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Life Insurance


									   Nothing could be more devastating than
    dealing with the loss of a loved one while
    at the same time facing the drastic
    effects of the financial loss that comes
    with it. The best legacy anyone can
    leave his family with is to ensure that
    there are provisions ready to help the
    family move on financially in case the
    inevitable happens.
   This is what life insurance does. It makes
    sure that there is a fund that the family of
    someone who has passed away can dip
    into so that they are not burdened with
    whatever financial obligations are left
   Life insurance can take care of clean-up
    expenses, loan repayments, living
    expenses, and educational expenses
    among others. Setting up a life
    insurance portfolio, however, is
    something that needs to be prepared
    ahead of time and accumulated over
    time. The earlier a person starts building
    on his life insurance coverages, the
    better it is for him and his family.
   Getting life insurance at an early age is
    always recommended. A whole life
    cash value policy or a limited pay term
    insurance policy can work well
    depending on the insured’s long-term
    plans. Single people who do not have
    families yet could start building their
    portfolio by taking advantage of the
    lower premiums they can get from a
    whole life cash value policy.
   This kind of policy will allow them to enjoy
    long term protection since whole life
    policies give coverage for life while at
    the same time having the flexibility of
    having a cash value on their insurance
    policy to tap into for emergency cash
    needs while they are still alive.
   Since whole life cash value policies have
    a savings component built into the plans,
    they carry higher premiums. Younger
    and healthier applicants for life
    insurance can start with a small amount
    of coverage and build on their
    coverage as funds become available. It
    is actually recommended to build a life
    insurance portfolio composed of several
    types of coverages.
   Those who already have limitations as to their
    available disposable income and already
    have dependents to worry about would be
    best served by a term policy with a higher face
    amount for a lower premium rate. This kind of
    policy can be taken out specifically for a
    period of time during which family members
    are fully dependent on the insured. This is best
    for people who wish to boost their insurance
    protection especially during the critical years,
    which are the years when the children are still
    in school and will be unable to financially
    provide for themselves in case the insured dies.
   Determining the amount of life insurance
    coverage to purchase, therefore, would
    have to depend on the insured’s projected
    family financial needs from the present time
    to the time when the insured’s dependents
    will be able to fend for themselves
    financially. A simple way to compute for
    this would be to consider all the family’s
    living expenses, the children’s educational
    expenses, and whatever mortgage
    payments the insured has for the year and
    multiplying the total by the number of years
    left for the youngest child to finish school.
   There are, however, other factors to
    consider such as inflation and rising cost of
    living. A personal financial advisor or an
    insurance professional should be able to
    help anyone come up with a reasonable
    amount of life insurance coverage that
    matches his own personal financial needs.

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