This post will help you learn a lot about life insurance coverage and some secrets to get the most of your life insurance. As you know, life insurance is very important and it would be hard not to have one especially if you are the breadwinner of the family with two or three lives depending on you. Here are some brief and detail information altogether about the various coverage and secrets. A common question when considering life insurance is, “How much will it cost you?” One way to get a good estimate is the use of insurance calculator.
What is Insurance Calculator?
It helps you understand how important life insurance is and give you a strong idea on how much coverage you would need. It allows you to give your own estimate on how many expenses you will probably make for several occurrences or factors. Here are some of the elements to consider.
How many years will you want your income to be replaced
This is another question or factor to consider when thinking about life insurance. You should base your answer by considering how long your family may need your income if you were to die today. Are you thinking of until your children finish their education or when your spouse retires or get a job and so on.
Annual Income Need
– The estimated amount you need to cover the family’s usual living expenses. This includes college fees, childcare, house needs and so on.
– Do you have extraordinary expenses such as college?
– These include buying a new car, wedding home improvement
Your current Funds and Savings
– This is a factor that helps you think about what life insurance coverage to take. You savings and investments both liquid and semi-liquid is included.
Now all you have to do is to total these amounts and multiply it by the years that you need the annual expense. Calculating this may lead to a certain amount and this is the one you want to target or cover for your own unique needs and expectations. This is also very important in getting cheap life insurance.
Now that you have an idea on how much you will need for a policy, you then match it with the right coverage.
There are two main types of life insurance coverage and this includes term and permanent policies.
It is not permanent and may last from 1 to 30 years. You may choose on yearly renewable term life insurance, decreasing time life insurance and 5 years, 10 years, 15 years until 30 years. Term insurance usually has cheap life insurance quotes since you do not have to pay regularly and you choose your protection with a limited price. Although to benefit, incidence should happen within the term or else you will not get anything at all.
They are usually the choice for life insurance because it gives permanent protection. There are lots of variations for this and these are a few of them. Universal life insurance – flexible permanent life insurance that changes your insurance policy as what fits your needs. It is more like a savings account which money is withdrawn each month. You also invest in varying amount over the years depending on your needs.
Variable universal life insurance – it combines permanent life insurance with a diversified investment portfolio.
Variable life insurance – is a type of whole life insurance that is combined with investment properties.
Whole life insurance – this is the do all of life insurance. This the original type of life insurance.
Limited payment life insurance – limited pay life insurance is a way of having the best of all worlds. It is a whole life policy but you pay a premium for a predetermined number of years and you have the policy for the rest of your life.
Single premium life insurance – this is good for accumulated investment or payment. Therefore, you pay a lump sum and get various coverage for life insurance.
Graded Premium life insurance – a less known life insurance it is a variation of whole life type policy that starts out with a lower premium that increase each year for a certain number of years then levels off and remains that way for as long as you own the policy. It is also called graduated premium life insurance.