52 Simple Ways to Manage Your Money – 22. It’s My Life – Life Insurance
What it is …
Hiring a life insurance company to insure your life against death, with a pre-set, specific dollar amount to be paid to a beneficiary.
How it helps…
Protects survivors financially.
Promotes peace of mind for the insured.
Key items to look for…
Type of insurance that best fits your needs.
An insurance plan, NOT an investment plan.
The cost of insurance in the plan.
The commission paid.
The surrender penalties.
The financial strength of the insurance company.
Strong biases from your advisors.
Time …
One hour to evaluate your needs and meet with an agent.
A half an hour yearly to review and update.
Keys to action …
Decide if you need life insurance. Ask yourself, Is anyone dependent upon my income?
Determine the amount of insurance needed. What expenses/time frame do you want co cover?
Choose a type of insurance: insurance without a savings plan (term), or insurance with a savings plan (whole life, universal, or endowment).
Meet with at least two advisors to discuss options.
Know the cost of getting out before you get in.
SET IT UP
Determine if you need life insurance at all.
STEP ON IT
If you do need life insurance, calculate how much is required.
STEP ON IT +
Study the pros and cons of the different types of policies.
Notice…
Your willingness to reach your own conclusions.
Your willingness to discuss this topic.
How you process the information from the advisor.
But what if …
I get confused and overwhelmed?
Go to an advisor who can explain things clearly and concisely.
Thought primers…
The topic of life insurance…
At the thought of protecting someone..
When I listen to someone calking about life insurance..
If I could trust my reactions to what is being said..
Planning for my death makes me…
When life insurance is handled by me…
