Life insurance to protect your family

Life insurance is a must if you have a family , you are their source of revenue, and you want to protect your spouse and children in case of disaster!

You need life and sometimes health insurance depending where you live.Many considerations are to be taken into account:

Does your employer have a complete benefit plan, life and health insurance, retirement plan?Your age and your children's age have to be taken into account.What part of your revenue should be devoted to life insurance?What type of life insurance should you buy?

We will try to answer these questions, it will give you the general idea.
You will still have to ask questions to your insurance broker or agent.

Your employer has a complete insurance benefit program, that is very good, but usually only to cover your basic needs.
Most financial advisors recommend that you do not spend more than 2% of your revenue for life insurance.
Your children are very young, in case of disaster, you need the maximum capital to protect then until their majority.

The best type of insurance that you can buy is a renewable annual temporary contract. This type of protection will give you maximum protection for minimum premium.
The premium will increase every year but when young the amount of the increase is very little.

Or if you want to compare to whole life contract, then determine how long you will want your insurance policy.
Ask for a quote on a term ten or twenty year policy. The premium will be spread evenly over the life of the policy.

Let's say you are 30years old, a term one-year renewable policy will cost you about $1.50 per $1000.00 of insurance for $100.000.00 policy, that is $150.00 a little more for a smaller policy, a little less for a larger policy.
Compare that to a whole life policy of $100,000.00 that will run in the neibourhood of $500.00 premium, that is 3 to 4 times more.

The premium for the term life insurance policy will increase every year and may come to $8.00 per $1000.00 by age 45 that is $800.00 a year.

The premium for the whole life insurance policy will be fixed throughout your whole life and after 4 or 5 years, you will have buy back values in that policy.

After many years, your buyback value can be as much as 50 to 60% of your policy.

It means that if you want to buyback your values, you will get $50,000.00 to $60,000.00But, what appends if you die and have buyback values in your policy?
The insurance company will pay the capital insured and your successors will lose the buyback value!

Another popular option is a term one hundred year policy, this type of policy has a fixed premium throughout your life, will cost you between 2 1/2 to 3 times more than a term one year policy, will cary no buyback value.
The insurer will pay the capital at death or in one hundred years! This maybe the most economical option if you plan to keep your policy for a long term.

But remember, not very many people keep an insurance policy all of their life.

What about options like accidental death?

Is it worth it?

If you like to play roulette with your insurance, it is ok. But if you think that you need more insurance than what you have subscribed for, then, better buy it.
The chances that you die from accident are very minimal. If you die from natural cause, the insurer will not pay two or three times the capital.

Do not forget to make a Will and a Power of attorney.