Life insurance is an important part of financial planning, but understanding insurance and purchasing the right product can be confusing. While you should rely on the expertise and recommendations of your insurance agent, it’s always a good idea to do your own research. Here are five factors to consider before you buy insurance:1. Why you need life insurance. We all want to plan for our family’s future and financial security. Part of this process includes ensuring that our loved ones are supported in the event of our death, a spouse’s death, or the death of a parent. Insurance can provide protection in many different ways, such as helping to fund your retirement or paying for mortgages and college educations. It is also a key component of estate planning.2. The amount of life insurance you need. There are many factors to consider when deciding how much insurance is right for you and your family, and they may change as you age. It’s important to understand the purpose, policies, premiums, benefits and, ultimately, the best insurance for your specific situation. Here are a few considerations when determining how much insurance is enough:*How much money your family will need to live comfortably if you pass away
*Whether your home is paid for or if you still have a mortgage
*If you have a business, how your passing will financially impact the company
*Whether your family has access to money to pay for your burial expenses
*The cost of financial and legal assistance to manage your estate
*Whether your passing will create an estate tax burden for your heirs3. The different types of insurance available. Once you decide how much insurance you need, the next step is deciding whether term insurance or whole life insurance is right for you. Here are the basics:*Term life insurance: As its name implies, term life provides protection for a specific period of years. If you pass away during this period, your beneficiaries are paid the value of your policy. Term life insurance is the most popular for a variety of reasons, including the fact that benefits can be used to pay off outstanding debts such as mortgages in the event of a premature death, and that premiums are generally inexpensive when you purchase it at an earlier age. Someone in their 20s, for instance, will pay far less than someone in their 80s for the same amount of insurance.*Whole life insurance: A whole life insurance policy remains in effect throughout your lifetime as long as you continue to pay the premiums. You can typically use whole life insurance policies as collateral for loans or even receive cash payments while you are still living. However, premiums for whole insurance are more costly than term insurance, so younger families are generally encouraged to buy term life, with the option of converting the term life policy to a whole life policy at a later date.*Universal Life: A universal life insurance policy also provides permanent life insurance protection, but differs from whole life in its flexibility that allows you to select the amount of protection that best fits you, your family, and/or your business. You can increase or decrease coverage as your insurance needs change, as well as control the frequency and amount of premium payments.4. Risks that impact insurance costs. Insurance premiums are based on many different risk factors, including age, overall health, and the use of tobacco. If you are still relatively young, are in good health, and don’t smoke, now’s the time to buy insurance!5. How to choose the right insurance agent. With so many variables, choosing the right amount and type of insurance should be discussed with a trusted independent insurance agent. Independent brokers have access to many more insurance products and are typically more invested in your financial future. Be sure to do your homework, don’t be afraid to ask questions, and know your policy inside and out before you sign on the dotted line.If you’re shopping for life insurance and want to learn more about the right type of policy for you and your family, visit http://www.KellyWilliamsIns.com or call 562.498.8661.
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Insurance for your Auto and Insurance Quote for You
With the rising frequency of automobile-related accidents, auto insurance is needed more than ever. In fact, auto insurance is compulsory for many of the world’s drivers, who cannot go out on the open road without a policy in the first place. In the United States, penalties are placed on drivers without auto insurance. As a responsible driver, you will need insurance for your auto and an insurance quote in order to decide which policy you should purchase.Before you get insurance for your auto and an insurance quote for yourself, you need to understand what car insurance covers. Auto insurance can cover one or more of three different insurance levels. The insured party can be the person whose name appears on the policy, or it can be anyone who is driving the car at that time. Rules and extensions will differ from state to state and company to company.Auto insurance will also cover damage done to the vehicle, perhaps due to an accident or vehicle breakdown. Finally, third parties can also be covered to some extent by insurance, depending on whether they caused damage to the vehicle, or if the vehicle and its drivers had done damage to them. As you examine prospects for insurance of your auto and the insurance quote containing details on the prospective policy, study the extent to which coverage will apply in order to save yourself legal entanglements and troubles later.In order to purchase car insurance, you will need to pay a premium for a specific amount of time. You can find the value of this premium when you study documents for the insurance of your auto and the insurance quote given to you. You also need to understand how the insurance company arrived at such a price. Depending on where you live, the insurance premium can be determined in one of two ways: it can be dictated by your local government, or set by the insurance company according to local government regulations.Premium prices are calculated by insurance actuaries and are based on local road and lifestyle statistics. Premium prices also depend on the design and age of the car, the coverage you will select, your profile and lifestyle, and how you intend to use the vehicle. In general, the more coverage you require, the higher the premium price, although some insurance companies can give you discounts on coverage. If you have no previous driving record, you may also need to pay a high premium price, unless you take advanced driving lessons.Study insurance prospects for your auto and the insurance quote that a company will offer you in order to determine which package you should select. Take note of legalities, especially where third parties are concerned. In some states, and for some insurance companies, insurance policies extend to the policy holder only if the holder is driving his or her car. If you drive a car owned by someone else, then that person’s car insurance policy applies to you. Some insurance companies, however, can offer non-owner insurance policies, which is available to drivers who do not own their own cars. Non-owner insurance may also be imposed on people who may have been involved and found culpable in a previous vehicular accident.As you take a look at prospects for your auto and the insurance quote given to you, look at the kinds of damage or accidents that will be covered. In particular, take note of liability coverage, which is the fixed amount of money that serves to cover damages that you as the driver may one day be legally bound to pay. For instance, if you smash your car against the wall of a restaurant, destroying the establishment and injuring customers, then you may be required to pay the restaurant for damages, and the customers for medical care.Take note of coverage for specific accidents for your auto and insurance quote specifications regarding such accidents. Collision coverage is optional, and comprehensive coverage will take care of damages done to your car aside from those that can be brought about by anything other than a collision. This can include theft, fire, vandalism, or driving into an animal. You may also be offered roadside assistance, which can be useful if you need to pay for car towing services in the event of an accident or vehicular breakdown.Study insurance prospects for your auto and the insurance quote that the insurance company will give to you. Do as much research as you can on statistics related to driving in your state. In these busy times, you need to protect your car and yourself.