Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

What is Life Insurance Know About It?

By Elissa Joyce Subscribe to RSS | December 14th 2011 | Views:
loading
 
  



Life insurance is never something which people enjoy talking about as it's often morbid and involves confronting the only certain event in your life; death. But you shouldn't put it off as you want to make sure that your loved ones are cared for financially after you die, whether it is sudden or expected through illness over an extended period of time. But what is life insurance, and how much is this going to cost you?

Well there are two important things which come into play here:

a. The concept of life insurance itself

b. Finding out how much life insurance you need in order to ascertain the cost

The Concept of Life Insurance

Life insurance by definition is a central pool of money, which is created by you so that it will be paid out to your family should you die. The amount you pay into this pool of cash on a yearly basis hinges on a number of factors which come into play, but the principle is the same as the only thing which differs is the amount you pay.

A Life Insurance Calculator

If you are learning about life insurance through this article then you have probably never heard of a life insurance calculator before. A life insurance calculator is not a complicated concept to get your head around as all it is is a calculator which is designed to calculate how much life insurance you will need, and by implication how much you will need to pay out on a yearly basis. If you want to use one of these calculators then you will be able to find one of these on most insurance company websites free of charge.

How Do I Calculate How Much Life Insurance I Need?

Calculating how much life insurance you need is not a difficult process and should only take about an hour at the very most, assuming you don't already have the required information on hand. In order to calculate this you will need to know a few things prior to actually using the calculator as these are the factors which will determine how much life insurance you really need.

First you must find out the cost of your death in the short term. Factors which are included in this area include the cost of your funeral and burial, unpaid medical expenses, and any outstanding debts. Determining the cost of your funeral and burial is not a difficult process because you can often plan both of these years before you actually die, but the others are more difficult as it takes some smart guesswork.

For example, it's wise to look at your family history and any previous health complications to predict how much any unpaid medical expenses may cost you whereas debts are more difficult as you have to try and plan financially which could take a while.

If you have made it through this difficult part then the next part is estimating how much replacement income your family may need if you die. The way to do this is to look at your income and then multiply it by the number of years you have left until retirement. You can factor in the average inflation rate if you like, but it's often easier just to leave that out. Add this to the cost of your immediate death.

Add any costs such as college tuition to the pile as these are known as your additional expenses, but if you are not sure if you will need this then add it anyway just to be on the safe side. The final aspect you must take into account is the deductibles such as saving accounts and retirement funds.

Since you finally have a number you can now add the numbers into the life insurance calculator and you should have a fairly accurate number for your life insurance. If you want a more accurate estimate, though, then it's wise to visit an insurance professional.

Elissa Joyce - About Author:
To find the answer to the very important question what is life insurance or simply to obtain some competitive quotes, visit lifeinsurancegroup.com

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/home-business-articles/what-is-life-insurance-know-about-it.htm

Related Home Business Articles Subscribe to RSS

IBS imbalance your life with number of troubles
Published by Healthprogram on June 14th 2012 | Business

Irritable bowel syndrome (IBS) is a chronic disorder leads to cramping, changes in bowel movemen...
 
Uses of a packaging box in daily life
Published by John Davis on November 25th 2011 | Business
Packaging boxes play a vital role in our lives. They are found all around us, from homes to offices....
 
I phone application development changes the life of people
Published by Iphoneipadandroid Applicationdevelopment on February 26th 2012 | Business
Booming of the business of Iphone application brings a great potential in the field of communication...
 
Hot tubs bath for healthier and happier life
Published by Ashish Pandey on December 24th 2011 | Business
Hot tubs bath can be very refreshing for one and all. These can allow you to get a complete facelift...
 
Sitandgoshark Vouchers/codes are a great way to save on the necessities in your life
Published by Gayathri SriValliDevi on April 27th 2012 | Business
These website offer an interface for people to share Sitandgoshark Vouchers/Sitandgoshark Voucher Co...
 
A perfect example for a lavish life style
Published by Deepti on March 21st 2012 | Business
Mohali real estate offers a modern and elegant life style and great commercial options for investors...
 
Why Boiler insurance is Important No Matter What the Time of Year
Published by David Samson on March 23rd 2012 | Business
This articles looks at reasons why it is important to take out boiler insurance even when the weathe...
 
Go to a measurable life that will be the reason of your success one day
Published by Dion Sivla on April 4th 2012 | Business
They are the one who actually invented the measurement scoops which will actually helps the consumer...
 
Importance of recycling in our everyday life:
Published by Jullia on December 15th 2011 | Business
Recycling is a process through which waste products are collected and treated in such a way so as to...
 
Factors involved in deciding the cost of long term care insurance
Published by Ashish Pandey on March 28th 2012 | Business
You need to keep in mind some factors in order to decide the cost of long term care insurance. Have ...
 
Ask a Product Design Consultancy to bring your dreams to life
Published by James Blee on June 19th 2012 | Business
Some of the greatest inventions have begun life with a simple flash of inspiration. It’s what you ...
 
Choosing the best life insurance quotes amongst all available
Published by Alex Alben on December 14th 2011 | Business
Not every one understands the importance of life insurance policies. But those who understand know t...
 
Increase the shelf life of perishable goods
Published by Jennie Garth on July 31st 2012 | Business
Fast paced urban life has very less time, to go for freshly prepared products and households commonl...
 
How to get Alaska auto insurance
Published by Insurance Inde on January 13th 2012 | Business
Everyone seeks for the protection of their autos and if you are a native of Alaska then protection l...
 
Go Karting Birmingham is a great way to have the ride of your life
Published by Mary Porter on June 27th 2012 | Business
Have you put Go Karting Birmingham down on your list of things to do this year? If not, what’s st...
 
Connection coaching for better quality of life
Published by Ashish Pandey on June 7th 2012 | Business
Connection Coaching can offer you a good life with constant evolution. It can be great for your over...
 
Role of electricians in the industries and our day to day life
Published by Ema Sis on April 5th 2012 | Business
Electricians play a significant function within our life to make sure safety along at the wiring app...
 
Social Security benefits Lincoln ne: providing benefits for survival of life.
Published by Mchenry1 on April 10th 2012 | Business

Social security is mainly a social insurance program that provides the protection against social...
 
What can be done to enhance your camera battery life?
Published by Michael Thompson on June 18th 2012 | Business
As we are aware of the various electronic devices that use batteries as their source of power, so do...
 
Honda Parts for long life of vehicles
Published by Julia Roger on July 17th 2012 | Business
The spares belonging to reputed brand has the ability to ensure consistent maintenance like spark pl...