November 20th, 2009 | 
Author:
Life Insurance is the best type of protection you can get for your family should something unfortunate happen to you. The consequences of not having any life insurance or not quite enough cover are massive, as it means your family could be left in a real predicament should you die. Many people out there don’t have any cover, insufficient cover or the wrong type to cover their needs.
When should i buy life insurance ? Many people ask me this question, the answer is right now. The younger you are the cheaper the insurance will be, this is based on a risk factor as the younger you are the less likely you are to die. In addition to this if you get your life insurance with guaranteed rates you will keep the same low premium through the term of the contract giving you total peace of mind at a relatively low price.
What will affect my life insurance ? When looking to buy life insurance you need to consider a number of other factors that will affect the insurance. If you smoke for example of have poor health or if you family has poor health this will all affect your final premium. The best thing you can do if you are unfortunate to suffer from any of these problems you should discuss these with your Life Insurance broker from the outset and they can advise you best.
I dont know how much life insurance I need how do I work this out ? The main thing you need to consider is to cover outstanding debts, this is the bare minimum you should look at is covering them. On top of this then you should look at how much househould income is missing should you not be contributing into this anymore and try and cover this too. At this stage you may be starting to consider a large sum assured, you then need to consider how much you can afford as a monthly payment, as the larger the sum assured the larger the premium. This is a balancing act so once again best discussing this your insurance broker for best advice.
The most common form of life insurance is term or level life insurance, this is cheap and relatively straight forward. You pay a set premium each month throughout the term of the policy and from the outset you work out the sum assured as discussed previously. Then in the event of your death a lump sum payment would be made, if you were to still be alive at the end of the policy or even if you stopped paying the monthly premiums then the policy would not payout and you would recieve nothing back from the policy.
Overall you need to do your homework, work out your sum assured and buy life insurance sooner rather than later as it will save you in the long run.
Mike Armstrong
http://www.articlesbase.com/insurance-articles/when-should-i-buy-life-insurance–93264.html
Posted in Life Insurance
When should a person get rid of their life insurance?
If they am retired and make enough to live on and have enough saved to live off it for say 6 to 7 years, should they still have a life insurance policy?
A person should never get rid of a life policy that they have been paying into. It’s not for you, but for who you leave behind, to pay for a funeral, pay off any bills or debts after your death. There’s no harm in keeping it but more harm in getting rid of it.
References :
YES EVERYONE SHOULD HAVE LIFE INSURANCE. TIL THE DAY THEY PASS AWAY. IT WILL HELP WITH THE BURIAL. AND YOUR FAMILY WON’T HAVE TO USE THEIR MONEY THAT THEY WORK SO HARD FOR.
References :
OK, you’re doing this backwards. When you get life insurance, you PICK which kind of life insurance you get, by FIRST determining what exactly you want that life insurance to do for you.
When it no longer meets that need, or when that need no longer exists, you have to reassess your situation, and determine, ok, what NOW do I want life insurance to do for me.
When there isn’t a product out there, to meet YOUR NEEDS, at an affordable price, well, then you don’t buy life insurance.
Your question does NOT show a need for something that life insurance can fulfill. It’s NOT a savings account!!!
References :
agent, 20+ years
Who is benefitting from the policy now?
If that need is no longer existent now or will not exist in 6-7 years, then you don’t need the coverage.
Depending on your age, you can look to sell your policy via a life settlement rather than just letting it lapse
References :
Experience
Your daily living expenses have nothing to do with the insurance coverage you have.
That is terrific that you have enough saved for & retirement coming in to satisfy your needs, but your insurance has a completely different function that does not have to do with that income. It is meant for your loved ones that have the responsibility of burrial & other expenses after death. In addition, if you have anyone else that relies on your income, then they will benefit from they insurance too since you will no longer have that coming in.
Lastly, life insurance is generally tax free & by passes probate for the beneficiary. Unlike money you have in a checking & savings account.
References :
If you are certain (100% certain) that you have enough savings to pay not only your current bills but bills you may have in the future – like medical bills, both from hospital care and more long-term care after and injury or illness, then you should CONSIDER getting rid of your life insurance. Chances are, however, when you do pass away, you will leave some bills behind unpaid. Your creditors will come after what is left in your estate to collect.
Go talk to a financial professional to discuss all your options.
Good Luck.
References :
This is hillarious. Most people’s opinions on life insurance are WAY out dated. First of all, you should ONLY buy term insurance. This is because no matter how much money you funnel into a cash value policy you will NEVER EVER get it back. In order to get it, they charge you interest, and if you don’t pay it back, they just reduce your face amount. If you die with cash value still in the policy, the company pockets it. If you dont believe me, read your policy. Only buy term.
The only reason to need insurance for your whole life is if you didnt plan on retireing in the first place. In other words, you can cancel your life insurance policy once you have enough cash saved to cover an untimely death.
"Whats wrong with your life insurance" Great book for those that dont believe me.
References :
Base on your scenario, of course not. They should be allocating more money toward retirement. If you still need life insurance when you retire, maybe you should get at least a $10,000 policy and at most a $20,000 policy.
Most people cancel their policy when their mortgage is paid off. There should be no reason why you still need life insurance at that time since no one is dependant on your income.
References :
http://obe231.blogspot.com