Tuesday, January 26, 2010

Best Life Insurance Depends On Some Factors

Things to consider when getting life insurance: age, budget, and presence/absence + number of dependents.

For example, if you're young and single, it's better to get whole life insurance. It's a bit more expensive but in the long run it's gonna be more practical. That's because you're more likely to be at the prime of your life, with no major illnesses -- which means lower premiums which you lock in.

If you're already nearing retirement but you still have dependents, a term life insurance may be more budget friendly for you since whole life insurance would be much more expensive for you, given that you are already considered to be more at risk for illnesses.

I do not really see the need for getting insurance for children since they do not provide for me -- I provide for them. There is really no loss of income for the parents if the kids (I'm talking non-earning minors here) pass away. And, really, the chances of that is pretty small. Hence, parents getting life insurance for their kids is not really very practical.

Of course, I'm not an expert. I believe your estate planner or financial planner will be in a better position to recommend the best policy for you.

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A part time ophthalmologist, part time micro business owner, part time graduate student and FULL TIME MOM struggling to find balance in the confusing world of multitasking :)