Q: How much life insurance coverage do I need?

A: A rule of thumb is to buy life insurance equivalent to six to eight times your annual gross income. Although, 10-15 times would not be considered excessive or uncommon especially for young families. You should consider individual factors such as lifetime income potential, ordinary expenses, extraordinary expenses, debt, dependent care, college education for dependents, mortgage protection, and federal estate taxes.

Q: Will my beneficiaries have to pay income tax on the death benefit?

A: No. Death benefits are tax-free to your beneficiaries. However, if your beneficiaries die before you do, the death benefit will be paid to your estate and may be subject to estate taxes. That's why it's important to keep your beneficiary information up-to-date. It's also a good idea to name a secondary, or contingent, beneficiary in case you outlive your primary beneficiary.

Q: If I don't have any dependents, do I still need life insurance?

A: Even if you have no dependents now, you can lock in lower premium rates for permanent life insurance by buying a policy while you're young. Premium rates are generally determined by age - the younger you are when you buy your policy, the lower your rates will be.

Q: How much will my premiums be?

A: Premium amounts vary from carrier to carrier. Because premium rates are generally determined by age, and health factors, the younger and healthier you are, the lower your rates will be. For more specific information about policy costs, request a quote.

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