Do I Really Need Life Insurance?
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Think about your dependents.
The main reason to buy life insurance is to support the people who depend on you after your death. Therefore, if you do not have any dependents, you may not need a life insurance policy. Does anyone heavily depend on you, and would that dependent be financially burdened without your income.This life insurance beneficiary could be your spouse, your child, multiple children, a trustee, legal guardian, a charity that you support, etc... If someone is coming to mind, you probably need to invest in a policy for his or her protection.
Understand the different types of life insurance.
There are two main types of life insurance: term life insurance and whole life insurance, also sometimes called permanent life insurance.
Term Life is for a specific amount of time. For example, you may know that your children will no longer depend on you by the time they are 30 years old. If this is the case, you may want to look into getting a term policy that expires when your youngest child reaches that age. Term Life is the easiest and cheapest life insurance to attain, but becomes more expensive as you get older, especially after age 50.
Whole life insurance is more expensive, but it covers you from the start of your policy until you pass away. There are several subcategories of whole life: traditional whole life insurance, universal life insurance, variable life insurance, and variable universal life insurance. It is a bit more difficult to get whole life insurance, because you typically must qualify with a medical exam.
Know how much you need.
Deciding what amount of life insurance will suit your needs can be difficult. While everyone’s needs are different, there are resources you can use to determine an appropriate amount for your primary beneficiary and any secondary beneficiaries. There is an online life insurance calculator you can use. A faster but perhaps less precise way is to multiply your annual salary by eight. You can always call an insurance agent who can advise you on the matter. Call an Infinity agent at 1-800-INFINITY.
It is scary to think about leaving your loved ones behind. If you think they will need monetary assistance for their support or for your final expenses, look into a policy that will fit that bill. Get peace of mind with a life insurance policy.