Whole Life Insurance Tips
A few good whole life insurance tips could help you to protect you and your family's financial well being.
Without the right amount of life insurance, your family could be devastated should something happen to you.
According to one survey, 22 percent of American families admit that if something happened to one spouse, their family would suffer financial devastation by the loss of income.
Yet, with effective life insurance, most of these risks are avoidable.
The following are a few whole life insurance tips to help you to purchase the right insurance protection for your family.
Know Why You Need It
Ultimately, one of the most important whole life insurance tips is that you need to know why you need this form of insurance.
Whole life insurance will cover you for your entire lifetime.
At different stages of your life, that insurance will help to provide coverage for your family. As a new family with a hefty mortgage, having this coverage would help your family to remain in their home.
Later in life, the policy is an excellent way to leave money to one or more of your heirs. Or - supplement your retirement income.
Look at your life and determine why you need this type of insurance protection.
The Amount Of Coverage
Consider the amount of coverage you need.
Your heirs will receive a set amount of money at the time of your death. The amount of that payment, called a death benefit, is dependent on the amount of coverage you purchase now.
It is often a recommendation that your coverage be several times your annual salary. For example, if you make $50,000 a year, and wish to provide your family with 10 years of funds, your policy should be at least $500,000.
Some agents recommend seven years of salary value while others recommend more. This, too, is a personal decision.
Understand What Whole Life Offers
Finally, take the time to read a few more whole life insurance tips. Consider your situation in each of these.
- Do have a mortgage? Whole life insurance benefits may pay off mortgages and pay other outstanding debts.
- Do you have enough funds for retirement? Cash values on these insurance policies may be in use to supplement retirement income.
- Do you want to give to charity when you die? Whole life policy benefits may pay charities at the time of your death, on your behalf.
- Do you have heirs you want to leave something behind for? Name them as your heir or beneficiary.
These tips can get you to start thinking about what you would like this policy to offer to your family or your other beneficiaries. Because it is a long-term investment, take time to make this decision.
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