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Life Insurance Quotes
The last thing most young couples want to thinkabout is buying life
insurance. But life insurance can provide a security blanket so that
if something happens to the breadwinner, the surviving spouse and
children are protected. Deciding if you need life insurance isn't
difficult - if you have kids or anyone else financially dependent
on you, you need it life insurance! If you need life insurance, doing
a bit of research before you buy can save you a lot of money on life
insurance premiums.
HOW MUCH Life Insurance is Enough?
Just how much life insurance coverage does a family need? The general
rule: buy a life insurance policy that out six-to-eight times your
annual income if you die. A life insurance payment of this size would
cover a surviving spouse's expenses until he or she has time to adjust.
Some families might want even more life insurance coverage than the
six-to-eight multiple to cover expensive private schools for kids
or big mortgages. You should take two things into account when sizing
your life insurance coverage - who you love and who you owe. You may
find you don't have to pay for all the life insurance coverage you
want. Many companies provide life insurance as a benefit to employees,
generally ca. one to two times annual salary. That means if you earn
$40,000 a year and think you need $240,000 in life insurance, your
company life insurance policy will cover the first $60,000 to $80,000.
WHAT KIND of Life Insurance should you choose?
Next decide whether you want term life insurance or whole life insurance.
Term insurance policies provide life insurance coverage for a specified
period, generally for 10 years or more. Whole or universal life insurance
policies cover you as long as you live, and have a savings component
you can borrow against or "cash out" in later years. Young couples
should consider starting with term life insurance, which is more affordable
and then move later to whole life insurance.
WHAT PRICE should you pay for Life Insurance
Young families should consider buying 20-year level term life insurance
with premium and death benefit amounts locked in for 20 years. They
could couple that with a small universal life insurance policy for
added protection. A 30-year-old man in good health can expect to pay
about $270 a year for a 20-year level term life insurance policy of
$400,000 and $500 for a $100,000 universal life insurance policy.
That compares with a premium of about $3,400 year fora $500,000 universal
life insurance policy.
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