What you'll discover in this report:
·
How
to make sure your family is really protected!
·
Cut
through the confusing "insurance jargon" and know what a life
insurance policy really says!
·
The
different kinds of life
insurance policies...what they're
good for, when to use which one
·
Why
smart consumers use life insurance...and the mistakes that other people make
too often
·
...and
much more!
How to protect
your family if you die...
·
Life
insurance is a simple concept -- you buy a policy that pays to your beneficiary
or beneficiaries when you die -- but the decisions of what kind life insurance
to purchase, how much of a death benefit and how much you pay are extremely
complex.
·
* Note. There are more than 2,000 companies
selling life insurance in this country. Some are very good, financially solid
companies; others are not so sound. A company's financial strength is vitally
important to you because, hopefully, no one is going to collect on your life
insurance for a long time.
·
You
want to make sure your life insurer will be around for the long haul. How do
you do this? You can consult a seasoned insurance professional, which is
probably your best bet, or you can look at how various independent
organizations "rate" the life insurers you are considering. Ratings
are like school grades, A+, A, A-, B+, etc. In general, it's wise to stick with
companies that are rated A or better by most rating organizations.
Many Purposes for
Life Insurance
·
Life
insurance is far more than just a decision of how much to buy. Depending on
your financial situation, life insurance can be used for a variety of purposes,
such as:
·
estate
planning
·
accumulating
cash
·
transferring
wealth
·
achieving
estate tax liquidity.
·
Life
insurance is like auto insurance in that you can buy a lot of it or not very
much of it. Life insurance differs from auto insurance in that, depending on
the type of policy you buy, you can pay a lot or a little for basically the
same death benefit. Keep in mind, though, that the younger and healthier you
are, the less you will pay for coverage. Life insurers like to have their
policyholders around for a long, long time.
·
*
Tip. So how much life
insurance do you need? It depends. One common benchmark says your death
benefit should be about six to eight times your annual earnings, but there are
a variety of factors to consider:
·
Other
income sources.
·
The
size of your family. Whether your spouse works and his or her earning capacity
now and in the future. The number of people who are financially dependent on
you and for how long. The death benefits your family will receive from Social
Security and any life insurance plan through your employer. And any special
needs such as mortgages, college education funds and estate planning.
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