insurance sector in usa

insurance sector in usa
friendly, neighborhood life is most likely an answer to this question with the word" all ".

The fact is that not everyone needs life insurance. If you do not have a family, you probably do not need life insurance unless, of course, you're a really nice guy and would just like to leave some money, a friend or a charity.

If you have a family, the question is not, you need life insurance. The question is, how much do you need?

A life insurance salesperson, you can use you, some kind of formula. In years gone by, he would have said that you need to buy insurance in the amount of four times your annual salary. So, if your annual salary is $ 50,000, you would have said you need at least a $ 200,000 policy. Today, the same agent can tell you that you are eight times your annual salary or a $ 400,000 policy.

In most cases this is probably too simple a concept, as they usually assume that your family's sole provider.

Today there are a number of other factors which should be considered. Does your spouse work or is he a stay-at-home mother or father? Are you a single mother or father? And if not, your? How old are your children? Will your surviving spouse be increased for children three years or 15? If your spouse works, how much he or she earn? If something happens to you, there are close to the family, help your children or the nearest family 1,000 miles away?

Let's take a hypothetical example. Jim W. is 45 years old, earns $ 75,000 per year and has two children aged 15 and 17 years. Jim wife Martha is 43 and receives $ 50,000 a year. Jim and Martha that their children college material. How much life insurance should have Jim? Suppose that $ 25,000 per year times the two boys, times four years. That's $ 200,000. Jim wants to make sure Martha lives comfortably for the rest of their working life and figures she will need an additional $ 25,000 per year to do this. Multiply this $ 25,000 by 22 and that is $ 550,000. Add this to the cost of the Boys' College, and Jim needs at least $ 750,000 life insurance ... and that not everything on Martha's retirement!

Now, with Beth, the single mother of a boy, Robbie, eight years and a girl, Kinsey, age 12 years. How much insurance must be Beth? There is no spouse, but if something happens to them, the children will go to her sister, and sister need financial assistance. So it is assumed, 10,000 U.S. dollars a year to the sister for 16 years - $ 160,000 - plus school for the children at $ 200,000. This leads to a policy of perhaps $ 360,000. See the difference that circumstances can make?

Before buying a policy, sit down and find out who is going to make sure how long they need the help and realistically, what that help should come from. If you die this should not be like winning the lottery for your survivors. They buy not so much security that you are really strapped for all those years before clicking.

The next step is to do some comparison shopping. Different insurance companies often quote different prices to just about the same extent as they assess risk differently. You should also cover the cost of term vs. cash value life insurance. Many experts believe that if you're young, with young children, your best bet is a term because it costs less, yet offering good coverage. For example, if you are 35 and in good health, you can probably $ 500,000, 10-year level term Polity for less than $ 300 per year. And a 20-year, level policy could cost you not more than $ 400 per year.

You might also save money on insurance by buying more than one policy area. For example, if you have two children, one aged 12 years and the age of eight, you might consider purchasing a 10-year-olds, on the long-term policy, the 12-year-old through college, and a 20-year policy for eight years by the university.

Finally, you can use term insurance quotes and buy without ever having seen a life insurance agent. There are a number of web sites where you can do this, including quickquotes.com, reliaQuote.com and intelliquote.com.

It is important to understand that the quotes from these sites are just preliminary quotes. The insurance company is not a fixed rate until all information required, and in most cases, a physical one. The good news is that the physical is in your home and in your convenience.

Cash-value life insurance is a much more complex problem. The best way to get information about it is, with a good, experienced agent who can explain the alternatives available and the costs and benefits of each.

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