Speros Financial
#1 For Life And Retirement Strategies Tip of the day!
https://www.google.com/+VasiliosVossSperos 602-531-5141
Key
tips for first-time life insurance buyers.
Looking to buy life
insurance for the first time? If so, you're probably asking yourself questions
such as "How much do I need?", "What kind of policy is
best?" and "Which company should I buy from?" There's no
question buying life insurance for the first time, like any other new
experience, can be more than a bit daunting. Below are six important tips that
we hope will make the process smoother, eliminating frustrating false starts
and unnecessary bumps in the road.
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 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
insurance.
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. To determine the proper amount of life insurance needed. You can
get a ballpark figure using any number of formulas. The easiest way is to
simply take your annual salary and multiply by 20.
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 mortgage or school bills times it by 12 months. Take
the ongoing expenses and divide by .05. That indicates you'll want a lump sum of
money earning approximately 5% 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.
As
useful as calculators and rough estimates are, there are some things they don't
do.
They
cannot provide you with any final answers. Calculators only allow you to
perform "hypotheticals," recalculating and generating new results as
you make and input new assumptions. Using these tools and educating yourself on
the workings of life insurance and other financial products, however, can help
you feel more comfortable when discussing your needs with such professionals as
a Spence Cassidy and Associates agent.
You
can use any number of planning tools to get an idea of the amount of coverage
you’ll need for your policy. Use a formula to figure out how much you need. An
easy place to start is by multiplying your annual income by the number of years
left before your retirement benefits kick in.
3.
Find the right type of policy.
Once
you figure out how much coverage you'll need, you can think about the best kind
of policy to meet your needs.
You
have two main options: term life, for a more affordable premium, or permanent
life, for more comprehensive coverage that can add cash value. But you have a
lot of options to explore.
4.
Look at the quality of the provider.
An
insurance policy is only as good as the company that backs it.
You
want to make sure you to choose a company you can rely on to be around for as
long as you'll need your coverage, and which invests your premium in a highly
prudent manner in order to pay the claims of its policyholders.
5.
Consult a financial professional.
A
financial professional can help you factor in financial considerations, your
needs, and your family's needs.
Vasilios "Voss" Speros 602-531-5141
Spence Cassidy and Associates
#LifeInsurancePhoenix #RetirementStrategiesPhoenix
http://www.scaaz.com/
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vsperos@scaaz.com
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