HOW MUCH LIFE INSURANCE DO I WANT?
Life insurance is one of the most important gifts that you can give your loved ones. The amount of life insurance that you want depends on different factors in your life.
What are your current financial obligations such as debts and childcare and mortgage?
What will be the future needs of your family? Answering these questions will help you narrow down some insurance options for your family.
You can use this online calculator to determine how much life insurance you need:
Which do I buy?
There are two basic categories of life insurance to choose from. There is term or permanent life insurance. Term insurance can be a good fit for younger individuals and families, who need protection against the loss of income of a primary earner for a stated period of time, at an affordable cost. Permanent insurance accumulates a cash value, and the policy owner may be able to borrow against it tax-free or use it for retirement or other goals (like education). Premiums are initially higher than for term coverage.
WHAT ARE THE TYPES OF PERMANENT LIFE INSURANCE POLICIES?
If you purchase a permanent life insurance policy, you will need to choose which type of permanent life insurance is best for you. There are four types of permanent policies that typically offer built-in savings called “cash value.” The policies vary in how the cash value is invested and whether it will affect the policy’s benefits or premium payments: