How to Find the Best Life Insurance

When it comes to protecting the financial future of your family, few things are more powerful than life insurance. While planning for what happens after you pass away is not the most pleasant thing to think about, it is one of those unavoidable realities of life that will ultimately require your attention. For many families, a well-designed life insurance policy can provide much-needed relief and security to help ease stress and uncertainty during the period of time that takes place after a loved one's passing. Life insurance acts as a financial shield for your family, ensuring that there is enough money to take care of funeral costs, outstanding debts, and other immediate expenses as the equilibrium of everyday life is being restored.

In addition, the proceeds from a life insurance policy can be directed towards a variety of other purposes including paying off a mortgage, providing for college tuition expenses, or donating a sum of money to charity. In some cases, life insurance can also be used as an investment vehicle, or even to secure certain forms of debt. This is one of the reasons why life insurance is such an effective tool--it offers a range of flexibility that can address a wide variety of financial needs and plans.

What Type of Life Insurance Should You Buy?

Life insurance comes in two primary forms: Term life and permanent life. Term life insurance is designed to last for a predetermined period of years (typically between 10 to 30), while permanent life insurance offers--as the name suggests--coverage for the duration of your life. While term life insurance is generally considered to be the least expensive option, it should be noted that it has no cash value, and will expire at the end of the stated term.

Permanent life insurance is generally divided into two types: Whole life and universal life. A whole life policy will accrue cash value over time as you continue to pay your premiums. Should you ever decide to surrender your whole life policy, the cash value that you have built up can be returned back to you. A universal life policy provides various investment options, and the premiums you pay can potentially vary over time as a result of how the plan is structured.

When it comes to choosing the best life insurance policy for your personal situation, one of the most important things to determine is the length of time that you will need to be insured. This can be dependent upon a variety of factors, including:

• Your current age
• Your overall health condition
• How old your children are
• How many years you plan to work before retiring
• Overall estate planning ramifications (potential tax consequences, etc.)

After taking these and other relevant factors into consideration, you can then determine whether or not you will need term life or permanent life insurance.

How Much Life Insurance Should You Buy?

The answer to this question will vary based on your individual needs, as well as the needs of your family. One of the basic functions of life insurance is to provide what could essentially be called a "replacement income" for your family should you pass away unexpectedly. Before you can determine how much this amount should be, you will need to consider your current typical household expenses, but also consider adding some extra "cushion" to cover things such as funeral costs, school expenses for your children, and so forth. Below are some questions you can ask yourself to help you arrive at an accurate amount:

• What is your current annual income?
• How many years does this income need to be provided for your family?
• Do you want to cover all of your debts with this insurance, and if so, how much debt is it?
• Will you be paying mortgages, medical bills or loans with this plan?
• Do you need to allocate a certain amount of money for educational expenses for your children?
• How much would it cost to take care of all of your funeral expenses?
• Does your spouse work, and if so, will they continue working after your death?
• What is the total value of your current savings and investments?

Taking the time to answer these important questions can make all the difference in terms of implementing the best life insurance strategy for you and your loved ones.

How to Get Life Insurance

Now that we've covered some of the basic questions and ideas regarding life insurance, the next question is this: How can you actually get a life insurance policy? What's the best way to go about it? Ideally, the best life insurance company will be the one that takes the time to listen to your needs, and then customize a life insurance plan that best addresses those needs. This is what we're all about at RateRocker.com--we don't believe in taking a "cookie cutter" approach, but instead we will work with you to provide tailor-made solutions for your particular life situation. Contact us today to see how we can structure a life insurance policy that can provide the maximum amount of protection and peace of mind for you and your family.