Which Life Insurance Policy Is Right For Me?

When buying life insurance, you want a policy which fits your needs without it costing too much. First, you should decide on how much you will really need, how much you can afford to pay, and the type of policy you want. Second, find out what various companies charge for that specific kind of policy. MCC Insurance Agency will be willing and able to help you with each of these shopping steps.



One way in deciding on how much life you will need is to figure out how much cash and income your dependents will need if you were to die in the near future. Think of life insurance as a source of cash needed for final exprenses, paying off taxes, mortgages and/or other debts. Life insurance can also provide income for your family's living expenses, educational costs, and other future expenses. Your insurance policy amount should come as close to making up the difference between 1) what your dependents would need if you were to die now, and 2) what they would actually need.

There are three basic and current life insurance policies: term insurance, whole insurance, and endowment insurance. The following is an outline in which the important features are noted.


TERM INSURANCE

• Coverage protection: for a "term" of one or more years, usually 30 years being the maximum
• Death benefits: paid only if the policy owner were to die within that term of years
• Renewable: some are renewable for more additional terms even if the olicy owners' health has changed
• Convertible: before the end of the conversion period, the policy owner may trade the term policy for a whole life or endowment policy even if he/she is not in good health

WHOLE LIFE INSURANCE

• Coverage protection: death protection for as long as the policy owner lives
• Cash values: a benefit the owner does not lose when he/she stops paying the premiums
• Loan: the cash value may also be used as collateral for a loan

ENDOWMENT INSURANCE

• Income benefit: pays a sum or income to the policyholder if he/she lives to a certain age
• Death benefit: if the policy holder were to die before that certain age, the death benefit would be paid to the designated beneficary or beneficiaries

In summary, do not buy life insurance unless you plan to remain faithful to it. A policy can be a smart buy when hels for 20 to 30 years, but it can be very expensive if you decide to quit during the early years of the policy.

At MCC Insurance Agency can aid you in choosing the right amount of life insurance and kind of policy you want and we will provide you with quotes from several companies for the comparison of similar policies.

When you finally receive your new policy, be sure to thoroughly read through it and inquire with the agent on anything that you do not understand. It is also important to review your life insurance policy every few years or so to keep up with income changes and life responsibilities.