Personal Budget Training: Death Comes Unexpectedly

Friday, May 30, 2008

Death Comes Unexpectedly

Yes, this great line from the movie Pollyanna, in which the preacher yelled at the congregation. Well it is true, it does. Are you ready.

Sadly, over 70% of the life insurance policies sold today are cash value policies. A cash value policy is insurance that packages insurance and savings together. Do not invest money in life insurance, since the returns are terrible. An insurance agent will show you some excellent projections, but none of these policies perform as projected.

When you have kids, you need to take out a term-life insurance policy that is 10 times your annual take-home pay. The point is to have enough money to replace the income of the deceased spouse.

This is even true for stay-at-home moms and dads. They provide economic benefits by doing the majority of the cooking, cleaning, shuttling the kids, so do not forget to take out some life insurance on stay-at-home parents.

Here is a great place to view term life insurance comparisons.

Labels: insurance