1. Life insurance planning - An overview

Planning for the Inevitable

It can be difficult to grasp that someday you will die. Even if you cant imagine it, dont know when it will occur, and might not even want to think about it, you can still plan for it, at least in financial terms. The uncertainty of when you will die can pose a financial risk for your survivors. Underall circumstances, buying life insurance mitigates this risk.

Term life insurance pays benefits only if the insured person dies within the time period (term) covered by the policy. Cash-value life insurance policies pay benefits at death, but they also include a savings/investment element that can provide benefits to the policyholder prior to the death of the insured person.

The longer you live, themore likely you will outlive yourMedicare benefits during retirement. is the best way to address your financial needs as you age.

The risk if you die too soon is that you adequately provide for those who depend on you for financial support. is the best way to address the needs of your dependents should you die. life insurance does this best. life insurance costs about 80% more than life insurance. Most financial advisors recommend buying policies, because eventually the will probably be a greater benefit to your net worth.

Over the course of an adult lifetime, the need for life insurance usually , because ones children , and other funds are available through savings, investment, and retirement plans.

You have decided that you want to buy life insurance. In the following table, list the decisions you need to make in the best order to make sure you cover all your bases. The clarifications in parentheses may not be all-inclusive.

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