Everyone interested in having an efficient financial protection plan through life will have considered getting life insurance coverage at some point in their lives – and even if they haven’t, with so many new insurers in the market and each heavily advertising their range of policies, life insurance is a hot topic today.
Of course, insurance agents push their range of policies in a bid to woo more customers, but even personal finance experts who help individuals get on track with better and long term financial planning are ready information sources for guidance on coverage types, rates and necessity.
Therefore, getting a basic guide to life insurance types, providers, quotes from different companies and even learning how to calculate rates for premiums – all the important factors that are the basis for a good coverage plan – is easy today.
A lot of this ease in finding basic guide, tips and advice on a policy selection is thanks to the Internet. With hundreds of websites offering comprehensive information on all these important aspects of insurance, consumers can make informed decisions about how much and what kind of policy they need – as opposed to simply going for a standard insurance policy.
Thus, even though some insurance salespeople may suggest a general wide coverage and therefore, expensive insurance policy, experts advise shoppers to use a simple rule of thumb for purchasing a customized plan – since everyone’s financial needs are different. So, a good rule is to opt for coverage that is 15 times the shopper’s annual salary or a figure near about that. Of course, for someone earning $50, 000 per year, this would amount to a whopping $750,000, but the above rule for judging extensive insurance that will cover all possible financial needs of the beneficiary is only to be used as a tentative measure.
So, a little more analysis may be required for judging your personal finance needs a little closely and you’ll surely be able to come up with the right amount of coverage you need to fix for choosing a good policy.
Another aspect to keep in mind when shopping for a good policy is to consider any mortgage payments you may be making.
This is because for those with, for example, home loans to take care of, the coverage required would be equal to the outstanding amount of their mortgage debt. This is necessary because in the event of the policy holder dying, their spouse or loved one will still need to pay off the mortgage in full and so will find sufficient death benefits a great financial support that will help them contribute to these payments.