subject: Affordable Life Insurance Quotes - Getting Enough Coverage [print this page] Knowing the extent of cover you need is important to avoid under or over coverage. You lose money either way. It is very important that you know the extent of coverage you need and how you can enjoy affordable cover with free life insurance quotes.
Some simple way to arrive at a reasonable coverage amount have been suggested. Your ability to pay your premiums conveniently would be considered along with the coverage amount. Some people calculate based on their family's monthly money requirements. Other people use an amount ten times there yearly earnings. There are other more confusing calculations that others use to arrive at an amount. We would look at a simple way to arrive at an adequate amount.
We base this on how much your family's monthly need amounts to. This of course means that you would need to be reviewing your policy as your family needs changes. An example is the addition of a baby with its attendant cost. In this plan, the funds paid would have to be invested. If after your calculations, you find that your family requires $2000 to live well monthly, you would find search for an investment plan which MUST be very low risk and have a minimum return on investment. Here's how it works. You find the investment plan, know the minimum return on investment let us assume it is 10% annually. You want that 10% to be your family's yearly requirement which following our example would be $24,000. To get the $24,000 my family would nee yearly, I would need to invest $240,000 at a minimum return on investment of 10%. That's it.
You would agree that this looks very simple. I know many financial advisers may not like this ultra simple approach. The issue is that it is simple enough to be a plan for a lot of people.
Let us look some more recommendation.
Term life policy holders should ensure that they are not paying more than 5% of their monthly income as premium. This can be up to but not more than 10% for whole life policy holders with cash value. You don't have to force yourself if you do not understand all these numbers. You have the option of discussing with a financial adviser who can help you come up with a plan tailor made for your financial situation and needs. You have no reason not to have a life insurance coverage. If it is the cost, go to quotes comparison sites. Get affordable life insurance quotes from these comparison sites for comparisons. You would get free life insurance quotes to help you find the best rates for the coverage you need.
by: Chimerenka Odimba
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