Life Insurance

Estimate of your life insurance coverage needs

2008-10-17T20:00:00.000-07:00

Life insurance provides peace of mind and protects your family's future.

For a rough estimate of your coverage needs, consider the following to determine the life insurance:

Outstanding Debt

The total dollar amount required to pay off your credit cards, lines of credit, auto loans and personal loans.

Mortgage Balance

The balance remaining on your mortgage and/or home equity loans.

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Pay less for your auto and home insurance:

http://www.autoandhomeinsurance.org/

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Other Debt

The total dollar amount required to pay off your credit cards, lines of credit, auto loans and personal loans.

Emergency Fund

An emergency fund can help fill the gap between a short-term loss of income and a redirected long-term solution. It is generally invested in a liquid account (CD or money market) so that it is easily accessible, and generally provides for up to 3 to 6 months of living expenses. In the event of death, proceeds from the life insurance policy can be used to establish this fund.

Replacement Income/Family Expenses

The amount of your current after-tax monthly income you will need to continue to provide for you family's expenses. This amount typically includes the cost of food, clothing, transportation, utilities, home repair, insurance and childcare.

Annual Income

Consider all of your income from all sources for replacement income. Salary and bonuses -- as well as any investment income.

Years of Income

The number of years your survivors will need replacement income. Generally, this period lasts until retirement. However, children moving out of the home, an expected inheritance, etc. may affect the length of time.

Mortgage Payment

The monthly amount of your mortgage and/or home equity loans.

Rental Payment

The monthly amount you pay for rent.

Current Annual College Cost

The annual college expenses for each of your children you expect to attend college. This amount will depend on the type of college they attend as well as whether they live at home.

Number of Years Until College

The number of years until each child is expected to enter college.

Number of Years In College

The number of years each child is expected to attend college.

Liquid Assets

Liquid assets are assets that can be quickly turned into cash, such as bank accounts, mutual funds, stocks, bonds, etc. Enter the total value of all your liquid assets. Do not include real estate or assets specifically intended for retirement, such as IRAs or 401(k) funds, in this amount.

Life Insurance

Consider any life insurance amounts provided by your employer in case of death. However, keep in mind that if you leave your current job, this coverage will no longer be available to you.

Percentage of Income

Select the percentage of your current income you would like your life insurance policy to provide. A standard percentage is 80%, but your family's needs may differ.

Savings

Consider current savings amounts..

Final Expenses

Final expenses occur as the result of the death of an individual.
Final expenses may typically range from $10,000 to $30,000 per individual and do not include State and/or Federal estate taxes. Your needs may differ from this amount.

Life insurance - Do you Have enough?

2007-07-06T19:55:00.000-07:00

Why buy life insurance online? - A certain number of people will die each year before reaching their normal life expectancy. When a breadwinner dies prematurely, the loss to the family can be tragic in so many ways. Life insurance can provide the money a family needs for continued security when it needs it the most. Life insurance provides a new source of cash and income so a surviving family can continue to live in comfort after the death of its primary income earner.

Life insurance is usually priced based on several factors including: age, current health status, type of employment, sex and race, drinking and smoking habits, travel, sports etc.

The cost of life insurance varies greatly from company to company—as do their services, standards, and policies. A convenient way to compare and obtain a life insurance quote is to use an online comparison service. Once you decide to buy life insurance, don’t delay! Make the purchase. Your beneficiaries will not benefit unless you buy a policy. Also, if you wait, you could develop a health problem, which could cause the rates to go up, or the company could reject your application.

We encourage you to shop around for rates using free online life insurance quote requests and find the best insurance policy at the lowest rate for you.

Different types of life insurance in America

2006-12-17T13:16:00.000-08:00

Term Life Insurance

Term life Insurance is a contract to insure your life for a specified period of time, usually 10, 15, 20, 25 or 30 years. It is the most affordable form of life insurance. You pay a premium monthly, quarterly or annually. If you die during the specified period of time, the beneficiary (the person you leave the policy to) receives a certain amount of money. The shorter the term, the lower the cost. At the end of the term, you may be able to renew the policy for an additional term by paying more money. Sometimes, however, to renew the policy, you will have to get a physical examination or provide the life insurance company with updated health information. If a survivor has a recurrence or experiences another medical condition, the life insurance company may not be willing to renew the policy.

Universal Life Insurance

Universal life Insurance is a fairly new kind of life insurance. It is called permanent insurance because the price stays the same throughout your life and the policy cannot be cancelled as long as you make the minimum payments. It has flexibility. You can pay less than the full amount and keep your insurance at a lower coverage level. Sometimes you can increase the amount of insurance by paying more.

Whole Life Insurance

Unlike universal life insurance, once the premiums for whole life insurance are set, they can’t be changed. Whole life also has cash value, which allows you to borrow from the policy. The money is not just for your beneficiary when you die. You can use it while you are living. While borrowing can lower the amount yourbeneficiary receives when you die, it provides an extra source of money if you need it.

Guaranteed Issue Whole Life

This life insurance is for people with severe health problems. It is not available in all states. Most insurers require that you be at least 40 years old to get guaranteed issue whole life insurance. Most policies only offer up to a $25,000 death benefit.