not so much about savings or investments plans, but just pure protection coverage.
2006-08-29 15:14:44 · 12 answers · asked by bugleboy 1 in Business & Finance ➔ Insurance
Well, do you want the "best" type of insurance? Are you worried about estimating the amount of coverage? Or both? I am assuming you mean life insurance. The best approach to take would be good old fashioned term insurance. You can purchase a 30-Year Term policy that guarantees the premium and death benefit for 30 years, which is normally long enough to carry most insureds through they working years. As far as how much . . . that's gets very subjective. However, you could simply take you annual income (assume $50,000) and do a time value of money calculation to calculate how much your survivors would need to replace your income. You may want to tack on some "extra" coverage for your survivor's immediate needs such as funeral, final medical bills, pay off debts, etc. This is the basics. Another level is to buy some amount of cash value life insurance (e.g., enough to cover immediate needs) and add on a LOT of term insurance coverage as a rider.
2006-08-29 15:23:30 · answer #1 · answered by Matthew V 1 · 0⤊ 0⤋
I am confused by your statement "just pure protection coverage"...I am assuming you mean liability protection, not life insurance. That being said I would talk with several different agents and compare the results and pick the policy that seems to be recommended the most. The reason I say this is because they are many good agents and many bad agents out there. If I did interpret your question correctly I would assume you are looking for a personal liability policy. You would want to find the policy with the broadest coverage and high limits.
2006-08-30 21:20:39 · answer #2 · answered by bbumple 2 · 0⤊ 0⤋
That question is hard to answer without knowing a few more details. Usually the magic number is your income times 3 for life insurance. As far as term or whole they both have there ups and downs. If your young go with a term policy (cheaper for more coverage) If your retired (then go with whole, rates never increase) and have no rental properties or anything that would need to be taken care of after you pass it is usually the cost of a funeral plus a few more for estate taxes and so on. Find an insurance agent, one that will sit down ask you a bunch of questions and asses your situation if you don't think they were thorough enough find another one. A good agent will ask you a bunch of questions before recomending anything. Hope that helps.
2006-08-30 00:01:43 · answer #3 · answered by cobra242003 1 · 1⤊ 0⤋
Talk to a professional who can sit down and help you analyze your needs - if it were ME, I'd call an agent, tell them, hey, I'm NOT going to buy from you, but I WILL take you out to lunch, to get your unbiased opinion on what would suit me best.
Assuming from the terms above, you're talking about life insurance - pure protection coverage is called Term life insurance. If you buy it, you want to make sure it's renewable & convertible, and buy at the longest term offered - usually 20 years.
2006-08-30 08:38:56 · answer #4 · answered by Anonymous 7 · 0⤊ 0⤋
First: compare several companies polices side
by side. Second: check their ratings with the A.M Best Company. Third: compare your total out of pocket expense in one given year before they pay at 100%. Always ask do they cover on or off the job injuries. Do they cover out of network. Never buy a plan that has a stop loss of 100,000. This means after the bill reaches 100,000 then they pay 100%. But only if you have bought the accelerated expense option. Believe it, there are companies out there that try and sell this plan. Hope this helps with your search. Always make sure you buy a major medical plan. THis way you are covered under the worse circumstances.
2006-08-30 00:21:27 · answer #5 · answered by cindy 1 · 0⤊ 0⤋
First thing I would do is ask agents lots of questions and see who will take the time to explain coverages and options. If they won't do that, move on to someone that will. I believe everyone should understand exactly what coverages they have and what's available.
2006-08-30 19:44:47 · answer #6 · answered by hummingbird 3 · 0⤊ 0⤋
Very good question!!! Might I suggest reading some of Suze Orman's books... especially "The Road to Wealth," in which she presents a list of questions to ask from any insurance provider. What an eye opener that book was for insurance, home buying, trusts and wills, and all areas of finance.
2006-08-29 22:32:00 · answer #7 · answered by Anonymous · 0⤊ 0⤋
If it is your income you're protecting (life insurance) than the guide at this site is great because it is NON-biased. Insurance agents have a natural conflict of interest because of how they are compensated. Give it a read, then move on...
2006-08-30 12:39:30 · answer #8 · answered by kcincon 3 · 0⤊ 0⤋
Do some serious looking around and compare all your needs and prices. Read the fine print before you sign anything.
2006-08-29 22:20:41 · answer #9 · answered by black jack 2 · 0⤊ 0⤋
You should have a nice agent that will tell you/guide you into what insurance you need to protect your assets.
2006-08-30 11:58:35 · answer #10 · answered by Anonymous · 0⤊ 1⤋