Posted by: Donnell Insurance | Posted on: August 7th, 2012 | 0 Comments
Posted by: Donnell Insurance | Posted on: July 31st, 2012 | 0 Comments
Life insurance should be considered essential if you have a family and financial commitments, especially if you are the main or only income earner. If something should happen to you, your family would not only have to cope with their grief, but also have to struggle to meet financial commitments with the loss of your income. An insurance broker will be able to find you the most affordable life insurance policy that is suitable for your needs.
Typically, the most affordable life insurance is called term life. Term life insurance is taken out solely to pay out a lump sum of money should you die. This can be invaluable to your family and gives you the peace of mind that at least they wont be left struggling financially to make ends meet. It doesn’t however pay out unless you die, but it is the cheapest and easiest to understand of all insurance policies.
Of course when taking out any form of life insurance you will need to know how much coverage you need. Generally the amount that you should cover yourself for should be enough to pay off your mortgage, debts, funeral costs and 3-6 months income. You should also take into account inflation and the needs of any children as they grow up. For example, if they wish to go to college or university then extra could be put aside to allow for this. Once your broker knows this amount they can begin shopping for the best coverage and lowest cost life insurance that is best suited for your needs.
While going with a broker for your policy will ensure you always get the best deal you should also be aware of what the policy covers you for and what the exclusions are within it, again a broker can give advice on this.