Life Insurance Quandary

We all know that at some point in our lives theliving, for a particular household, is not going to
prudent thing to do is to buy some life insurance.change very much because one of the
Some people have definite ideas as to the typebreadwinners is no longer there...unless that person
and amount necessary to fulfill their needs. Othersis very extravagant. If it costs $50,000 to live
find themselves in a decision making dilemma.now, for example it will cost close to that amount
These people don't know how much to buy orafter a spouse dies. We should therefore
what type...purchase sufficient life insurance to assure the
You may say the easiest way to go is to ask acontinuation of that persons income after death.
life insurance agent. If you know a reputable oneNow, what type of life insurance should we buy.
that sells for a highly rated company then go forTerm life insurance is a favored choice but there
it. If you don't then here are some guidelines thatare many term plans to choose from. Here is
you may find useful.what you do. Decide how long a period you will
Single Persons Insurance Needsneed the policy for and buy a level term policy
If you are single then the amount of life insurancethat will fit that tome period.
needed is whatever it will cost to pay off yourYour youngest child is age 12. S/he is expected
last expenses including funeral costs. I refer toto graduate by age 18 but you also have to
things like paying off outstanding debt that mayfigure in 4 years of college. You therefore need
leave a loved one holding the bag. Attorneys feesto buy a policy that would provide sufficient
and estate taxes should also be included.income until this child is age 22. You also should
Needs Of A Married Person With Childrenadd an amount which would cover the college
A married persons needs are a different matter,costs for all the children if you died. The same
especially if there are children involved. Bothconsideration goes for your spouse. A 10 year or
parents work, more often than not, in todays15 year term policy would take care of this
world. Both help with the maintenance of thesituation.
household. If either parent dies serious financialYou may also want to consider providing the life
problems could come into play. Regardless ofinsurance coverage for a longer period of time so
whether or not the income is coming in the billsthat tour spouse is also taken care of. In this
have to be met. The rent or mortgage has to becase you may want to purchase a 30 year term
paid, the survivors have to eat and they alsopolicy. You can convert it to a permanent plan
have to wear clothes. They will continue needing awithin a specific period of years, depending on the
car as well as sufficient funds to pay utility bills.company you are dealing. On the other hand, you
Every child today is involved in something. It couldmay choose to buy a permanent policy like whole
be some kind of sport or other extra curricularlife, universal life, variable universal life or variable
activities. All these things cost money.life policy which will give you the coverage from
What you need to think about is that the cost ofthe outset and continue for a longer period.