August 7, 2013 Admin | August 7, 2013 Who needs life insurance and who does not? What type of life insurance is best when needed?
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Millions of people don’t need life insurance. If no one is counting on you financially, it’s very likely you don’t need life insurance. If you need life insurance (someone needs your income to survive), buy term.
Right again, Katherine. Let’s recap. Life insurance is there to provide for the people you leave behind who count on you financially to survive. If that is the case, follow Katherine’s advice and buy an inexpensive term policy from a term clearinghouse that searches throughout the U.S. to find the right one for you. Term4sale.com and accuquote.com are two of many. Stay away away from the life insurance agents and the cash value policies (whole life, universal life, and traditional life) they peddle. They are expensive and that usually means you don’t get the needed amount to cover the needs of your loved one’s.
When selecting term life insurance, focus on ART (annual renewable term) or level term (premiums stay the same over a selected period like 5, 10, or 20 years). For most folks, have 6 to 10 times your yearly income can get the job done. This would mean if you made $50,000 a year, you would have a $300,000 or up to $500,000 policy. That is not good enough, though. You also must teach your loved ones what to do with that money if the day comes. This is IMPORTANT.