Life Insurance 101

Having a life insurance policy is so important, I feel it should be a law in all fifty states that parents and anyone who has someone depending on them should be required to purchase it. Life is so unpredictable and leaving your loved ones to grieve the loss of you on top of no financial support should never be an option.

Deciding that you need a life insurance policy is not too difficult. There are situations where one does not need life insurance. Find out if you need a life insurance policy at:
Who Needs Life Insurance?

If you realize you need a life insurance policy, now, not tomorrow, is the time to get it and contact a life insurance company. Life insurance does not have to be confusing if you know what life insurance coverage you need. What about when it comes time to choose your life insurance company or what if you need to make a life insurance claim? You're at the right place. Just follow the step-by-step guide below and learn how to figure out what type of coverage you need all the way to making a life insurance claim.

What Kind of Life Insurance Coverage Do You Need?

Choosing the type of life insurance coverage you need can get a little personal. By that I mean the choice is dependent on each family's unique needs. There are three basic types of life insurance policies. It is important to first take the time to learn about the three different types of life insurance polices and then decide which policy will suit your needs best. The three different types of life insurance policies are:
Universal Life Insurance
Whole Life Insurance
Term Life Insurance

Once you decide what type of life insurance policy you need, you will want to get an idea of how much you would like your death benefit to be. This is the amount that your dependents will receive if you die. A quick, general way to figure out how much life insurance you might need would be to take your current annual salary and multiply that by 7. For example, if you make 60,000/per year then I would recommend buying a minimum of $420,000($60,000 X 7= $420,000). Parents have special life insurance needs. Learn more about the life insurance needs of parents at:
Parents, What Amount Should You Have in a Life Insurance Policy?

Choosing a Life Insurance Company:

When looking for a life insurance company, of course a low premium is important. But it is also important to learn about the financial strength of the insurance companies you are interested in. By choosing a company that has strong financial strength, you should have no worries that the company will be able to pay your life insurance claim when needed. Learn about different insurance company's financial strengths at
Insurance Company Report Cards: What Grade Did Your Company Bring Home?

Making the Call:

When you have chosen a list of life insurance companies to contact, have all personal information available about whoever is getting the life insurance policy. Names, social security numbers, addresses, phone numbers, and places of work will be helpful to have on hand. Also, be aware that if you are getting life insurance from anywhere else but your employer, you will probably have to take a medical exam. Different life insurance companies test for different things during the medical exam and charge different premium rates for smokers. So, if you are a smoker you will want to search around for a life insurance company that has the best rates for smokers. Learn more at: Your Life Insurance Medical Exam

Understanding Your Life Insurance Policy:

Now that you have your policy, take the time to learn about it. If you have questions about your life insurance policy, don't hesitate to contact the insurance agent who sold you the life insurance policy. It is much easier to know answers to your questions before you have to make a claim. Read some frequently asked life insurance policy questions at:
Life Insurance Policy Frequently Asked Questions

Making a Life Insurance Policy Claim:

After a loved one dies, filing the life insurance policy claim can be confusing and difficult but can relieve great financial burdens for your living family. Fortunately, the process is not difficult. Here is a checklist of steps to follow when the need comes to contact a life insurance company and file a life insurance policy claim.