Insurance Term Life
What to Look For in a Term Life Insurance Policy
Term Life Insurance Whole Life
Get term insurance in place as soon as possible.
Having the right amountof insurance in place gives your family the ability to grieve with the peace of mind that they will be able to keep your home and feed the family.
So, how much insurance should you have in place? A good rule of thumb is ten times your annual income. For example, if you make $50,000 per year, you should have about $500,000 of term life insurance on yourself. If your family then invests the money into a good growth stock mutual fund with a long track record, they could pull eight to ten percent of the money out of the mutual fund to cover your lost income. If you are deeply in debt, you may want to increase this amount in order to pay off the debts upon your death and still allow them to invest ten times your income. There are other types of life insurance, but term insurance is by far the best deal. A whole life policy will cost you as much as ten times as much as term insurance and you will have a far lower level of coverage. The only thing to remember is that term insurance is coverage for a fixed “term,” or length of time, and at that point you will need to renew or lose the insurance. If you have a twenty year term policy, and you consistently invest $100 a month in a good mutual fund averaging twelve percent per year, you will have nearly $100,000 in the mutual fund when your term comes due.
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