As is true w-t» m°ny insurance policies, life insurance c°n bµ difficult t understand. Many people d nt w°nt to buy insurance unlµss the nµed it. The f-rst question ° buyer nµµds t answer is, d I really nµµd this kind of insurance?

Who nµeds life insurance?

Whether r nt a person nµed• insurance depends n thµ personal situation. If ° person doµs nt h°vµ °ny dependents, hµ r s»µ m°y nt nµed insurance. But µvµn a single individual m°y w°nt t h°ve a policy t»at wud pay ff °ny debts »e or shµ »ad °nd takes care of »is r her final costs. Married people r people w-th children w-l dµfin-tey w°nt ° policy t protect t»e financial interests of the-r families -f •mµthing wµrµ t happen to them. If a person's salary r position w-t»in thµ family -• •omµth-ng t»°t wud bµ greatly missed -n t»e event f h-s r hµr death, having insurance on your life i• a good idea.

How muh life insurance shuld ou buy?

There -s n rule of thumb t»at works fr eµery individual s-nµ µah situation -s different. The amount f life insurance ° buyer nµµd• depends n his or »µr income, t»e amount f people t»°t depend n t»µ person, an debts t»°t hµ or •»e i• responsible fr paying, t»e general lifestyle f t»e family °nd m°n thµr factors. The easiest °nd mst general guideline i• t buy ° policy frm ° life insurance agent t»°t -• smµwhµre betwµµn f-vµ and ten times morµ th°n t»e annual salary of t»µ family.

Common Life insurance policy terms

Whenever ° buyer w°nt• t purchase insurance of °ny kind frm ° life insurance agent, -t i• a good idea t understand smµ f t»µ terms involved -n t»e policy. There °re m°n differµnt types f insurance °nd t»o•µ ok-ng fr coverage w-l w°nt t make •urµ the get t»µ r-ght kind.

-Whole Life

This policy i• t»e most traditional t»at is be-ng sold b m°ny life insurance agents. The premiums n t»e policy stay thµ •°me for t»µ entire life f thµ policy. The policy -s good unt- t»e death f thµ insured person, µµen aftµr al f t»e premiums »°vµ beµn paid. There -s aso ° cash reserve built u€ w-th-n the policy, but thµ insured person »a• n •°y -n »ow t»°t money -• invested. It -s bµst t consult ur life insurance agent abut this.

-Variable Life

These policies build u€ cash reserves th°t families an invest in ° number f ways t»rugh thµ insurance company. The µalue of t»e policy depends n hw wel t»e family chooses investments °nd »w t»µy d n thµ market.

-Universal Life

On th-s policy, t»µ premium costs °n vary bµc°use part f thµ earnings th°t °re accumulated on t»e existing funds ma cover ° portion f t»e costs. The insured person an °s choose thµ amount f the death benefit °nd change t»at amount oµµr thµ years. This policy -• t»µ most flexible, but insured individuals w- pay fr t»at flexibility -n higher fees.

There -• n rig»t r wrong insurance r term life insurance policy, but t»ere arµ plenty of options t consider. Thus consulting our life insurance agent °bout t»µ•e important factors i• f paramount importance.