President | Founder, CLM Insurance Group, Delray Beach, FL
The most important factor in life insurance is death benefit and providing enough when you're gone. Life insurance can also have savings and investment attributes as well. If you're looking to provide a specific amount of money and it's only needed for a certain time period, then term insurance with a precise death benefit is most important to think about.
If you are a conservative, long-term investor that wants to build cash value in a policy and you're need for death benefit isn't great then a permanent or contributing policy is important to think about when purchasing coverage.
Regardless o what type or how much you apply for...make sure to complete a thorough needs analysis with an insurance broker.
Life insurance can solve a lot of different issues. The most obvious would be to replace your income and repay debt in case of your sudden demise to protect your loved ones. Be sure to calculate all of your debt and future debt if you would like to educate small children. Next calculate at least ten times your income for your beneficiary to invest. This should in most cases replace your income by annuitizing the gains to be paid to your loved ones on an ongoing basis.
The next thing to consider with life insurance is your critical needs and retirement needs. There are plenty of different types of policies and riders that can help with retirement free income, lump sum cash in case of a critical illness such as heart attack, stroke or cancer. There are even riders to help pay for a long term care situation.
Because there are so many options with life insurance, I recommend finding an experienced independent life insurance broker you are comfortable with to help navigate these policies and options. A broker's services are free in most cases.
Great question! To make it really simple, think of four things: What do I want it to do? How long do I want it to last? How healthy am I? How much can I safely afford to spend? The answers to those four questions will give you a better idea of what to look for when shopping for your policy. For example: your answer to the first question is " I want it only to cover my funeral expenses". The answer to the second: " I'm 70, so until I need it." And the third: "I have some fairly serious health issues". and the fourth:"I only have a small amount I can spend". Now when you approach an agent you can better match a policy to what your needs are. Find a good agent that will help you find a policy that matches your need and budget. If you would like more information, please contact me, I'd be happy to help. Thanks for asking!
At LifeQuotes.com we like to have applicants articulate why they want life insurance to make sure that we recommend the right policy from among our 35 life insurers. Important questions to answer are: Why do I think I need life insurance? Who should get what if I die? Who are my current dependents? What is my current and future debt situation? By when will I have no dependents in my life that I am responsible for? What would my spouse do or live on if I died?
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If you are a conservative, long-term investor that wants to build cash value in a policy and you're need for death benefit isn't great then a permanent or contributing policy is important to think about when purchasing coverage.
Regardless o what type or how much you apply for...make sure to complete a thorough needs analysis with an insurance broker.
The next thing to consider with life insurance is your critical needs and retirement needs. There are plenty of different types of policies and riders that can help with retirement free income, lump sum cash in case of a critical illness such as heart attack, stroke or cancer. There are even riders to help pay for a long term care situation.
Because there are so many options with life insurance, I recommend finding an experienced independent life insurance broker you are comfortable with to help navigate these policies and options. A broker's services are free in most cases.