What do I need to know before I start looking for Cheap Term Life Insurance?
Harry
Plano,TX.
Harry,
The first step in term life insurance planning is to analyze your life insurance needs. Meaning the economic needs of dependents left behind.
Before purchasing a term life insurance policy, consider your financial situation and the standard of living you want to maintain for your dependents or survivors. For example, who will be responsible for your final medical bills and funeral costs? Would your family have to relocate or otherwise change their standard of living after losing your income? The assumption of immediate death is necessary to determine the current life insurance needs for a family or individual. Add in the longer term financial needs of the remaining family members, such as: children expenses, income for the surviving spouse, mortgage and other debt payoffs, college education funds and an additional emergency fund. Because life insurance needs change over time, your term life insurance amount should be reevaluated periodically. We recommend a review at least once every five years or whenever you experience a major life event such as a change in income or assets, marriage, divorce, the birth or adoption of a child, or a major purchase such as a house or business.
In theory, you should have a declining need for life insurance as you age because fewer people remain dependent upon you for income support. Exceptions would be protecting a business entity or paying taxes on a large estate for heirs. If the purpose of buying life insurance is to pay estate taxes, then you’ll need permanent life insurance, which is in-force as long as you live and pay premiums.
Great Question.