subject: Taking Care of Life Before You Go! [print this page] Taking Care of Life Before You Go! Taking Care of Life Before You Go!
Let's change up just a little bit, we talked about not being covered or not having enough coveragein case of a major medical health insurance issue whether its an accident, injury, or illness. I want to talk to you about financially preparing for the future for your family's security, I know you want your family to continue to have the things they need and keeping the lifestyle they have in case youor your spouseexpire.
What is life insurance?
Life insurance is designed to protect your family's financial security after you die. Life insurance guarantees payment of a specific sum of money on the death of the insured person. The true importance of insurance is that it will substitute improbability with future economic self assurance and security.
What is term insurance?
While there are many styles of term insurance, a term life insurance policy is generally a contract that furnishes life insurance protection for a limited time described in the policy. The face amount of the policy is payable only if death occurs during the time stipulated in the contract. If death occurs after the term of coverage expires, no benefits is payable.
What is whole life insurance?
There are many varieties of whole life insurance, but its primary feature is permanency. In contrast to term insurance, a whole life insurance policy pays the death benefit stipulated in the contract upon the death of the insured, regardless of when it may occur. Whole life insurance usually provides for the payment of a cash surrender value in the event the need for insurance changes and the owner elects to cancel the policy.
How much life insurance do I need?
Everyone's life insurance needs varys depending on their standard of living, family obligations, financial obligations and accumalated wealth. A good "rule of thumb" for a married individual is to be insured for an amount equal to at least 8 times their annual income. However, the best way to determine your actual need is to meet with a licensed agent and do a need analysis.
