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Life Insurance Quandary

We all know that at some point in our lives
the prudent thing to do is to buy some lifeWhat you need to think about is that the cost
insurance. Some people have definite ideas asof living, for a particular household, is not
to the type and amount necessary to fulfillgoing to change very much because one of the
their needs. Others find themselves in abreadwinners is no longer there...unless that
decision making dilemma. These people don'tperson is very extravagant. If it costs
know  how  much  to  buy  or  what  type...$50,000 to live now, for example it will cost
close to that amount after a spouse dies. We
You may say the easiest way to go is to ask ashould therefore purchase sufficient life
life insurance agent. If you know a reputableinsurance to assure the continuation of that
one that sells for a highly rated companypersons  income  after  death.
then go for it. If you don't then here are
some  guidelines  that  you  may find useful.Now, what type of life insurance should we
buy. Term life insurance is a favored choice
Single  Persons  Insurance  Needsbut there are many term plans to choose from.
Here is what you do. Decide how long a period
If you are single then the amount of lifeyou will need the policy for and buy a level
insurance needed is whatever it will cost toterm  policy  that will fit that tome period.
pay off your last expenses including funeral
costs. I refer to things like paying offYour youngest child is age 12. S/he is
outstanding debt that may leave a loved oneexpected to graduate by age 18 but you also
holding the bag. Attorneys fees and estatehave to figure in 4 years of college. You
taxes  should  also  be  included.therefore need to buy a policy that would
provide sufficient income until this child is
Needs  Of  A  Married  Person  With  Childrenage 22. You also should add an amount which
would cover the college costs for all the
A married persons needs are a differentchildren if you died. The same consideration
matter, especially if there are childrengoes for your spouse. A 10 year or 15 year
involved. Both parents work, more often thanterm policy would take care of this
not, in todays world. Both help with thesituation.
maintenance of the household. If either
parent dies serious financial problems couldYou may also want to consider providing the
come into play. Regardless of whether or notlife insurance coverage for a longer period
the income is coming in the bills have to beof time so that tour spouse is also taken
met. The rent or mortgage has to be paid, thecare of. In this case you may want to
survivors have to eat and they also have topurchase a 30 year term policy. You can
wear clothes. They will continue needing aconvert it to a permanent plan within a
car as well as sufficient funds to payspecific period of years, depending on the
utility  bills.company you are dealing. On the other hand,
you may choose to buy a permanent policy like
Every child today is involved in something.whole life, universal life, variable
It could be some kind of sport or other extrauniversal life or variable life policy which
curricular activities. All these things costwill give you the coverage from the outset
money.and continue for a longer period.



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