Buying Life Insurance

When a new baby comes along, you and your spouse will probably want to make sure that if something should happen to either one of you, the baby will be financially secure. It is popular for new parents to get life insurance for peace of mind. Here are some different kinds of life insurance policies:

• Term
• Declining Balance Term
• Whole Life
• Variable Life
• Adjustable Life
• Universal Life

Another important part of choosing life insurance is determining how much insurance you really need. There are a few popular ways of figuring out how much life insurance to get. One way is to get between 5 and 10 times your annual salary. Homemakers should get life insurance, too. If something should happen to the homemaker, it would get costly to hire a housekeeper, babysitter, cook, party planner, chauffeur, etc.

You can also determine your unique income replacement needs as they may vary greatly depending on your age. So, if you have a young family, you would probably need a larger amount of life insurance to sustain them through the years. If you are an older person, your family probably would not need as much life insurance to cover expenses.

You can determine how much you currently spend by figuring out your net income, after taxes, minus how much you money you have left over. You will want a death benefit amount which will cover the amount you spend each year multiplied by several years. You can also add one-time expenses like paying for you child's college education, funeral costs, medical costs, etc.