Which Affordable Life Insurance Policy Covers Your Needs?

Who needs an affordable life insurance policy? How much do you need? Where can you find affordable life insurance? Life insurance is very important. If something happens and you loose your life, you could leave behind bills, funeral expenses, and a lot of unnecessary stress on your family.

What key point should you look for when choosing your affordable life insurance policy?

How much life insurance do you need? How much should it cost? Are you married? Have children? Own a home?

    * How much money will it take for your family to continue to live their current lifestyle without you? Add it all up. Mortgage, funeral expenses, and living expenses for your family. If you have children, what, in their future do you want to make sure is covered? Don't forget any and all current debt, like credit cards, car loans, etc.
    * What is your current budget? How much life insurance can you afford?
    * What type of affordable life insurance policy is right for your personal situation? There are two basic types of life insurance. Term life insurance will expire. Whole life insurance does not expire and will build in value.

Choose the type of affordable life insurance that is right for you and your family.

 

Term life insurance is a policy that will expire over time. Term life insurance is only valid while you are paying the premium. When looking at term life insurance, consider how long that term is.  There are three main types of term life insurance: Level term, this policy offers a fixed premium for 20 years. Annual renewable term, you can renew your policy regularly, but the premium will go up. And finally, decreasing term, the death benefit will decrease over time, which can still be beneficial in its coverage.

The other type of life insurance policy is, whole life. This type will cover you for your entire life. They have a set premium. The cost is more than term life, but the excess cost is invested by the company and you will gain some interest on the invested amount. At some point, if you keep the premiums up, the excess amount could pay your premium.

Another form of whole life is universal life. With universal life when the company earns more, you earn more. Watch out for some of the claims a sales agent may make. They sometimes inflate what you could make on the excess that is put in an account for you.

The Bottom Line

When choosing your life insurance, make sure you educate yourself on the benefits and drawbacks of each type. There is a lot of information on the internet, or in print. Ask colleagues, friends and family.

Consider your current situation. Are you married? Have young children? What do you want your affordable life insurance policy to cover after you are gone? What premium can you afford on your current budget?

No one likes to think about dying, but it is a part of life. It happens. Be realistic and think about how your family will cope financially without you, and what you would like to leave them.

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