Halaman
Selanjutnya :
Answers To Life Insurance Questions
Why should I get life insurance?
In short, life insurance provides your family with protection in case something should happen to you. If you pass away without any insurance, it can be difficult for your family to survive without your income. Life insurance works to replace your income should you die. The policy will provide proceeds to your beneficiary after you pass away. Life insurance is recommended for people of all economic classes. Even for the wealthy, insurance can help offset taxes and fees.
How is this different from annuities?
Annuities are designed to protect you while you live. This insurance is designed to protect your family after you die. An annuity is a deal between you and an insurance company in which you receive a monthly payment from the insurance company starting in a certain date. Those payments continue for the remainder of your life. The insurance company will invest your money and pay you an agreed upon sum on a monthly basis.
Should I have a will?
It is extremely important to have a will. This is true even if your spouse has one. Essentially, a will gives you control over what happens to your estate after you pass away. You can determine what happens to all of your money and possessions. If you die without a will, the court will determine how your estate is distributed. Wills also prevent you or your spouse from having tax complications. Wills can be modified at any time.
What happens to my money if I die early?
Basically, the executor of your will is responsible for managing all of your money when you die.
How much insurance do I need?
Remember, life insurance works to replace your income so that your family can remain comfortable. Life insurance needs will vary for every individual. They will also vary as different circumstances in your life unfold. In general, it is a good idea to have insurance that is equal to five to ten times the amount of your annual income. When thinking about how much insurance you need, think about all of the different factors in your life.
Is there a minimum amount needed?
There isn't a universal number that works for everyone. However, there are several things you should consider when thinking about the minimum amount of insurance. First, figure out your monthly expenses. Count everything from bills to car payments to groceries. Then, factor in all of your secured and unsecured debts. Lastly, consider future expenses such as college educations, weddings, home repairs, and vacations. This should give you an idea of what you need. Basically, the minimum amount of life insurance should cover all of your needs and goals.
Should I get term or permanent insurance?
There are two major types of insurance. Term life insurance is designed for short term needs. In many cases, people with term policies will protect their families until their children are able to support themselves. Term insurance policies will expire in a certain time frame, but they can be renewed. However, the rates can change. With permanent policies, you have protection on a permanent basis. The rate will always be the same and you do not have to renew. The kind you should get will depend on the needs of your family. Term life insurance is cheaper, but it won't last as long.
What is a living benefit?
Basically, this is the term that describes a portion of your insurance policy being paid before you die. Usually, a person is only eligible for this if they have a terminal illness. They can receive up to 50% of their total amount while they are still living.
Can I name anyone as my beneficiary?
Yes, you can name anyone. In most cases you will choose a spouse, child, or close relative. Basically, you want to name the person who is most affected by your finances.
What do I need to buy insurance?
In order to buy life insurance, you need to know how much you want. After that, you fill out an application and have a medical exam. The initial payment is also required.
How much is this?
Payments are determined by how much insurance you need, your age, your general health, and your gender. In general, a good insurance policy will cost you between $10 and $75 a month.