We all know that buying life insurance is a smart thing to do at some point in our lives. Some people have clear ideas about what kind and how much they need to meet their needs. Others have to choose between two bad options. These people don't know how much or what kind to buy...
You might say that asking a life insurance agent is the easiest thing to do. If you know a good one that sells for a company with a good reputation, go for it. If you don't, here are some suggestions that might help.
What a single person needs in insurance
If you are single, the amount of life insurance you need is the amount it will cost to pay for your funeral and other final expenses. I'm talking about things like paying off debts that could leave a loved one with the bill. There should also be money for attorney fees and taxes on the estate.
What a married person with kids needs
The needs of a married person are different, especially if they have children. Most of the time in the world we live in now, both parents work. Both of them help keep the house running. If either parent dies, it could cause a lot of trouble with money. No matter if money is coming in or not, bills still have to be paid. The rent or mortgage needs to be paid, and the survivors need to eat and wear clothes. They will still need a car and enough money to pay their utility bills.
Every child does something these days. It could be a sport or something else they do outside of school. All of these things are expensive.
You should keep in mind that the cost of living for a certain family won't change much if one of the breadwinners is no longer there, unless that person lived a very lavish lifestyle. For example, if it costs $50,000 to live now, it will probably cost close to that much after a spouse dies. So, we should buy enough life insurance to make sure that the person's income will continue after death.
What kind of life insurance should we get now? Term life insurance is a popular choice, but there are a lot of different plans available. This is what you should do. Figure out how long you will need the policy, and then buy a level-term policy that fits that time period.
The age of your youngest child is 12. It is expected that he or she will finish high school by the time he or she is 18, but you also have to think about 4 years of college. So, you need to buy a policy that will give you enough money until this child is 22 years old. You should also add an amount that would pay for all the kids' college costs if you died. The same thing should be thought about your spouse. This problem could be fixed with a 10- or 15-year term policy.
You might also want to think about getting life insurance for a longer time so that your spouse will also be taken care of. You might want to buy a 30-year term policy in this case. Depending on the company you work with, you can change it to a permanent plan after a certain number of years. On the other hand, you could choose to buy a permanent policy like whole life, universal life, variable universal life, or variable life, which will cover you from the start and last for a longer time.
For more information, click here: http://www.lifeinsurancehub.net/types-of-life-insurance-policies.html
