When considering an existence insurance policy, carefully examine all of your options before buying. Note that young children shouldn’t be named as beneficiaries, as the money would be controlled by a custodian. As far as how much coverage you should buy, it’s good to get at least eight or ten times your annual income. Be wary of complete-life coverage, which has higher fees. Also, if you find yourself in financial straits, resist the urge to cash in your own policy. It’s a poor use of resources.
- Don’t put children as the beneficiaries of life insurance. The funds will be managed through the state and not given directly to them.
- Try not to cash in on your own life insurance policy. Although this is very tempting, it’s better to keep your policy and find other ways to raise the funds.
- Phrase life insurance coverage is better because the fees are less. The agents will push you for full lifetime coverage but you can save a lot here.
“While you are thinking about exactly how much life insurance to buy, it’s smart to get a minimum of eight or ten times the volume of your annual income.”