Life Insurance FAQs

Q: Why Should I buy Life Insurance?

Answer:    Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations:
            Replace Income For Dependants
            Pay Final Expenses
            Create an Inheritance For Your Heirs
            Pay Federal Death Taxes and State Death Taxes
            Make Significant Charitable Contributions
            Create a Source of Savings

Q: What is a Beneficiary?

Answer:    A beneficiary is the person or entity you name in a life insurance policy to receive the death benefit. You can name:

• One person
• Two or more people
• The trustee of a trust you’ve set up
• A charity
• Your estate

If you don’t name a beneficiary, the death benefit will be paid to your estate.

Q: How Much Life Insurance Do I Need?

Answer:    In most cases, if you have no dependents and have enough money to pay your final expenses, you don’t need any life insurance.

    If you want to create an inheritance or make a charitable contribution, buy enough life insurance to achieve those goals.

Q: What Are the Types of Term Insurance Policies?

Answer:     Term insurance comes in two basic varieties—level term and decreasing term. These days, almost everyone buys level term insurance. The terms “level” and “decreasing” refer to the death benefit amount during the term of the policy. A level term policy pays the same benefit amount if death occurs at any point during the term.

Q: How Can I Save Money On Life Insurance?

Answer:    There are ways to save money when buying life insurance, but they don’t always entail paying a lower premium immediately. As your top priority, look for a policy that meets your needs. Buying the wrong benefits for a low premium is a waste, not a saving

Informaton Provided By Insurance Information Institute
http://www.iii.org