I hope no one you love ever dies. It is my special hope that no one you love dies young. But people do die and sometimes the death is especially tragic because the loved one is young and has a family counting on their love and their income.

Why have life insurance? When a parent or guardian dies, the family not only looses the love of their parent may loose their lifestyle, too. They may no longer be able to stay in their home, go to the same school, or have a stay-at-home parent or one that only works part-time. Your death alone would be devastating, but to add to that the loss of a child's whole world would be such a heavy load on their little heart.

How much insurance is right? The answer to this question depends on you, your income, the age of your dependents, the income or finances of the household. Would you want to keep the living standards the same, or change them? Do you want to cover college costs? What about the mortgage? Is that covered with another insurance policy? Will the insurance need to cover the cost of a babysitter for several years? Are there other family members for whom you contribute income and who would suffer a financial blow should you die unexpectedly? Some web sites I saw say have 5-10 times your annual salary in insurance, while other sites recommended a more detailed analysis of your needs.

What type of insurance? There are several types of life insurance with the two most common being whole and term. Whole life insurance lasts from the time you purchase it until you die- so long as you pay the premiums. It accrues cash value. Term life is purchased for periods of time, such as 10 years or twenty and is often used to cover a particular time in life where more substantial insurance needs occur, such as those of parents while children are dependent. Term life doesn't not have cash value. There are other types, but these are the two basic.

Keep your health and credit score in mind- Your driving record, health history, and even your credit score are all pieces of the underwriting used to determine your cost for any insurance. Think about it, if you drive drunk and smoke like a chimney you may not live as long as your careful, health conscious twin whose rates may be substantially lower than you insurance rates.

Company strength- The insurance you choose needs to be payable to your family and from a company whose financial position is strong. Their insurance rates may be different than other companies, but they need to be in business years from now to pay that claim.

Everyone dies. Money won't fix that horrible loss, but is could make life without you much less painful.


Citations:
Met life
http://www.newyorklife.com/nyl/v/index.jsp?vgnextoid=3fcace42249d2210a2b3019d221024301cacRCRD

Today- 10 tips


Get rich slowly 14 tips
http://www.getrichslowly.org/blog/2009/04/28/14-tips-for-purchasing-life-insurance/


Marion R. Syversen, MBA - President
NorumbegaFinancial
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Marion@NorumbegaFinancial.com
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