Insurance For Less Affordable Life Insurance
Life insurance can fulfill a variety of needs, depending on what stage of life you're in. If you have others depending on you for support, you might want life insurance to help them cover expenses and meet future needs. Your beneficiaries can use the death benefit to take the place of your salary and pay for expenses such as day care and college tuition. Because death benefits are usually tax-free, they can be used as a quick source of cash to pay estate taxes and preserve the inheritance of future generations.
In the shorter-term, people often choose to buy life insurance to cover debts such as mortgages and car loans. In addition, life insurance can help pay for expenses at the time of death, such as medical bills and burial costs. Even if you have no dependents now, you can lock in lower premium rates for permanent life insurance by buying a policy while you're young.
A good rule of thumb is to buy life insurance equivalent to five to eight times your annual gross income. You should also consider individual factors such as income potential, ordinary expenses, extraordinary expenses, and federal estate taxes. Premium rates are generally determined by age -- the younger you are when you buy your policy, the lower your rates will be.
Difference Between Term And Permanent Life Insurance
There are two main types of life insurance: term and permanent.
What Kind Of Life Insurance Is Right for You
Term life insurance is most appropriate for