Tuesday, September 18, 2012

How Do I Know What Kind Of Life Insurance Is Best For Me?

Have you ever wondered why there are so many types of Life Insurance and how to go about picking a plan?     As Balanced Care continues to focus on Life Insurance during National Life Insurance Awareness Month, I felt it was a good idea to talk about the different types and who they would best suit.    

There are really two types of Life Insurance - One being term and the other being permanent.   To prevent confusion, Balanced Care will focus on Term Life Insurance in this post.          

Term Insurance provides protection with the least amount of cost.    Term Insurance is often called Pure Life Insurance because it does not have any savings or investment features in the plan.    Term Insurance is also the most straight forward type of insurance as you will pay a premium (normally monthly or annually) for a specified amount of time.     This normally ranges from ten to thirty years for most policies.    

Generally, most people buy Life Insurance as a means of providing a lump sum of income to their survivors in the event of an untimely death.     This income can help with mortgage payments, rent, car payments, childcare, debt, and college education.     As we get older, our expenses should go down.     Mortgages will be close to being paid off and children will grow up and move out.     If we consider that the average mortgage lasts thirty years, it is a belief that the need for Life Insurance will decrease.    

Term Life Insurance policies will benefit families that rely on two incomes.     If you have a mortgage and live with either a spouse or significant other, you will want to purchase some Life Insurance as mortgage protection.     The general rule is to purchase enough to be able to pay the home mortgage for the duration of the years left to pay on it.   

You should also take into consideration Income Replacement.     If you have been relying on two incomes and suddenly go to one, your standard of living will change as well.   

As with any type of Life Insurance, the earlier you decide to purchase it, the better off you will be.    Your age and health when you are younger will make the premium much more affordable and easier to be approved.       If you feel that Term Life Insurance will be your best best, feel free to call Balanced Care for a no obligation quote today.     Balanced Care works with over forty insurance carriers making sure to find you a plan that takes your budget into consideration and your protection our number one priority.     

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