Friday, June 5, 2009
One of the most important things you can do as parents is to ensure the financial welfare of your children in the event of your death. Life insurance is the best way to be rest assured that your children will be taken care of if you die. Although we never like to think of that kind of thing happening, but it does.
What is Life Insurance
Life insurance is a policy that you can enter with your insurance company, which promises a certain amount to your beneficiary(ies) in the event of your death. Usually, a spouse will name the other spouse as well as their children as beneficiaries of the policy. As part of the agreement with life insurance, your insurance policy will be a monetary value, that you will in return, pay a monthly premium for. Premiums usually depend on your age, gender, occupation, medical history and other factors.
There are other types of life insurance that may provide benefits for you and for your family while you are still living. These policies can accrue a cash value on a tax-deferred basis and can be used for future needs such as retirement or your child's education.
Do I Need Life Insurance
Earning an income allows you and your family to do many things. It pays for your mortgage, buys cars, food, clothing, vacations and many other luxuries that you and your family enjoy. However, certain situations can cause you to lose your income, and those who depend on you also depend on your income. If any of the following statements about you and your family are true, then it is probably a good idea for you to consider life insurance.
1) You are married and have a spouse.
2) You have children who are dependent on you.
3) You have a parent or relative who is aging, or disable and depends on you.
4) You have a loved one in your life that you wish to provide for.
5) Your 401K retirement plan, pension and savings aren't enough to insure your loved one's future.
What Are My Life Insurance Options
How Can I Save Money With Life Insurance
Below you will find some suggestions on ways to save money while purchasing the life insurance policy that is right for you.
1) If you don't need life insurance, don't buy it. Don't buy more insurance that you actually need in order to provide financial security for your family.
2) Shop around for competitively-priced life insurance policies while you are healthy. Don't smoke, or do anything that might increase your rates. Take care of yourself by exercising regularly and maintaining a moderate and healthy weight.
3) If you purchase a term life insurance policy, look for guaranteed and renewable policies. That way you won't have to periodically continue to shop around for those life insurance policies.
4) You should only buy optional forms of coverage such as riders only if necessary.