People don’t think about life insurance much and many think that
they don’t need one. It’s understandable why many believe this
since people are hard-wired to avoid thinking about their own death.
It’s a macabre subject and many believe that getting life insurance
is a pricey proposition.
But then again, life happens. Or more aptly, death happens. We’re
all headed that way and some go sooner than others. If you have a
family that depends on you, your untimely demise can be catastrophic
for your family both emotionally and financially. There’s the
medical and funeral expenses that need to be paid, your household’s
monthly bills will continue to arrive, and there’s also the
question of other future expenses like college tuition fees for the
kids, and retirement income.
To help take care of the financial needs of your dependents upon your
demise, you should consider getting life insurance. Life insurance is
a binding agreement between you (the insured) and the insurer. Under
this contract, the insurer promises to pay your designated
beneficiary an agreed-upon sum in the event of your demise. Some life
insurance policies start to give out benefits when the insured
becomes terminally or critically ill.
The benefits that your designated beneficiary will receive from your
life insurance will help them continue to live comfortably after your
death. The benefits can also go towards paying potential federal
estate taxes.
So, are you ready to start looking for life insurance? There are
sites that let you compare many of the life insurance products from
many insurance companies. These sites may also have an insurance
calculator to handily help you determine the amount of life insurance
coverage that you need.
Life Insurance Calculators
If you talk to an insurance salesman, they will ask you several
questions about your financial situation and future financial needs
to determine your life insurance coverage. Life insurance calculators
work the same way. You answer a few questions that will help the
system compute for the amount of life insurance coverage that fits
your unique situation.
Some of the questions that the insurance calculator will likely ask
you include the amount of debt that your family needs to pay, the
medical and funeral expenses that your family may incur when you die,
the amount of income that you put in, and how much of that needs to
be replaced.
An insurance calculator will also take into account the living
expenses of your survivors, how many children you have, and how many
of them plan to go to college. Details about your savings and
retirement accounts will also be asked so these can be factored into
the computation.
All of that information will help the calculator come up with the
amount of life insurance coverage that you need. The next step for
you is to find an insurer that offers a life insurance product that
can provide such coverage.
The sites that offer life insurance calculators can also provide you
with useful information on which insurance provider gives the best
rates for that amount of coverage so you will know the cost of the
premium you need to pay for.
Gilbert Bermudez writes for Compare Hero, Malaysia’s leading credit
card comparison website. Loves fishing, swimming and a
hobbyist.
The above article has posted by Amy Lewis, owner of the finance corner. For more details about Amy you can visit her social media profiles in below mentioned urls:
Facebook: http://www.facebook.com/lewisamy3
Twitter: http://twitter.com/lewisamy3
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