How to Buy Life Insurance

Life insurance is not a luxury and it is not an option; if you have a family who counts on you for their financial support, then life insurance is an absolute necessity for you. The purpose of insurance is to provide financially for your family if something happens to you-like death. According to Fox News, more than 100 people die every day in car crashes in the United States alone.

Of course, more people die from unexpected accidents, undiagnosed disease, and more. As much as we would all like to think that we are immortal, we are not. Now, that said, with luck and good habits, you may live to be 100. However, as with many things in life, you should hope for the best and plan for the worst; this means finding cheap insurance that fits the needs of your family.

Life insurance comes in a variety of types. The two most basic are whole life and term insurance. Whole life is insurance that you purchase once, make monthly payments on, and keep for your entire life (or as long as you make the payments). Whole life can sometimes be borrowed against or even cashed out in cases of financial or health crisis. Some policies have set rates that never increase; other cheaper insurance policies increase as you achieve higher age brackets. If you choose to buy whole life, be sure you know how the rates will change over your lifetime.

For most people, term insurance is better. Term insurance is usually cheaper insurance than whole life, and is designed to cover you for a set period of time, or term. You could use this relatively cheap insurance, for example, to cover you for the 20 years that your child is exclusively dependent upon your income. A $1,000, 20-30 year term policy can cost a 35 year old non-smoking female just a dollar a day; that dollar would guarantee that if you were to die unexpectedly, your child would have enough money to live on until they are old enough to support themselves.

Remember that choosing your insurance agent is as important as choosing a policy. This is because a bad agent may not be looking to sell you cheap insurance or insurance that fits your needs; they may try to sell you insurance that fit their own needs. You also want an agent who knows the various insurance companies, and is careful about choosing dependable companies who will be around throughout your policy term and pay, if need be, without problems. Be careful to choose a reputable agent, one who listens to you and considers your life situation, making thoughtful suggestions for insurance which suits your family and budget.

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