There are many types and terms related to life insurance, but it is one of those benefits or “life savers” that sometimes we do not pay enough attention to.

Is it worth it to purchase life insurance? This can be answered with another question: Do I have relatives or people whom I care about, and who could not survive without my income, or who would suffer financial difficulties if I ceased to exist?

Life insurance cannot only provide income to beneficiaries in the event that the insured dies, but it can also help beneficiaries pay for the costs of the funeral (let’s face it, dying these days can be very expensive). It can also be useful for costs involving medical attention that were not covered by health insurance as well as pending debts and other expenses.

Once you consider all these elements to determine if you need to purchase life insurance, the second step would be to decide on how much coverage you will need. For example, you could need to take into account whether you want to cover annual costs of the spouse and surviving children and for how many years after death, educative costs, funeral costs, debts, leaving contingency savings mortgage payment, taxes, and so on. In summary, how much money will surviving people need every year in order to maintain certain life level.

Experts suggest purchasing life insurance by a quantity equal to 4 to 7 times the amount of annual income of the insured. However, there is no better rule than really doing the math. For instance, approximately, an insurance of 250,000 dollars could allow you to take 20,000 dollars initially to pay for costs of death of the insured, and then provide an income of 45,000 dollars per year for a total of 5 years. Those 250,000 dollars, generating interests at a 5% rate, could produce an income of 12,500 dollars per year without the need to touch the capital.

Whatever the case, life insurance could make the difference between the survival or economic ruin of the insured’s loved ones when she dies.

View more Free Content by covermehealth at GetYourContent.com

Visit CoverMeHealthInsurance.com for all you need to know about Health Insurance Coverage.

Related News

Videos Examine Debate Over Abortion Debate In Health Reform, International Women's Day
The following summarizes selected women's health-related videos. Uncertainty Surrounds 'Stupak Dozen': On Wednesday, MSNBC host Rachel Maddow challenged Rep. Bart Stupak's (D-Mich.) claim that he has about twelve lawmakers who will vote against the Senate health reform bill if it doesn't include more restrictions on abortion coverage...

Sebelius Attacks Health Insurers, They Fight Back
Health and Human Services Secretary Kathleen Sebelius "pleaded with insurance companies on Wednesday to scrap their campaign against President Obama's health care bill and to work with the White House to pass it," The New York Times reports. "Speaking at the annual policy conference of America's Health Insurance Plans, a trade group, Ms...

Hospitals Cope With Losing Money
Kentucky's Jewish Hospital and St. Mary's HealthCare is eliminating 500 jobs this month. The layoffs represent the first large-scale cuts in a Louisville-area hospital system since the recession began. Louisville Courier-Journal: The cuts come because of "lower patient volume and a growing number of uninsured patients brought on by the lingering recession...

State Overhaul Fears, Rising Costs, Medical School Expansions
The New York Times: "The General Assembly became the first state legislature to approve a measure that bucks any effort by President Obama and Congress to carry out a national health care overhaul in individual states." Numerous Democrats joined the Republican majority to support the measure 80-17 in the House of Delegates (3/10)...

Today's OpEds: Rove On Reconciliation, An Imagined Plea From Kennedy, Vulnerable Hispanics
The Trouble With 'Reconciliation' The Wall Street Journal House Democrats would be foolish to trust a process that has deeply alienated the American public. Republicans know that and are determined to make House Democrats think hard about the price they will pay for passing this health-care monstrosity (Karl Rove, 3/11)...

House Dems Discuss Abortion, Other Non-Budget Issues While Awaiting CBO Score On Health Reform
On Wednesday, House Speaker Nancy Pelosi (D-Calif.) said lawmakers are focusing on resolving issues that fall outside the scope of the budget reconciliation bill --legislation Democrats are drafting that would include changes to the Senate health reform bill (HR 3590), CQ Today reports...

Health Bill Deal 'Close' Though Some Democrats -And All Republicans -Hold Out
Congressional Democrats, reportedly closing in on a final health reform agreement, are seeking to alleviate concerns of reluctant members. The Associated Press: "It will come down to a phenomenal effort by congressional leaders and the White House to win over skittish lawmakers after a year of incendiary debate ...

PhRMA Spends $6.3 Lobbying In Fourth Quarter, Slight Increase From Year Before
The Pharmaceutical Research and Manufacturers of America spent $6.3 million lobbying Congress and other government arms on health care in the fourth quarter of 2009, The Associated Press reports. PhRMA "spent just 2 percent more than the $6.17 million it paid out for lobbying in the year-ago period. The group's members include drug giants Pfizer Inc., Merck &Co...

Does Medicare 'Doughnut Hole' Spur Increase In Foreign Drug Imports?
Medill Reports: "Unless federal legislation closes the Medicare coverage gap colloquially known as the 'doughnut hole,' seniors may opt for online drug imports to alleviate steep prescription costs. ... 'As seniors start falling into the doughnut hole, they are going online to find deals on prescription drugs, whether they're based in the U.S...

Survey: Employers Plan To Shift More Health Costs To Workers
News outlets report on new trends in health insurance for employers. The Washington Post: "Most big employers plan to shift a larger share of health-care costs to their workers next year, according to a survey to be released Thursday. ...