What is life insurance

What is life insurance, and whether you need it? First, what is life insurance? In a simple, the money is used for insurance companies to pay for insurance to the parties that appointed, if we died. A life insurance policy can be a way that is not expensive to replace your income if you die, this is not an investment and should not be used for retirement or school fees for children. There are several investment options to meet this demand. Do you need insurance? This depends on your answer to question 2 is: 1. When there is a case of death, whether there are parties who suffered losses or economic ills. If the answer is "Yes", then resumed by the second question, 2. Do you care? If you care, then means you need life insurance. How many you need? When you decide that you need life insurance, you must determine how much the insurance you need. Of course this is a very subjective decision. A general guide is that you should get at least 6 times annual income in life insurance page. But in deciding what is best for you, you may also consider other obligations that must be completed in whole or in part, when you die. Obligations such as the installment of the house, a debt that has not been resolved and the need for children to study for the future. Tuition for state universities ranges around Rp.10 million (?) Annually, while for private universities ranges Rp.20 million (?) A year. Can estimate the cost of course make sure you take into account the annual inflation factor. Which type is best for you? There are two basic types of life insurance: Berjangka and Permanent / But whatever life. A life insurance is pure insurance, while permanent insurance (also known as "Cash Value" or "whole life") contains elements of savings. Maybe you will be heavily influenced by the wiraniaga and other energy marketers. But based on financial factors, Berjangka is often better choices, and the following is the reason: * Clearly. If you die during the police are still active, the heirs will be paid. As simple as that. * Cheap. You do not need to pay extra funds for cost savings or investments. And the competition is very competitive market for insurance measure, many companies try to keep prices remain low. * Easy. With only a small business you can get a comparison and the confidence that you get a good product. * No function as investment. Many of the better ways to save and invest. * Only pay for what you need when you need it. You usually only need protection for a certain period of time (for example, until your children graduate course) Benefits for permanent insurance are usually on tax evasion on income from a savings policy. Here is the reason: Many policies that have cash value insurance costs and management can reduce the high profits obtained, more than the tax savings. You may prefer to retain permanent police for 15 to 20 years, before you get when you buy more insurance and invest the difference to be a premium on investment with the same interest. How expensive cash value in the policy instead of permanent policy measure? A healthy man aged 30 years can be expected to pay U.S. $ 300 per year for the annual policy worth U.S. $ 300,000. For the same amount of insurance, policies that have cash value will be worth U.S. $ 3,000 or more annually.
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