Life Insurance Basics
Life Insurance Basics
In these uncertain times your family needs peace of mind, YOU need peace of mind in case the unexpected happens and you bite the dust.
Life insurance is for your family.
I will keep Life insurance as simple as possible, this is for the average individual like myself, if you are a millionaire then you are browsing the wrong website.
Term life Insurance is cheap, affordable and makes the most sense.
Why do I keep repeating term life insurance you might ask?
This is the policy that makes more sense, you set a time frame ( for example until you are 65 years of age) after which the policy is void unless you renew it, this is to cover expenses/income in case you die (pay off the house/car/loans and have some cash for daily expenses) if your kids have not figured it out when you are 65 perhaps they have an issue with work/life and the umbilical cord needs to be cut somehow.
Other options are whole life insurance, usually 5-10x more expensive than term (of note the agent who sells it to you will get a much bigger commission) hence they will push for it, BE CAREFUL !
Types of life Insurance-
Term life insurance.
Permanent life insurance.
Whole life insurance.
Universal life insurance.
Variable life insurance.
Variable universal life insurance.
Simplified issue life insurance.
Guaranteed issue life insurance.
Get an Insurance broker to find out the different policies and companies providing them.
There are different policies ranging from the very complex to very simple, depending on the assets/expenses, and lastly your income will depend how much the policy is worth.
Companies will have also ratings which go from AAA to C, D or F, this will depend on the agency evaluating the company for example,
A.M Rates companies on a scale of A++ down to F
Fitch rates companies from AAA to D
Standard & Poor’s rates companies from AAA to D
So for example A+ might not be a good rating although you think it might be.
There are also independent customer reviews from each company.
Starting off with a trusted Insurance broker which has your best interest at heart is of utmost importance, here you have the basics of Life insurance which I hope is useful for you and your Family.
Till next time.