facing the fact of your demise, and actually doing something about it, brings priceless peace of mind when you actually consider what circumstances your family might face when you're no longer around...
Besides funeral expenses, there are car payments and other monthly bills, (not to mention the kids' tuition and the monthly mortgage) which may prove a considerable hardship for your family
when they no longer can depend on your steady income.
you choose the more affordable term
life insurance, the traditional whole
life insurance, or whole life's more flexible but riskier alternative, universal life, most insurance companies can cover most or all of your family's expenses long after you've thrown off this mortal coil:
Term Life Insurance
Term life insurance is so-called because its protection extends on an agreed period of time (anywhere from 1 to 30 years), including a death benefit payable only during the agreed term of coverage.
Monthly premiums for term insurance are usually cheaper than "regular" or whole life insurance, and are renewable annually. Each time you renew the policy, the payments increase, but in theory so will your earning power - making term life
insurance the more affordable option for young families just starting out.
Permanent or Whole Life Insurance
You'll have to pay higher annual premiums than for term life insurance, but permanent life insurance payments never go up, so in the long run payments are actually cheaper.
In addition, permanent or whole life policies build up cash value that you can later borrow against in the event of a financial pinch.
How Much Coverage?
As mentioned above, life insurance policies can cover more than the burden of your final medical bills or funeral costs.
Consider your family's financial obligations in the way of mortgage payments, your child's education, or other ongoing costs that may factor into keeping your family solvent after your departure. Many insurance experts will advise that the amount of the
policy you purchase should be anywhere from five to eight times your annual income.
Finally, as with any insurance policy or financial service offered, it always pays to shop around before deciding on the best deal on life insurance protection.
Around the Web, find out more about life insurance with facts and information on what type of insurance policy is right for you and your family, advice for first-time buyers, and online tools and calculators for assessing how much life insurance you really need...
More facts & information about life insurance around the Web:
Insurance - Excellent intro to the subject from MetLife with a discussion on purchasing the right amount of life insurance, a Survivor Needs calculator, facts on term life and permanent life insurance, glossary, FAQ, related resources.
Insurance.com Life Insurance Center - One-stop browsing for facts and how-to's on the subject including tools and calculators, tips for first-time buyers, ways to save
on life insurance and lots more in their article library.