much insurance you need, your age, your
general health, and your gender. In general, a good insurance policy will cost
you between $10 and $75 a month.
Can Fiscal Agents Insurance help me?
Fiscal Agents helps monitor the life insurance industry and rates. They can
provide you with a wealth of information so that you can choose the best policy
for your needs.
Colin Woods is a retired insurance agent, and enjoys writing and teaching
in his retirement. If you ever want to learn more about insurance and finance
please have a look at his other works.
Article Source: https://EzineArticles.com/expert/Colin_B_Woods/988455
