If you were to be laid off would your family still be alright financially? If they would not be financially safe with you losing your, do think they would be financially secure if you were dead? Whether it is a spouse, your children, or any other loved ones that depend on your financial support, you need to buy life insurance.
Even the smallest policy for term life is very affordable. One policy we have runs $35 a month for a $100,000 policy. Policies for a $1,000,000 policy can be as cheap as $125 a month for a healthy woman under 45 years old.
For most people, term life insurance is all they need.
What is term insurance? Term life insurance is a policy for a specific period of time, hence why it is called term. If you should die during the term, your beneficiaries would receive the payout from the insurer. Life insurance doesn't need to be for "life." In most cases people need life insurance while their children are young and are dependant on the financial security they provide. Once they grow up and become financially dependant, they should not need to rely on you. You may also need life insurance if you are still working on other forms of assets that could provide income for your loved ones should you pass on. If you don't have equity in your home or don't have a significant amount in your retirement
or saving accounts you probably need insurance. Once you have enough assets to provide financial security for your dependants, you can probably do with out life insurance.
Where can you buy term life insurance? You can shop on line at selectquote.com and accuquote.com. These folks specialize with working with individuals who are in need of term insurance. You will have to fill out an in depth worksheet of your income and assets, including your debt and expenses. The amount of insurance you need can depend on many factors. My wife and I personally have 6 times our annual salaries. Some financial advisers will suggest as much as 20 times your annual salary. Although, generally most insurance agent will recommend 10 times your annual salary.
So how much insurance should you have? The best way to decide is, what amount gives you peace of mind? You really shouldn't be putting a price tag on your families financial security.
[This post is written and copyrighted by Financial Elite (http://financialelite.blogspot.com/ ).]
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