Looking to buy for the first time? If so, you're probably asking yourself questions such as women's ugg classic cardy blue 5819 "How much do I need?" and "What kind of policy is best?" There's no question buying life insurance for the first time, like any other new experience, can be more than a bit daunting.
That’s why Utah Life Insurance Agents created “The Five Most Important Tips for First Time Buyers” and we hope this article will make the process smoother, women's ugg classic cardy black 5819 eliminating frustrating false starts and unnecessary bumps in the road.
Five Tips for the First-Time Buyers:
1. Understand Why You Need It
While most people may need life insurance at some point in their life, don't buy a policy just because you heard it was a good idea. Life insurance is designed to women's ugg classic mini grey 5854 provide families with financial security in the event of the death of a spouse or parent. Life insurance protection can help pay for mortgages, a college education, help to fund retirement, provide charitable bequests and of course is a key element in estate planning.
In short, if others depend on your income for support, you should strongly consider life insurancewomen's ugg classic mini sand 5854. Even if you don't have any of these needs immediately, you still may want to consider purchasing a small "starter" policy, if you anticipate you will have them in the future. The reason: the younger you are, the less expensive life insurance will be.
2. Determine the Amount of Coverage You Need
The amount of money your family or heirs will receive after your death is called a death benefit.women's ugg classic mini chocolate 5854 To determine the proper amount of life insurance an online calculator, like the one available at this site, can be helpful. You can also get a ballpark figure using any number of formulas. The easiest way is to simply take your annual salary and multiply by 8.
A more detailed method is to add up the monthly expense your family will incur after your death. Remember to include the one-time expenses at death and the ongoing expenses such as a or school bills. Take the ongoing expenses http://blogs.rediff.com/uggxlgwp and divide by .07.That indicates you'll want a lump sum of money earning approximately 7% each year to pay those ongoing expenses. Add to that amount any money you'll need to cover one-time expenses and you'll have a rough estimate of the amount of life insurance you need.
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