Buying Life Insurance

Posted by on Sep 25, 2009 in Learning Center | 0 comments

Buying Life Insurance

When thinking about buying life insurance, there are three main factors to consider.

First, people need to accurately determine how much coverage is needed.  This is the starting point.  Generally, more coverage is needed for younger families in order to replace income and create nest eggs.   Contrastly,  the older people and families become,  there seems to be more assets and less debt, thus reducing the need for as much coverage.

The second important factor is understanding what products are suitable for your particular situation and budget.  Term life insurance is the most common and affordable.  It also is the most versatile.  It is used for everything from protecting minor children and widows, to key man insurance that is owned by small business owners.

Last, it is critical to be familiar with the  financial strength and credit ratings of your life insurance company.  You are depending on the company to step in and be there financially for your loved ones if you are gone.  You need to feel comfortable that they will be there in ten to thirty years or more.   Learn more about life insurance financial ratings.

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