Life Insurance Policy
Filed under: Family Financial, Family Life Insurance, Family Tips, insurance policy, life insurance
How to Choose an Appropriate Life Insurance Policy
Best Life Insurance Policy
Life insurance has been recognized as one of the basic step to achieve financial security. First, what is the purpose for you to get life insurance?
By answering this first question, you will have a good idea of what type of life insurance policy you need. If your answer is yes for temporary need, term insurance should be your choice. If there is no definable time when you need the coverage till, you should consider permanent insurance.
Second, how much coverage you will need?
“The more, the better“…only if you don’t mind spending extra money on premium. Now, you can easily answer this question based on the answers for the previous questions. For example, if covering the mortgage is your main purpose, you might need term insurance for 25 years, depending how long it will take to pay off the mortgage; or if you want to protect your child, then 20 years or 25 years will be a good benchmark considering of their age; of course, if for estate purpose, you will need permanent insurance.
Paying for life insurance is a long term commitment. The premium is decided by the age, gender, heath condition, death benefit amount and the type of insurance policies.
After calculation, she needs $1 million dollar coverage for 20 years, and $200,000 coverage permanently.
Solution 1: She takes $1 million permanent life insurance; the premium is about $350 monthly minimum.
The recommended solution: take $200,000 permanent policy with extra $800,000 term for 20 years; the premium will be about $150 monthly.
Article Source: http://EzineArticles.com/?expert=Jennifer_Bie-Purewal
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