The purchase of life insurance is an important decision for both
you and your family. There are many reasons why life insurance is
purchase, but these reasons should be based upon your needs or wants.
Your marital status, number of dependents, family size, income, and
wealth all play a role in determining the amount of life insurance
that is right for you. The first step is to determine your current
need for life insurance and how much you can afford to spend. It
is a good idea to consider future needs too, because unlike most
purchases, you can't always buy life insurance when you need it;
you have to be in reasonably good health to purchase most types of
life insurance products.
It is important to review you life insurance program every few years
to keep up with your changing financial and family circumstances
and responsibilities.
Your need for life insurance will vary with your age and responsibilities.
The amount of insurance you buy should depend on the standard of
living you wish to assure your dependents. You should consider the
amount of assets and sources of income available to your dependents
when you pass away. Social security benefits, available cash and
other sources of income and investments may not provide the standard
of living you have in mind. Life insurance helps bridge the gap between
the financial needs of your dependents and the amount available from
other sources, is the amount to be provided by life insurance.
