Mr Insurance

Let’s be honest. The topic of life insurance isn’t exciting or glamorous, but it is important. In fact, many experts consider life insurance to be the cornerstone of good financial planning.

But how do you know if you need life insurance? How much is enough? What kind of life insurance policy is best for you?

Answering these basic questions about life insurance will help to simplify the shopping process and ultimately allow you to select the best policy to secure your family’s future for years to come.

Establishing Your Needs

To clear up any misconceptions, life insurance is designed to protect your loved ones from financial loss in the event of your death. Knowing this, it’s important to establish whether you need life insurance and how much you should purchase.

According to MetLife you generally need life insurance if:

* You have a spouse * You have dependent children * Relatives or elderly parents depend on your income * Your retirement funds are not enough to provide for your spouse’s future * You own a business * You have a large estate

The beneficiaries of your life insurance policy can use the proceeds from your life insurance to:

* Pay for last expenses and funeral costs * Cover estate taxes (if applicable) * Pay off existing debts (mortgage, car loan, credit card debt) * Pay for everyday expenses (food, clothing, childcare) * Put towards your spouse’s retirement fund * Donate to charity

If you don’t have dependents, you may still wish to purchase a life insurance policy to avoid becoming a financial burden to your loved ones in the untimely event of your death. Young singles also benefit from purchasing life insurance while they’re young and healthy, allowing them to secure a low premium for years to come.

Choosing a Dollar Amount

Figuring out how much life insurance your loved ones would need to maintain their quality of living can be tough. Generally speaking, experts recommend purchasing between 5 and 10 times your annual salary. But, as MetLife points out, your exact need for life insurance will depend on your personal and financial circumstances.

You can get a ballpark estimate of your life insurance needs by first totaling the funds your family would need for the abovementioned items (funeral costs, daily living, etc.). You can find helpful worksheets online that will help you organize and come up with this list of expenses.

After you’ve totaled your expenses, take stock of the funds you have in cash, savings, retirement accounts, bonds, property, pension and Social Security. Subtracting your financial resources from your expenses will give you a rough idea of how much life insurance you should purchase.

When it comes to choosing how much life insurance to purchase, it’s a good idea to get an idea of your needs before buying a policy-but your licensed life insurance professional will undoubtedly help you choose a dollar amount that accurately reflects the needs of your beneficiaries.

Selecting a Policy

Generally speaking, there are two types of life insurance: term life insurance and permanent life insurance. The type of policy you select will depend largely on your life insurance needs and what resources you have to pay life insurance premiums.

Term Life Insurance Term life insurance, as the name suggests, will cover you for a specified amount of time, which means the insurer will only pay out a death benefit if you die during the term of your policy.

According to the Insurance Information Institute (I.I.I.), most people purchase a 20-year term policy, although smaller terms are available. Of course, you can renew your term life policy after it expires, although your premiums may increase as you age. But all in all, because of the “temporary” nature of term life insurance, policies are generally much cheaper and are therefore an attractive option for young people and families with a limited income.

Permanent Life Insurance On the other hand, permanent life insurance, as you might have guessed, is permanent. A permanent life policy will pay out a death benefit whether you die tomorrow or in 60 years.

Permanent life insurance is also an appealing option for many because of the added benefit of the policy growing on a tax-deferred basis, which can grow to be fairly large over time. As a policyholder, you may be able to borrow against this cash value while alive, which has been of great help to some. Of course, most loans need to be paid back otherwise they will be subtracted from the death benefit, and your beneficiaries may have to liquidate assets to pay back the loan.

Nonetheless, permanent life insurance offers a wide variety of saving and investment options. Because of this, policies are generally more expensive than term policies, which may be hard for young adults to handle.

Your life insurance professional will help you decide which type of policy is best for your life insurance needs-and your budget. But researching these policy types beforehand can help you narrow down which policies appeal to you.

IOWA Life Insurance Company offers life insurance, travel accident insurance

As the insurance market undergoes stiff competition, there is no assured way of getting continuous leads at all times. Besides, people are becoming more aware of issues by the day, making it more difficult to get them to buy insurance. In such a scenario, pre-qualified life insurance leads are better than other types of leads.

Many life insurance lead companies adopt various strategies to get customers to fill out a form on their websites or at their physical locations. These are generally people who are somewhat aware of the importance of life insurance and who also roughly know what they want. These people often search for the best insurance policy on their own. The Internet has become a good place to start searching for life insurance as well.

Once there, in order to tap into the wealth of information available on a particular site, or just to know whether the person is eligible for a particular life insurance policy or not, they are asked to fill out a quick online form. This form is then analyzed by the lead company, depending on the needs of the customer, required conditions, and the prevailing life insurance business codes. They segregate these leads and investigate who is extremely interested (hot prospects) in a policy and who is not. Such leads that have been analysed for suitability are known as pre-qualified life insurance leads.

Pre-qualified life insurance leads are very important methods of getting prospective customers for an agent. These leads are considered highly important by agents because here the customer is actively scouting for life insurance and may already be partially convinced about a particular policy.

This means that if the agent plays his cards right, there are very good chances that he or she would be able to convince the customer to buy a policy. In the competitive field of life insurance, a pre-qualified life insurance lead comes as a blessing for the agent.

New Jersey Life Insurance Guide and Calculator, easily decide how to protect what matters to you most. Get a term life insurance quote now!