Do you live in Long Island New York, or New York City?Listed below is a compilation of the most intense Life Insurance Commercials ever created.
I need more more time
My BABY…
My Girl..
Grandpa Chew..
Do you live in Long Island New York, or New York City?For most families, the main purpose of life insurance is to protect the family against the early exit of the breadwinner. In the paragraphs below, we will provide an easy to understand explanation and give some examples of both.
Term Insurance: You pay your premium, and in return you will be protected for the face amount you have decided and for the years the policy is enforced. Term insurance is a very economical way to be insured and relatively easy to understand.
Example: My wife is 31 years old and I pay about $50 a month for a $500,000 30 Year Term. $500,000 is the face amount of the policy. This means that if something were to happen to her, the beneficiary would receive $500,000 dollars. “30 Year Term” is the number of years the policy will be enforced. After 30 years, the policy would expire.
Whole life insurance: One of the reasons Whole life insurance cost more money because some of the proceeds go towards life insurance and some of the proceeds go to what is considered a ‘Cash Value”. A “Cash Value” is something like a savings account. Since some of your money is going to the “cash value”, you will have to pay much more money for the same amount of insurance.
When I had done some research, it would have cost me $200 for my wife to have $500,000 worth of insurance (about 4 times as much as my wife’s term policy). Whole life insurance is also called “permanent insurance”, because the policy could be enforced for life. I could not picture paying $200 a month for the rest of my life on life insurance.
Another disturbing fact I find with most whole life policies is that if the insured person dies, the insurance company keeps the “Cash Value”. So why would I put money into the “Cash Value” if the insurance company keeps it when the insured person dies?
Conclusion: For most families, I would recommend buying a term life insurance policy. Term Life Insurance is a lot more economical than Whole Life Insurance, and provides pure protection. A 20 or 30 year term policy should be more than enough time for your children to move out and have less people dependent on your income.
Other recommended articles to read are: Do I need life insurance and How much life insurance do I need.
Do you live in Long Island New York, or New York City?
How much life insurance do I need?
Not everyone needs life insurance. Before determining how much life insurance you need, ask yourself “ Do I need Life Insurance? “
If you do need life insurance, you should consider the following:
How much is the mortgage?
How much do I owe in debt?
How much are my children going to need for college?
How much would it be for my funeral?
How much of my salary will my spouse need to survive? For how long?
Sample Calculation:
Mortgage = $150K
Debt = $25K
College = $50K
Funeral = $15K
Spouse needs = $300K (30K for 10 years)
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Total = $540K
If you want a simple calculation of life insurance, many financial professionals recommend 8 – 10 times your salary.
Salary = 50K
10X Salary = 500K coverage
Do you live in Long Island New York, or New York City?
Do I need life insurance? I have heard this question hundreds of times throughout my career. This question depends on many factors, however we will use the scenarios below as a general rule of thumb.
Let’s begin with a scenario:
Are you single, and do not have children or dependents?
If you do not have any dependents, you may not need life insurance.
Do you have a wife and children that depend on your income?
Ask yourself the following questions:
1. What would happen to my family if I did not arrive home tonight?
2. Would they be able to pay the house mortgage and taxes?
3. Would they be able to continue their current lifestyle?
If you have answered is “no” to any of the 3 questions above, chances are you need a life insurance policy immediately.
In addition to helping your wife, children and dependents money to survive, it will also help them fund funeral expenses, consumer debt, college education and more.
Conclusion: Life insurance is often overlooked in the United States. I have read many stats indicating that only 50% of Americans own life insurance.
If you do need to purchase life insurance, you should select the best type of policy for you and your family needs. Also determine how much life insurance you need.
Do you live in Long Island New York, or New York City?
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July 31, 2008