Choosing a Life Insurance Plan Tips

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Why Consider Life Insurance for the Whole Family?

Tips on Considering Life Insurance for the Whole Family

Life insurance isn't just for those employed outside the home. Use the following tips to determine if a life insurance policy is appropriate for family members that do not earn wages.

Tip 1. Life insurance is an Important Investment for the Whole Family

  • Most of the concern with life insurance is replacing the income of the policy holder. Life insurance can be an important financial decision for family members that do not earn income, too. For example:
    • Stay at home moms may not earn income, but family members should be mindful that someone will have to assume those duties in mom's absence. Chances are that the family may have to employ someone to care for the children and manage all the responsibilities of the household.
    • When calculating how much life insurance is needed, policy holders should calculate the annual value of all the work performed. That figure should be multiplied by the number of years mom would have been at home with the children to arrive at the policy amount. Some policy holders may want to include final expenses in the life insurance plan.
Tip 2. Life Insurance Can Be an Estate Builder for Children

  • It can be especially difficult to consider life insurance for a child. Hesitant parents should be aware that certain types of life insurance can be an investment in a child's future. In these cases, parents should focus their life insurance purchase on creating options for the child's future rather than the worst case scenario.

What Are The More Popular Life Insurance Options?

Tips on Life Insurance Options

New options and products mean it is wise to compare life insurance plans. Even among the more common types of life insurance – term, whole and universal – there is wide variation. Use the tips below to help you narrow the field and focus on the best life insurance for your family.

Tip 1. Term Life Insurance Insures Against the Possibility of Death

  • This type of plan may not cover the entire life of the policy holder. Term life insurance can cover periods as short as one year or as long as 30 years. If the policy holder dies during the term, beneficiaries receive the face amount of the policy.
  • Standard term life insurance is the least expensive and most straightforward option among insurance products.
Tip 2. Whole Life Insurance Provides Life Long Insurance Coverage

  • This type of plan is designed to cover the policy holder over the entire course of life. The policy builds cash value and pays a death benefit as long as premium payments remain current.
Tip 3. Universal Life Insurance May Also Provide Lifetime Protection

  • Like whole life insurance, universal life insurance is a permanent insurance policy. Unlike whole life insurance, universal life insurance does not offer the security of guaranteed lifetime protection. Policy holders interested in this option can talk with a life insurance agent and add riders that create a universal life policy that meets their particular needs.


Life Insurance Coverage Options

Life insurance can be purchased to provide a means of payment for burial expenses. It can also be purched to pay for burial expenses and your familys debt. Additionally, life insurance can be purchased so the proceeds are enough to set up college or trust funds for your children and family.


Why Get a Life Insurance Policy?

You took your time when deciding what neighborhood to live in. You checked crime statistics, school zones and school performance, and you made sure there were all manner of modern conveniences nearby. Without a life insurance policy to ensure that your family can remain in the home you carefully selected, your family may be forced to move and unable to afford to be choosey about where they go.


Insurance Agents

Insurance agents can represent many different life insurance companies. This can benefit you because this gives them information about a ide range of products, riders and premiums that can allow them to find a policy that better suits your needs.


State High Risk Pools

If you are uninsurable and don't have access to group health insurance coverage, find out if your state has a high risk pool. High risk pools are state-subsidized insurance programs designed to insure the uninsurable.

Why Should I Work With a Life Insurance Agent?

Tips on the Benefits of Life Insurance Agents

There are so many questions that come up when considering life insurance. How much life insurance does one need? What is the best life insurance? What is the best way to make an accurate life insurance comparison? For the answers to these questions and others, why not go right to the source – your life insurance agent.

Tip 1. A Life Insurance Agent is Your Link to Valuable Information

  • Even if you do most of your information gathering on the Internet or by collecting brochures, your insurance agent is still a valuable component of the insurance buying process.
  • Why?
    • Using experience and complex knowledge of insurance products your agent can help you project and avoid unanticipated outcomes.
    • Life insurance agents have in depth knowledge about available products. Just like with mortgages, even if you understand the process well, nuances may escape you. That is less likely to happen with a life insurance agent.
    • Your life insurance agent can help you include considerations you may overlook.
    • Experience helps the life insurance understand any differences between how the product looks on paper and, ultimately, how it performs. That experience is an important benefit for policy holders.


Prenatal Care

If you are pregnant and unable to afford health insurance, find out if your state has any state sponsored health programs for pregnant moms and young children. Plans like these are offered by many states and can keep you and your baby safe and healthy untl you get back on your feet.

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