| |
Purchasing Insurance
By Jeff Lakie
Insurance is an important part of any comprehensive financial plan.
Insurance answers the question, "what if the unthinkable happens?¡±
But too many people avoid it because they see the expense but not the
benefit or they simply don't want to think about their own death or the
death of a loved one. But insurance is a vital part of any financial plan
and should be considered for everyone.
For most people, the best course of action when adding insurance to
their portfolio is to ask these two questions:
What is a permanent expense in my life?
What is a temporary expense in my life?
The answer to these questions will help you determine what kind of
insurance you need.
For example, funeral expenses are a permanent expense because they
are always there. So you'll want to buy a small ¡°Whole Life insurance
policy¡± to cover funeral expenses. (It's called ¡°whole life¡± because the
policy is going to cover you for your whole life¡ a permanent
insurance policy to solve a permanent expense). If you want to leave a
legacy for a charitable organization, you may want to take out a whole
life policy for that as well.
Your children's college education is a temporary expense, since
(hopefully) they will stop going to college at some point, so if you
decide to take out a policy to cover their education if you die, the term
should end when the youngest child attends college. Another
temporary expense is your mortgage. Match the term of your term
policy to the time it will take you to pay off your mortgage.
Some other expenses to consider include
The care of an elderly parent is a temporary expense so it is best
covered by temporary insurance.
The cost of a car is arguably a permanent expense since you will
always have a car and car insurance and perhaps the necessity of
buying a new one periodically.
The cost of a young widow to stay at home with the children to raise
them is a temporary expense since the children will grow up and be
able to support themselves at some point.
Many people avoid thinking about insurance. When they finally do
decide to give it some thought, it is such a wide-open industry requiring
specially licensed agents to help you that it is difficult to know where to
begin. Before contacting an agent, sit down with your loved ones (the
ones who will be directly affected by your unfortunate passing) and
decide what permanent and what temporary expenses exist in your life.
About the Author
Jeff Lakie is the founder of Insurance Resources a website providing information on Insurance
Article Source: http://www.simplysearch4it.com/article/10263.html
| If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/10263.html" as shown above and make it hyperlinked. |
| Some other articles by Jeff Lakie | What is asbestos?
Asbestos is a naturally-occurring substance that is mined from the
ground and woven into fibrous material. Asbestos, by its very nature, it
heat resistant and it does not conduct heat ...
Consider this when searching for a hotel
People travel for many different reasons, for business or pleasure.
When you're traveling you can find many good hotels that provide
good value for your dollar. But there ...
Things to remember when renting a hotel
Some people rarely stay at hotels and other people, like ¡°road warrior
business people¡± stay at hotels frequently. Here are some ideas from
...
Things to watch out for when buying a diamond
We've heard that diamonds are forever. But did you know that your
diamond could disappear right before your very eyes? It's true! If
you're not careful it could happen ...
How to restore old jewelry
Over the years you can acquire a lot of jewelry. Some of it you may
not wear very often, while ...
Keep your jewlery safe
The best place to hide something is right in front of someone's eyes.
When you have jewelry that should be kept in a safe place, but you
...
|
|
| |
|
|
|
