5 Interesting Life Insurance Facts You Should Consider Before Making a Purchase

Risks And Challenges Of Business LifeStill think that picking and buying the perfect life insurance policy is a real hassle? If so, now would be a good time to revise your opinion. Here are a few interesting facts about life insurance coverage that could influence your purchase.

1)      You Can Easily Estimate How Much Coverage You Actually Need

You don’t necessarily have to schedule an appointment with an experienced insurer to find out how much coverage you should actually purchase. According to BankRate, insurance company representatives advise you to opt for a policy covering 7 times your annual salary, to be able to meet the basic necessities of your family members who depend on your monthly income to make ends meet. Other specialists recommend policies that unlock larger amount of money (up to 20 times your annual salary), but the best thing that you can do is to shop around and identify the most generous offer in your price range.

Wondering how much is too much when it comes to monthly premiums? If so, note that there are 6 factors that should influence your purchase:

a)      The expected income of the potential beneficiary

b)      Future spending estimates that should always include non-routine expenses, like college costs, for instance

c)      The overall value of current debts

d)      Future pension or social security benefits

e)      Estimated costs triggered by the death of the potential beneficiary (funeral expenses, estate taxes and so on)

f)       Lifestyle changes implemented by the surviving relatives to cope with the new reality (moving into a smaller house, buying a cheaper, smaller car and so on)

If for some reason or another you can decide how much cash you should spend on your life policy, don’t hesitate to contact a lawyer and follow his expert advice. Misinformed purchases could impact your budget, without offering you the benefits that you are asking for. The LIMRA International’s Facts About Life 2007 indicates that more than 56% of all married couple with children are not satisfied with their current life insurance policy and consider it “inadequate”. This doesn’t have to be your story. With so many attractive alternatives at hand, finding a decently priced life insurance policy tailored to your unique requirements shouldn’t be a challenge.

2)      Men Are More Likely to Go the Extra Mile to Secure the Future of Their Loves Ones

Despite the fact that in most modern families both spouses have a source of income, men are more likely to invest their money in a life insurance policy to guarantee a better, brighter future for their relatives. According to recent statistics, 41% of the entire adult American population (almost 95 million individuals) lacks life insurance. The same source reveals the fact that 61% of all American men have some kind of life insurance policy, while only 57% of the female population is currently spending money to secure the prosperity of their family members.

3)      There Are at Least 3 Reasons Why You Need Some Kind of Life Insurance Coverage

According to insurance experts, there are at least 3 important reasons why you should consider opting for an excellent policy.

a)      To help your relatives preserve a decent, comfortable lifestyle after your death

b)      To cover the expenses triggered by your own death (funeral expenses and so on)

c)      To offer yourself and your family members the chance to profit from an extra source of income that could come in handy later in life

Obviously, the ideal policy gives you the opportunity to maintain the financial balance of your entire family for many years to come. There are two main categories of life insurance policies: term life insurance (addressing short-term monetary liabilities) and whole life insurance (addressing long-term monetary liabilities). When it comes to choosing the most adequate type of coverage, prospects should take 3 main factors into consideration: their needs, end goals and the purchaser’s financial possibilities.

4)      Buying Life Insurance Is Much Easier Than You May Think

You don’t need to be an insurance agent or a broker to evaluate your needs in an objective manner. These days, you have the chance to purchase a policy online, with just a few clicks. As a matter of fact, according to a report published by ING, the number of websites ensuring simple online purchases has increased dramatically over the past few years.

At the same time, if you don’t know how much coverage you actually need or how much money you can afford to spend on a policy, it is recommended to consult a local insurance agent. To get an insight into this matter, first of all count on Insurance Quote Depot to compare life insurance rates by zip code. Afterwards, feel free to contact an insurer. Note that some of the greatest professionals operating in this sector also provide expert guidance via computer or phone, so sometimes you don’t even need to get out of bed to identify the policy that would work best for you.

5)      Life Insurance Policies Are More Accessible Than Ever

In these difficult economic times, most people think twice before investing their money in things that do not bring them an immediate profit. Unfortunately, only a limited number of individuals actually make long-term plans and realize the fact that insurance policies allow them to cope with a plentitude of worst-case scenarios that could change their lives for good.

Life insurance gives you the certainty that the relatives who depend on your income to survive would manage to avoid stressful financial difficulties in your absence. This type of coverage is actually much more affordable than you may be inclined to think. If you are flirting with the idea of purchasing a basic policy you should know that term life insurance rates have witnessed a major decline. This is clearly the best time to spend your money on a great policy designed to offer you the highest level of protection. You can also keep your rates low by maintaining an active, healthy lifestyle and buying life insurance early.

Do everything in your power to safeguard your loves ones from financial difficulties that may arise in your absence. Find the best policy by surfing the Internet. Compare life insurance rates by zip code, spot the best deals and schedule an appointment with an insurer as soon as possible.

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