LIFE INSURANCE

Basics Of Life Insurance 

The purchase of Life Insurance is one of the most important decision that one makes in his/her lifetime.When one doesn't care about owning a Life Insurance he/she is making a big mistake.

When one doesn't have a Life Insurance

* Family Suffers

* Businesses Fail

* Dreams get derailed

The 3 Key Questions about Life Insurance is ...

1) Do i need Life Insurance ?

2) How much do i need ?

3) What kind should i buy ?

Why Do I Need Life Insurance ? 

* One needs life insurance when someone is financially dependent on them.

* Life Insurance provides support for spouse,children and aging parents.

* Life Insurance protects business,business partners and employees.

How Much Do I Need ? 

* Some experts recommends that 5 or 20 times the annual income would be appropriate.

Three Types Of Expenses 

1) Immediate Expenses

* Funeral Expenses.

* Uncovered medical costs.

* Mortgage and other debt taxes.

* Estate settlement costs.

2) Ongoing Expenses

* Food

* Housing

* Utilities

* Transportation

* Health Care

* Clothing

* Insurance

3) Future Expenses 

* College

* Retirement

What kind of Life Insurance should i buy ? 

Type depends on  

* How long coverage is needed

* Your budget

 Types Of Insurance

1) Term Insurance

2) Permanent Insurance

Term Insurance 

Pros 

* Good for temporary needs.

* Affordable

Cons 

* Cost increases with age

* Must re-qualify when term expires

Permanent Insurance 

Pros 

* Lifelong coverage

* Premiums are often level for life

* Accumulates cash value.

Cons 

* More costly than term when initially purchased.

Business Uses Of Life Insurance 

* Fund a buy-sell agreement

* Buy time to replace an owner or key employee

* Equalize an inheritance

*  Pay estate taxes