Life Insurance
GETTING STARTED
As you prepare to buy a life insurance policy, evaluate your ongoing and future financial needs and review the products. To begin, ask yourself some basic questions like:
Why do I need to buy life insurance?
If someone depends on you financially, the likelihood is that you need life insurance. Life insurance provides cash to your family after you die. The money your beneficiary receives (the death benefit) can be an important financial resource. It can help cover daily living expenses, pay the mortgage and other outstanding loans, fund tuition, and ensure that your family is not
burdened with debt. Having a life insurance policy could mean your spouse or children wouldn’t have to sell assets to pay bills or taxes. Another advantage is that beneficiaries won’t have to pay federal income taxes on the money they receive.
How much life insurance do I need?
Everyone’s needs are different. A life insurance agent or financial advisor can help you determine what level of protection is right for you and your family based on your financial responsibilities and sources of income. There are online calculators that also can help you; however, sitting down with an insurance professional to review your financial needs can give you a more personalized view of your needs.
“The Most Important Things
KEY POINT: Beneficiaries won’t have to pay federal income taxes on themoney they receive from a life insurance policy.
In general, deciding how much life insurance you need means deducting the total income that would be lost upon your death from the total sum of your family’s ongoing financial needs. Consider ongoing expenses (day care, tuition, mortgage, or retirement) and immediate expenses (medical bills, burial costs, and estate taxes). Your family also may need money to pay for a move or the costs of looking for a job. While there is no substitute for evaluating needs based on your own financial information, some experts suggest that if you own a life insurance policy it should pay a benefit equal to seven to 10 times your annual income. Your need could be higher or lower depending on your situation.
TYPES OF LIFE INSURANCE
What are the different types of insurance?
There are two basic types of life insurance: permanent and term. Permanent insurance pays your beneficiary whenever you may die; term insurance pays your beneficiary if you die during a specific period of time.
You can trust the experts at SoCal General Insurance Agency to provide the highest quality
customer service and a FREE quote prepared just for you on a wide variety of life insurance plans. Contact us today at 888-241-8316 or go to: www.scgia.net and we’ll be happy to answer any questions you have and take care of all your insurance needs.
The Bottom Line
As with all insurance, choose your life insurance wisely, after all you’re protecting the most valuable assets you have – you, your family and everything you’ve worked so hard for! So insure what matters the most and enjoy the confidence and peace of mind that comes from being prepared.
|
