15 October 2013 0 Comments

It’s So Simple!

it's so easy!This marks my 170th blog since I started writing them in February, 2012.  That’s a lot of information on life insurance…with a little bit on Annuities and Long Term Care thrown in the mix.  How is anyone to know all they need to know to make the right decision when it comes to buying a life insurance policy?  It’s overwhelming!

Well, if your just logging on to my blog I could suggest that you go back to the very first entry and take it from the start where I began with Term Insurance.  But, if you want the quick answer instead, here are a few simple rules to follow for the typical individual wondering about how to go about the sometimes confusing process of buying life insurance:

  • Decide if you need life insurance.  If anyone you care for depends on your income, or would suffer a financial hardship at your death, then you need life insurance.  If not, then it probably isn’t necessary at this point in your life.
  • Determine how much life insurance you need.  Life insurance equal to ten times your annual income is certainly not excessive if you have a young family dependent on that income.  If you are a non-working spouse caring for children, consider an amount equal to about 25% of that purchased on the earning spouse to cover the cost of child care.
  • If you are under age 55 and on a tight budget, use term insurance to keep the current cost low and amount of coverage to the maximum.
  • When you reach age 55+ determine how much of your coverage you will want to have in force whenever you die and consider using a lifetime guaranteed Universal Life policy instead of Term for that amount.
  • Don’t use the “logic” that you don’t need life insurance because you are healthy.  If you wait until you develop a medical condition it will be more expensive, if available at any price.
  • Deal with an agent who listens and has the ability to deal with more than one insurance company to find you the correct policy to meet your needs at a competitive price.

It’s so simple, but only if you take the action to do something about it.  Find a good agent today and have a conversation that will bring peace of mind to you and your family.  You might start by contacting the sponsor of my blog.

Next…life insurance needs for the small business owner.

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