Life insurance is a necessary evil as they say. Nobody wants to talk about it but we all know we need one. I am reminded of the topic because we will need to renew our insurance policy by January. And with an impending wedding of our bosom friends, I am sure an insurance talk will arise soon during our coffee meet-ups.
For the young couples out there, I am sharing these pointers before you buy life insurance.
1) The purpose of your life insurance. An example would be to provide your spouse with income for life or the more popular one - to create funds for your child's college education.
2) Evaluate how much insurance you currently have: term, permanent, or group coverage.
3) How much life insurance do you need. This will depend on the purpose of the insurance and for how long. You will also find handy insurance calculators online.
4) What kind of insurance should you buy. Term or whole life? if you are only concerned about protecting your life until your child finishes college, then the term plan will work for you.
These are the basics that you can start considering about. The important thing is, before you sign anything, you must research and ask around what type of insurance will work out for your situation.