Monday, August 13, 2007

Insurance Review

Buying life insurance is buying the future financial security for your family that only life insurance can provide. Life insurance has many purposes.

It helps ensure that, when you die, your dependents will have the financial resources needed to protect their home and the income needed to run a household.

Life insurance also can be used to help with other financial goals, such as funding retirement or education expenses. But, remember that the main purpose of life insurance is financial protection.

The best way to make an informed decision about buying life insurance is to become familiar with the basics.

Why do you need life insurance? Life insurance is an essential part of financial planning.

How much life insurance do you need? There are a number of factors to consider when determining how much protection you should have.

What are immediate needs at the time of death, such as medical expenses, burial costs and estate taxes. There are ongoing financial needs, such as monthly bills and expenses, day-care costs, college tuition or retirement. One rule of thumb is to buy life insurance that is equal to five to seven times your annual gross income.

What is term insurance? Term insurance provides protection for a specific period of time. It pays a benefit only if you die during the term.

What is permanent insurance? Permanent insurance provides lifelong protection and is known by a variety of names.

Many policies have features known as 'cash value' or 'cash surrender value'.

These are just some of the basics you should learn about and decide which insurance plan is best for you and your familt. We suggest that you start with xx for more information.

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