What are the different kinds of life insurance you can buy and what are the differences between them???
Also, what kind of insurance should a 30 year old married father of one buy???
2006-09-11 05:01:50 · 12 answers · asked by Anonymous in Business & Finance ➔ Insurance
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After that, my recommandation is get a 30 year term. Financial experts say you should get at least 10 times your gross income worth of coverage. At the same time, save about 10-15% of your income into a qualified retirement account.
2006-09-13 19:55:42 · answer #1 · answered by Anonymous · 2⤊ 0⤋
I agree with the "buy term" advice. Whole Life, Universal Life and other cash value insurance products are rarely appropriate and then only as part of a larger plan which would be laid out by an estate attorney or fee-based financial planner who has lots of experience and can show the tax strategy involved. Unless you are worth at least a million, I doubt you need anything but term.
As far as how much you need, think of it this way -- You need enough to replace your income so your loved ones won't suffer financially on top of emotionally should you pass away. Consider the money will be put into some "safe" investment(s) such as highly rated municipal and corporate bonds or CDs.
Since there are expenses like transportation to and from work and retirement accoutns involved with your current income, you might not need to replace ALL your income. On the other hand, make sure to account for things that you do that will need to be hired out -- maybe auto repair or gardening.
Once you know how much you need to replace, plot it out on a spreadsheet, and plug in a benefit amount to see if it would take care of the needs. If you feel you wife could be self-sufficient without you, but need to provide for your child's needs, calculate through school years. The closer you are to the end of his or her school, the less insurance you need.
Make sure to account for your wife inheriting your retirement and/or social security (but don't place too much credence on a government benefit.)
Since term insurance is pretty cheap, you will find that you probably need more than you thought but that you can shop around and find a good price on it if you buy term.
2006-09-11 19:04:05 · answer #2 · answered by JoeFunSmith 2 · 0⤊ 1⤋
There are two main types of life insurance:
1. Whole life insurance is a plan of insurance for life, with premiums payable for a person's entire life.
2. Term life insurance, provides coverage for a specific period of time, usually from one to thirty years. Term policies provide a death benefit only if the insured dies during the term.
If you want a life insurance quote go to http://www.2insure4less.com/?s=blog... . Just fill out an insurance quote request form and get many quotes from different providers.
2006-09-13 19:01:59 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You need the most coverage you can get. That means a "term" policy.
You get the most bang for the buck, but there is no residual value and you will have to find a new policy at the end of the term.
There are 10 and 20 year fixed term polices available. Get one from a highly ranked (AA or better) life insurer.
2006-09-11 13:40:51 · answer #4 · answered by jbowler 3 · 0⤊ 0⤋
Go for straight term life. Do not lef an insurance salesman rope you into getting whole, or some other "cash back" policy. They sell those as investments, when they really aren't investments. If you yourself invest the cost difference between term life, and whole/cash back, you'd make more money than the cash back amount. A life insurance policy is simply to ensure that your family is taken care of in the event of your untimely death. It's not an investment. Make sense?
2006-09-11 12:09:27 · answer #5 · answered by sassybree1979 5 · 0⤊ 1⤋
ABSOLUTLEY agree with sassy ( * applaudes * ) You get a term life policy. You figure how much you will need for you family to live for many years without you if you were to die NOW.
Figure how much your spouse will need annually for the rest of her life if your spouse does nothing to support herself , such as : she needs $50,000 a year to pay the bills and live comfortably. Now double that number and add a zero = $1,000,000 should be the amount of the term life insurance policy. sound high ? well then the spouse will need to get out and get a job or else lower the annual amount needed to live. : )
This simple calculation works for finding out how much you need to have saved for retirement years too ! Good Luck and ONLY choose a term life policy!!!
2006-09-11 19:15:57 · answer #6 · answered by Kitty 6 · 0⤊ 0⤋
You should examine your life style at the moment, taking everything into account (Pension, Savings, existing Life Cover, etc).
First priority is to cover your life, so that your income is replaces should you die. You need to examine how much of a lump sum your family will need to replace your income (making sure you index-link the amount so your family will be protected against inflation)
Secondly, look into Permanent Health Insurance. This will replace your income should you become incapacitated.
Also look at pension - build up a fund for your retirement
2006-09-11 13:32:00 · answer #7 · answered by Monty Burns 2 · 0⤊ 0⤋
Did you forget MPT, Bright Future...Mortgage Protection Term? Sometimes this is the most important kind of "life" insurance to have, because it pays off the mortgage on the home.
2006-09-12 01:30:13 · answer #8 · answered by 420Linda 4 · 0⤊ 0⤋
you should ask a life insurance guy about it... be careful not to fall for everything he's telling you.
2006-09-11 12:08:59 · answer #9 · answered by A K 2 · 0⤊ 0⤋
I got online advice
2006-09-13 08:39:40 · answer #10 · answered by Anonymous · 0⤊ 0⤋