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In order to achieve your financial destiny requires financial planning. A financial plan must take into account its good and bad times during a person's life . Buying life insurance accounts for potential bad times during a person's life and that is the main reason for buying ' s life . Yes,
I said three malicious words " purchase life insurance . ' Life
insurance is the foundation of any sound financial management plan.
Basics of Life Insurance
For many people life insurance is when something is going to buy the "one day" seen . Most people know that they have to life insurance , but never take the time to do basic research .First, the life cover is a replacement income in the event of a spouse or parent dies prematurely be . If you and your spouse to produce income , then it must be protected. Today, most families income of both spouses must , no matter how much they deserve to live their lifestyle needs.Life insurance coverage is at stake when a spouse dies prematurely , and the result is always needed for the family. Most financial experts recommend that a person should have 5 to 10 times your annual salary. This is not a hard and fast rule , but this number will give you a starting point for the amount of coverage .Life insurance is not meant to be your retirement plan or college funds for their children. If you sold your financial advisor you have a policy in order to meet these needs should get a second opinion .
Types of Life Insurance
For a couple , if you look at the political life of three types of life insurance, group insurance , insurance value of cash and long-term care .
Term Insurance Group
Group insurance is the easiest to explain . Group long-term insurance life insurance joint offer by the employer to the employee . Life insurance covers only the employees in the labor market. In general, the cover is responding the annual salary of the employee , not the recommended 5-10 times the annual salary for only one or two times. This type of insurance is a good liability insurance and should not be your primary insurance .Group insurance is cheaper because of the amount of coverage is low and there is little the approval process or not
The cash surplus
The second type ' of life goes by several names : life insurance or permanent insurance cash value. With Cash -QA has two different levels of cover . One is the nominal or real your beneficiaries receive coverage . It also has a second amount . The value of cash The cash value increases over time and their beneficiaries receive the face value and the actual value depending on the payment method.All life has once again become popular in the last decade due to the low profitability of the market. However, the life insurance as described above does not intend your retirement account , but income protection . It is much better to save your money for retirement, as Roth IRA.Of the three types of cash value life insurance policies is the most expensive .
Life Insurance
The last type " of life insurance is insurance. As the name suggests, provides coverage for a certain period or term. A time when less than one year to 30 years or more. At the end of his term of office may re-evaluate your life insurance needs see how . during this phase of his lifeA common long-term many families to buy in 20 or 30 years. A period of 20 years would be years , but be sure about his responsibility to the tip , the next 30 years should be sufficient.One tip that you should be aware of long term care insurance is your choice at the end of the term. Do you find the same policy guaranteed renewable policy with no medical questions. The reason is that you never know what our health can be on the road like 20 or 30 years , have a guaranteed renewable policy is critical to your financial plan.Many cheaper term policies must be new - qualify for life insurance at the end of the term. This means that you have to answer medical questions that have to maintain the supply .Term life insurance costs more than the insurance group , but is generally 2-3 times cheaper than cash value insurance . But do not just look at the cost as the only factor. You have the recommended 5-10 your annual salary at a number of suitably protect your family arrive . Find the amount of coverage that you and your spouse need and price.
What the experts say
I have never enjoyed listening only financial advisors and insurance agents. I like to see what others have to say about these topics. If the question is more productive life insurance company or third persons recommend term life insurance . Read financial magazines like Smart Money and Money magazine and books by Dave Ramsey or Suze Orman or newspapers like the Wall Street Journal and USA Today, for a second or third opinion .The sources said , at one time or another , that long-term care , a better way to protect your family.Foundation Life insurance is a financial plan and a family depends the profit for the financial year plan into reality. Then remove the income of the plan falls apart. Life insurance can protect the financial plan, if one spouse goes ahead .We build our financial future.For more information, please visit http://buildyourfinancialdestiny.com financial independence.
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