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Life Insurance


Life Insurance

Life insurance is not something many would fancy to dwell, upon. However, getting the right coverage can give one’s surviving family members the means to take care of themselves and their families. Getting proper life insurance coverage is wise to be considered a priority for most.

As a general rule, only those responsible for the primary income need to obtain this coverage. This would seem logical, however, in reality there are a myriad of costs, like funeral expenses, that are part and parcel to the inevitable transition everyone will make. It makes perfect sense that each and every individual get at least enough coverage for burial expenses. At a minimum, the primary wage earners should be covered by life insurance of some kind.

Determining the right level and type of life insurance depends upon one’s salary, the number of dependents, how one currently lives and accumulated debts. According to most insurance professionals, one should have a policy in effect that covers anywhere from five to ten times of annual income.

Essentially, there are four types of life insurance policies:

• The Term insurance policy is what offers coverage to people for a specific time period. The majority of which provide coverage for 10 to 30 year “terms.” If the insured individual lives beyond the term, there will no longer be a cash benefit to the policy.

• Whole Life insurance remains in effect until the death of the covered person. It also accumulates a cash value over time.
• A Universal Life insurance policy has a mixture of features that Whole and Term insurance are known for. Any excess in premium payments are credited to the cash value of the policy.

• A Variable insurance policy allows for a build-up of cash value for the insured and serves as an investment vehicle for him or her. The rate of growth of this insurance plan is dependent upon the rise and fall of the stock market.
The cost of one’s insurance policy will vary depending upon one’s age and the kind of insurance chosen. Term insurance tends to be the most inexpensive choice. However, cost should not be the only determination for selecting an insurance policy. Good and proper coverage can protect your family for years to come, providing priceless peace of mind.