Insurance is big business. Most of us have it, want and need it. That includes life insurance although the decision is how much should we have? According to ING Life Insurance, the main purpose for a life insurance policy is to protect survivors and dependents against financial hardship. But when choosing to protect your family, a decision must be made regarding appropriate amount of life insurance to purchase.
Insurance needs as stated by the ING Insurance Agency depend on various factors which can be difficult. Some of the deciding factors are age, marital status, number of dependents and the earning potential of both you and/or spouse. Consultants are always available to help you to decide with more specific estimates per the factors of your own family unit.
According to ColonialPenn.com, a unit of insurance is first determined by a corresponding amount of life insurance benefit that you can purchase, again dependent upon age, gender and state. When you apply by going to the Colonial Penn website with the aforementioned information entered, a quote for one unit of insurance will be calculated and you choose how many units are necessary for your financial needs. A rule of thumb is to select one to five times your salary, with automatic increases as your salary increases.
Decide how many units you need and consider the requirements on savings, retirement and investment as to how much coverage is required for your financial needs. For example, a unit for your spouse may be $5000 and dependent children may be $2500. Two units insure your spouse for $10,000 and each dependent child for $5,000. How many units would meet the needs of your family? That is just a sample as seen on the Colonial Penn Website. I have personally spoken with agents from State Farm who state that a unit of insurance is normally $1000 for life insurance. If you want to be covered for $10,000, that would be 10 units of life insurance.
According to Lifeinsurancewiz.com, shop around to compare policies and benefits offered, along with unit cost for each insurance company. Different companies offer different benefits as well as cost. Also note that you can save on cost as a non-smoker, or if you choose a preferred rate due to your excellent health with less risks and lower costs per unit.
This policy is to cover a death benefit and does not reach its’ face value until two years after the policy is in force per the Wholesaleinsurance.net, and is sold per unit of coverage. Once the policy reaches its face value, the value can never go down and the premium amount will never change. This type of policy is ideal for the older customer with no required medical exam and cheap per unit prices.