Monday, October 01, 2007

Life Insurance, How Much is Enough?

Life Insurance may be taboo to talk about because no one wants to talk about their mortality, but Life Insurance is something everyone definitely needs. Well how much do you need? Money Magazine says that you need to multiply your income by five to come up with the amount that you need. Much of the question is how much will your family need to survive if you pass away. Then there is the question of whether to get a term life policy or a whole life policy. A term life policy is good for the amount of years you purchase it for 10yrs, 15yrs, etc.... A whole life policy is more like an investment, you are investing a premium into your policy and if at a certain age you have not passed away, you can start withdrawing on your money. The younger you are the cheaper it is to get a life policy and you can have a lot invested by the time that you are ready to retire. The best thing to do is get with a good agent and have them go over your many options.


Anonymous said...

"Everyone" absolutely does not need life insurance. Generally the only people that need life insurance are those who have dependents on their income.