Some
people mistakenly believe that buying life insurance-- that
is, planning for their death – is bad luck and will bring misfortune to their
lives. Those feelings of denial bring about inaction and results in leaving
many people in this country uninsured.
The
fact is that life insurance is not about death, it's really
about life and enjoying the peace of mind that term life insurance
protection can bring. For the typical male head of a household, those who
depend on your paycheck: your spouse, children and quite possibly, your
parents, the loss of your income can have a dramatic effect on their way of
life. If you die prematurely, term life insurance can provide ongoing income to
your dependents, until they are able to live comfortably without it. It can
also provide emergency support for legal, medical and funeral costs, should family
savings not be sufficient to cover them.
Who needs life
insurance?
The
purpose of life insurance is to
cover any unexpected costs that a family unit cannot afford or that would put
the family's financial situation in peril.
If
you're the sole breadwinner for a large family, with little savings, then term
life insurance is essential. Once basic items such as shelter and food are
covered, life insurance should be next on your list of priorities.
What
would be the immediate impact on your family should you not be there to support
them tomorrow? Are they counting on your paycheck in the years ahead to cover
basic needs and future savings goals? Could they afford the funeral costs? Who
would pay the home mortgage? Would your family be able to survive economically
without you?
If
you fit this profile and don't have life insurance, you might want to consider
it and perhaps discuss it with your family.
How much
coverage?
If
you have finally decided to get insurance another important issue is to figure
out how much insurance you need and for how long. The easiest way to approach
this is to ask yourself: if you're the primary caregiver to dependents, what
will it cost to replace you with a paid provider, and for how long?
The
most basic way to calculate your insurance needs is to replace your annual
income until you retire. Start with your current annual before-tax salary, and
estimate how many years left until retirement. Here is a great tool to help you
figure it out, our online life insurance calculator, Life
Insurance Calculator
Do you need
professional advice?
It
used to be that you had to rely on the advice of an insurance agent (passed down
from generation to generation) to buy life insurance but the 21 st century has changed all that. Now you can do your own
research online and learn about the type of insurance that is right for you and
your family. When it comes to purchasing simple, straightforward term life
insurance, most educated consumers can choose for themselves and will probably
end up paying less in the long run. But if you think you have more complex
financial issues, you should invest the time to discuss your needs with a certified
financial planner.
Call
Priyanka on 9881209069 or mail priyanka.khg@gmail.com