Let's Talk Life Insurance

Let's face it who really knows all there is to purchasing life insurance? I certainly didn't understand it all when we were shopping for it. My husband is a smoker and that was quite an interesting twist to purchasing a policy also. Buying life insurance is not like any other purchase you will make. When you pay your premiums, you’re buying the future financial security for your family. Among its many uses, life insurance helps ensure that, when you die, your dependents will have the financial resources needed to protect their home and the income needed to run a household. Choosing life insurance is an important decision, but I found it to be complicated. As with any major purchase, it is important to understand your needs and the options available to you. You may want to consult a Netquote.com agent. Life insurance also can be used to help with other financial goals, such as funding retirement or education expenses. Which was news to me when we started shopping for life insurance. I only had the policy that was available through my employer for me and my family ~ the usual $10K & $5K plans and if I ever left that employer the policy was cancelled. The following information has been compiled by the American Council of Life Insurance, a trade association of more than 600 life insurance companies. Collectively, these companies provide about 90 percent of the life insurance in force in the United States. A proud member is Netquote.com.
The best way to make an informed decision about buying life insurance is to become familiar with the basics. Why do I need life insurance? Life insurance is an essential part of financial planning. One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. The cash provided by life insurance also can help ensure that your dependents are not burdened with significant debt when you die. Life insurance proceeds could mean your dependents won’t have to sell assets to pay outstanding bills or taxes. An important feature of life insurance is that no income tax is payable on proceeds paid to beneficiaries ~ this is huge ~ other money left to your dependents might be subject to the death tax. How much life insurance do you need? Before buying life insurance, you should assemble personal financial information and review your family’s needs. A number of factors to consider when determining how much protection you should have include: any immediate needs at the time of death, such as final illness expenses, burial costs and estate taxes, funds for a readjustment period, to finance a move or to provide time for family members to find a job; and ongoing financial needs, such as monthly bills and expenses, day-care costs, college tuition or retirement. One rule of thumb is to buy life insurance that is equal to five to seven times your annual gross income. For your insurance needs or questions, I suggest you visit Netquote.com as I did.

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