Life insurance is a way of protecting your family or your loved ones in the event thatyou pass away.
And just as an example let’s say I’m married and I have two little kids. My wife is at home with the kids right now, raising them, and if something happens tome there is a huge financial impact to my family. I have a big need for life insurance. So what life insurance really is I’m paying an insurance company each year a certain amount 65 IKEA Small Living Room Ideas of money and in the event that I pass away my beneficiaries, my loved ones, my familymembers, will receive a lump sum of money? That’s how life insurance works. And there are two main types of life insurance. Term life insurance, which protects you for a certainperiod of time, and the way that works is, you pay a small amount of money let’s sayit’s for a twenty year period of time, if I die, my beneficiaries receive the money.
If I don’t die that’s it. That money is gone. I paid for protection and didn’t need it. That’s what term life insurance is. There is also permanent life insurance which tends 25 Tiny Bedroom Decor ideas to be a lot more expensive, but permanent life insurance protects my family, in theevent that I die, for the rest of my life, no matter when I die that policy is goingto pay. The challenge is, that it becomes a lot more expensive, in a lot of cases, tooexpensive for the average person to buy. So when you’re looking and reviewing your life insurance needs, the first question to ask,”Is somebody else financially dependent onme?” if the answer to that is yes, then yes you need life insurance.
The next questionyou have to ask is “How much life insurance do I need?” Do I need one hundred thousanddollars? Do I need five hundred thousand? It depends on your unique situation. So doI need life insurance yes or no? If I do need it how much do I need? Once I determine howmuch I need, do I have a temporary need, do I need a term policy or a permanent need,and I should go with a permanent cash value policy. And there are a lot of other benefitsand details about life insurance, but I think if you start with those three fundamentalquestions, do I need it?
How much do I need? And what type is right for my situation? It’sgoing to get you in the right ball park.