The Best Life Insurance For Your Family – The 5 Biggest Mistakes and How to Avoid Them
Everyone wants the best life insurance for their needs and in this article I’m going to show the five biggest mistakes people make when trying to get low cost life insurance. Armed with this knowledge you won’t fall into the trap that so many people do of either not getting the right kind of family life insurance or they don’t get the right amount. This way you’ll have the peace of mind knowing that you have the best life insurance available for you so that your family is taken care of with low cost life insurance. So without any further adieu let’s get started.
The first mistake people make in trying to get the best life insurance for them they insure the wrong people. In general kids and seniors do not need insurance. The purpose of family insurance is to act as a replacement for someone’s annual income and since kids and retired people don’t earn that much income they don’t need to be insured.
The second mistake a lot of people make in getting the best life insurance for them is they don’t have enough insurance to cover the replacement of a family member’s income. The rule of thumb is that you take the annual income and multiply it by 10 and that would be the amount you’d need to replace their income. For example if the annual income is $50 000 times 10 equals $500,000. You’d then take the $500,000 and put it into a conservative mutual that would give you an average annual rate of return of 10 percent, which is $50, 000. Which is what the annual income was in the first place?
The third mistake people make in getting the best life insurance for them is neglecting to include any outstanding debts that they’d like to take care of for example a mortgage or credit card or bank debt.
The fourth mistake people make in getting the best insurance for them is they get a cash value insurance policy instead of term insurance. Cash value insurance, otherwise known as whole life or universal life is just plain too expensive. It’s supposed to include an investment portion which really doesn’t work. I’m not going to go into the details here but leave it for another post or if you want to research it yourself go to any book about home finances or you can look it up on the internet. Term insurance is what all the experts recommend. It’s the cheapest by far and offer 3 to 8 times the coverage that cash value does. It’s funny that the only people who recommend cash value insurance are the people who sell it.
The fifth and biggest mistake that people make in getting family insurance is that they put off getting it. You owe it to your family and to yourself to make sure that your family is properly looked after if something happened to you. And if you follow my suggestions you’ll not only get low cost insurance but also the best insurance for you and your family. Now go and get a free insurance quote today. You’ll feel better and so will your family knowing they’re properly taken care of.