With the recent turmoil in the market, there is a growing interest for financial products that are designed to offer stability and safety.
During the 2008-2009 fiscal crises, many families fled for safety in guaranteed annual dividends.
When choosing whole life insurance, it is important to find a policy that combines a reasonable fee and generous dividends.
The insurer gets to pay an annual dividend while the account raises tax deferred.
To make an informed decision when choosing a policy, you need to ask yourself the following questions: 1.
Why do I need life insurance? One of the main reasons for purchasing insurance is to provide loved ones with financial protection in the event of premature death.
With the passage of time, the needs associated with choosing insurance will change.
For those who are in their 20s and 30s, they consider purchasing life insurance to cater for important items such as raising children, future income potential and housing.
However, as people grow older in their 50s and 60s, the focus shifts to estate planning, supplementing retirement and leaving behind a legacy.
2.
How much coverage do I need? If you want to ascertain your insurance needs, you can consider using online calculators to help you out.
Nevertheless, some of these online calculators do not consider the impact of your lifestyle and needs into the future.
One of the most effective ways of determining the amount of insurance coverage that you need is to consider consulting with a reliable financial advisor who will be in a position to assess and determine your needs predicated on your financial circumstances and goals.
3.
What are my goals? The main reasons for purchasing insurance is to help protect loved ones against financial risks in the event of an untimely departure.
If you have a limited budget you can consider purchasing term insurance.
You should avoid purchasing a policy that is too expensive for you because in a short while you are likely to let the policy lapse.
4.
What are my financial priorities? It is advisable to make the decision for buying insurance in conjunction with other issues.
It is important to determine the amount of money your dependents will need in the event of your untimely death, when you are no longer available to provide for them.
Furthermore, determine the amount of money you are willing to spend on insurance in relation to other important financial commitments.
During the 2008-2009 fiscal crises, many families fled for safety in guaranteed annual dividends.
When choosing whole life insurance, it is important to find a policy that combines a reasonable fee and generous dividends.
The insurer gets to pay an annual dividend while the account raises tax deferred.
To make an informed decision when choosing a policy, you need to ask yourself the following questions: 1.
Why do I need life insurance? One of the main reasons for purchasing insurance is to provide loved ones with financial protection in the event of premature death.
With the passage of time, the needs associated with choosing insurance will change.
For those who are in their 20s and 30s, they consider purchasing life insurance to cater for important items such as raising children, future income potential and housing.
However, as people grow older in their 50s and 60s, the focus shifts to estate planning, supplementing retirement and leaving behind a legacy.
2.
How much coverage do I need? If you want to ascertain your insurance needs, you can consider using online calculators to help you out.
Nevertheless, some of these online calculators do not consider the impact of your lifestyle and needs into the future.
One of the most effective ways of determining the amount of insurance coverage that you need is to consider consulting with a reliable financial advisor who will be in a position to assess and determine your needs predicated on your financial circumstances and goals.
3.
What are my goals? The main reasons for purchasing insurance is to help protect loved ones against financial risks in the event of an untimely departure.
If you have a limited budget you can consider purchasing term insurance.
You should avoid purchasing a policy that is too expensive for you because in a short while you are likely to let the policy lapse.
4.
What are my financial priorities? It is advisable to make the decision for buying insurance in conjunction with other issues.
It is important to determine the amount of money your dependents will need in the event of your untimely death, when you are no longer available to provide for them.
Furthermore, determine the amount of money you are willing to spend on insurance in relation to other important financial commitments.
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