Topic 1: Things You Absolutely Need To Know About Life Insurance
Life insurance is one of the pillars of personal finance, deserving of consideration by every household. Yet, despite its nearly universal applicability, there remains a great deal of confusion, and even skepticism, regarding life insurance.
To Help, Here Are Things You Absolutely Need To Know About Life Insurance:
If anyone relies on you financially, you need life insurance:
It’s virtually obligatory if you are a spouse or the parent of dependent children. But you may also require life insurance if you are a life partner, a child of dependent parents, the sibling of a dependent adult, an employee, an employer or a business partner. You may, consider using life insurance as a strategic financial tool.
Life insurance does not simply apply a monetary value to someone’s life:
Instead, it helps compensate for the inevitable financial consequences that accompany the loss of life. Strategically, it helps those left behind cover the costs of final expenses, outstanding debts and mortgages, planned educational expenses and lost income. But most importantly, in the aftermath of an unexpected death, life insurance can lessen financial burdens at a time when surviving family members are dealing with the loss of a loved one.
Life insurance is a contract (called a policy):
A policy is a contract between a life insurance company and someone (or occasionally something, like a trust) who has a financial interest in the life and livelihood of someone else. The insurance company pools the premiums of policyholders and pays out claims—called a death benefit—in the event of a death.
There are four primary players, or roles, in a life insurance policy:
These roles belong to the insurer, the owner, the insured and the beneficiary. The insurer is the insurance company, responsible for paying out claims in the case of a death. The owner of the policy is responsible for premium payments to the insurance company. The insured is the person upon whose life the policy is based. The beneficiary is the person, trust or other entity due to receive the life insurance claim
Determining the optimal life insurance policy for you doesn’t have to be complicated:
While we could get really granular with a detailed life insurance needs analysis, it’s more important to get set up with something you can comprehend than it is to push off an important decision due to life insurance’s intimidating complexity. In the vast majority of situations, a household would be well cared for simply by buying enough life insurance to replicate all or most of the insured’s income for a term as long as the household expects to need that income.
Consider using a live person to help in your death planning:
There are many online tools that can help give you an idea of how much money you should pay for the policy you need. But once you get to that point, it is recommend to get in touch with a real, live insurance agent who can walk you through the application and underwriting process.
Source: www.forbes.com
To Help, Here Are Things You Absolutely Need To Know About Life Insurance:
If anyone relies on you financially, you need life insurance:
It’s virtually obligatory if you are a spouse or the parent of dependent children. But you may also require life insurance if you are a life partner, a child of dependent parents, the sibling of a dependent adult, an employee, an employer or a business partner. You may, consider using life insurance as a strategic financial tool.
Life insurance does not simply apply a monetary value to someone’s life:
Instead, it helps compensate for the inevitable financial consequences that accompany the loss of life. Strategically, it helps those left behind cover the costs of final expenses, outstanding debts and mortgages, planned educational expenses and lost income. But most importantly, in the aftermath of an unexpected death, life insurance can lessen financial burdens at a time when surviving family members are dealing with the loss of a loved one.
Life insurance is a contract (called a policy):
A policy is a contract between a life insurance company and someone (or occasionally something, like a trust) who has a financial interest in the life and livelihood of someone else. The insurance company pools the premiums of policyholders and pays out claims—called a death benefit—in the event of a death.
There are four primary players, or roles, in a life insurance policy:
These roles belong to the insurer, the owner, the insured and the beneficiary. The insurer is the insurance company, responsible for paying out claims in the case of a death. The owner of the policy is responsible for premium payments to the insurance company. The insured is the person upon whose life the policy is based. The beneficiary is the person, trust or other entity due to receive the life insurance claim
Determining the optimal life insurance policy for you doesn’t have to be complicated:
While we could get really granular with a detailed life insurance needs analysis, it’s more important to get set up with something you can comprehend than it is to push off an important decision due to life insurance’s intimidating complexity. In the vast majority of situations, a household would be well cared for simply by buying enough life insurance to replicate all or most of the insured’s income for a term as long as the household expects to need that income.
Consider using a live person to help in your death planning:
There are many online tools that can help give you an idea of how much money you should pay for the policy you need. But once you get to that point, it is recommend to get in touch with a real, live insurance agent who can walk you through the application and underwriting process.
Source: www.forbes.com