Life Insurance ?Life insurance provides cash for your family after you die. The money your dependents will receive - the "death benefit" - is an important financial resource. It can help pay the mortgage, run the household and ensure that your dependents aren't burdened with debt.The proceeds from a policy could mean that they won't have to sell assets to pay outstanding bills or taxes. Importantly, there is no federal income tax on the benefits.
Click here now for instant affordable term life insurance quotes from top life insurance companies! Life insurance questions can be complex. Will your family need this support after you are gone? What sort of policy should you buy? Who should you buy it from? Here are some questions and answers to help you make the decisions.
How Much Life Insurance Do I Need? Evaluating your family's needs is the first step in purchasing a policy. Gather all your personal financial information and estimate how much money your family will need after you're gone. Include ongoing expenses such as day care, tuition or retirement and immediate expenses at the time of death like medical bills, burial costs, and estate taxes. Your family also may need funds to help them readjust ... perhaps to finance a move or pay expenses while job hunting.
It boils down to this: life insurance provides financial protection. If protection is not your primary goal, you should consider other financial products. While there's no substitute for careful evaluation of how much life insurance your own individual family will need, one rule of thumb is to buy an amount equal to five to seven times your annual gross income. Review your policy periodically or when your situation changes to be sure your coverage is adequate.
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