Key Questions Before Buying Life Insurance

Life insurance provides financial protection to beneficiaries of the insured in case of death, an amount that does not involve tax cost to the recipients thereof.

For maximum benefit you have to choose the product that best fits the particular needs of the consumer. The following questions and answers will help you make the best choice:

1. Who needs to acquire a life insurance policy? If you or your family (spouse, children or parents) have made financial commitments having their personal income, the most effective and cost effective way to provide for their survivors a substitute for future earnings if you miss, is the obtaining life insurance. With benefits, the heirs may cancel the debts are in your name or create a fund to be distributed among the beneficiaries.

2. Is there enough life insurance benefits that are received through employment? Maybe not. The life insurance groups, which are often the type of life insurance offered by employers, usually pay a similar limited or lower than the wage of a worker year amount, which is often less than what survivors need to address their plans for short and long term.

3. How is the amount needed to obtain calculated? The main thing is to identify the amount of resources that your beneficiaries will need and how long you need to have it available. Once that amount is known, you can get an insurance policy for that amount.

4. Should acquire permanent life insurance or a term? The term life insurance is a policy that pays benefits when the insured's death occurs during the same term of the policy, or within the term of the policy, which is usually between one and thirty years. Premiums for this type of insurance are cheaper premiums permanent life insurance. The policy of permanent life insurance is valid for life, while the insured pay premiums.