By Lauren Cappelli
Putting a price tag on different things seems like a pretty easy task, but what is it like putting one on your life? Purchasing life insurance is like putting a price tag on your life. There are many factors that a person must take into account when coming up with the final amount. This is often a difficult task due to the fact that you are planning for your death; however it is a crucial part to your personal financial planning.
Some of the most important things to consider when formulating the amount of a life insurance plan are your number of dependents, marital status, your earning potential as well as your spouses, and whether or not you and your spouse are employed. The number of dependents is generally the most important factor. You want to make sure they are taken care of and protected if you pass away. This could also include a spouse who is unemployed who depends on your income.
What happens if you are single? This question often comes up and many people are under the assumption that they don’t need life insurance. If a single person leads a simple life and doesn’t have a mortgage then a policy may be unnecessary. However, if you do have a mortgage or parents that may need to be dependent on you in the future a life insurance policy is a good idea.
Nobody can plan their lives and know when they are going to die. However, you have the ability to plan to provide for your loved ones if something unexpected did happen. Life insurance should be an important part of your personal financial plans.
Nobody can plan their lives and know when they are going to die. However, you have the ability to plan to provide for your loved ones if something unexpected did happen. Life insurance should be an important part of your personal financial plans.
Sources:
http://articles.moneycentral.msn.com/Insurance/InsureYourLife/HowToAssessYourLifeInsuranceNeeds.aspx
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