Equote - David Livingston

Purchasing a life insurance policy may be one of the most important decisions you ever make in financially however it's a decision that most of us would put off until something happens that hits us close to home. This is really not too surprising since everybody has a built-in mechanism that avoids thinking about death. However, this kind of procrastination can be devastating to a family or business.  

Three basic questions that must be answered and they have to be asked and answered at the right sequence or else the answers will all be wrong are follows. (1) Do I need life insurance? (2) How much insurance coverage do I need? (3) What kind of life insurance should I buy? 

Do I Need Life Insurance ? If a person will suffer financially when you die then you need life insurance to answer the first question of why you need life insurance, the quick and easy answer. Perhaps your aging parents, or maybe even your business partner or employees the person who will suffer when you die might be your family. We will not get the chance to face the reality that they will face once we are gone we might be inclined to say that everything will be OK when we die but it is important to remember that when we do. On the burden of settling all your financial obligations your family or the people you will leave behind might carry. By comparing life insurance quotes and by eventually deciding to get a life insurance policy it is therefore important that you try to make arrangements to protect them from such a situation.  

How Much Insurance Coverage do I need? From five to twenty times your annual income a lot of experts recommend a rule of thumb that states that the amount of life insurance coverage should run anywhere. The rule of thumb is not actually very helpful to follow however, with that large spread. So how do you determine the amount of coverage that you will need? What is called a financial needs analysis the best way to figure this out is to have an insurance professional conduct. In estimating the needs of your family members after you are gone this is how it will work, the analyst will gather all your personal financial information that he/she will need. As well as their future needs these needs will include all the financial obligations that you have left unsettled. There are three types of expenses that will be factored in when the analyst will compute for the amount of coverage namely: (1) the immediate expenses which covers funeral expenses and uncovered medical bills, (2) ongoing expenses which includes all the money that your family will need to live on, and (3) future expenses which includes all the money needed to fund future plans for your family such as college education for the kids. 

What Kind of Life Insurance to Buy? When you browse through the different websites on life insurance online, you will encounter either a term life insurance or a universal life insurance. These are the two most common kinds of life insurance available. Term life is probably the oldest type of insurance there is and there are a lot of term life insurance quotes that you can choose from. Cheap term life insurance quotes that you will find on the internet or given to you by an insurance agent will offer you life coverage for a longer term period but you will only have to pay a relatively low and more affordable monthly premium rate. 

Universal life insurance on the other hand will cover you with insurance from the time that you purchase a policy until the time that you die. Many say that it is more advantageous to get a universal life insurance policy because of its investment option but if you have an honest insurance agent, you can deny the investment option and avail of a Term 100 policy which will give you a fixed premium rate for the rest of your life. This means that if you start with a $50 per month rate at start of your policy then you will pay $50 per month for the rest of your life so that you will be covered by insurance.