Thursday, July 2, 2009

How long do you need Life Insurance?

You would think the answer to this question would be straight forward. One might simply conclude, a life insurance policy should be in force at the time of the insured's death, so as to pay a tax free benefit to the beneficiary(s). For many years, this was the forgone conclusion.

However, the manner in which the consumer purchases life insurance coverage today is ever changing. I find that many people simply want to have coverage for a certain period of time. Common responses are, until my children get to college, until my mortgage is paid off, or until I retire. However, this line of reasoning has flaws.

In the link below, I found an insightful article that answers this question no matter what a person's age or situation is.

1 comment:

Andrea said...

Agreed. Different people do have different needs and so is their insurance policy. Some do find it difficult to carry the life insurance policy for the whole life time so they opt the term option. There are several other factors too that help in making the decision to choose between various available option.
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