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Life insurance is simply intended to cover the financial risk of death. In
general, anyone who wants to make sure that their family does not have to change
its lifestyle after his or her death needs to have it. Life insurance has
several variables: duration of coverage, frequency and stability of payments, as
well as payout method and amount of coverage.
You can use simple rules of thumb, but a real evaluation of your needs should
take your whole financial picture into account. Most advisors recommend an
amount between 5 to 10 times your salary. Feel free to contact us if you would
like to find out more about developing a financial plan.
Life insurance, unfortunately, is sometimes marketed as something it is not.
Life insurance is not an investment. Some forms of life insurance have
investment components to them. However, these forms of insurance still must pay
death benefits and cover the attendant risks in order to work. Bear in mind that
you are not guaranteed a health rating or premium level until all the
information has been collected and reviewed by an underwriter. Predicting a
person's health rating is difficult yet very necessary for budgeting. The most
common mistake most people make is they "guess" a better health rating than they
will actually receive. This can result in a bad "surprise" later.
Supplying information to the insurance company can be a delicate process. The
assistance of an insurance agent or advisor is almost always a huge help during
this process. Fortunately, having help picking and getting a policy costs you
nothing, and can save you a lot.
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