HEALTHY LIVING RESULTS

As a responsible person with a financial obligations and a family, you certainly realize your need for insurance. Your goal is to purchase the right amount of insurance. If you’re over insured, you’re paying too much. But that is not as dangerous as being underinsured.

A simple formula can help you roughly calculate your life cover needs. Short term needs + long term needs - resources = the amount of cover you need. Use the following steps as a guide to begin your own needs analysis. Keep in mind, this is not an exact science, so use your best judgment when purchasing your policy.

Add short-term needs up which are immediate needs you family has if your death should occur and this falls into either the final expenses, outstanding debt, or emergency expenses category.

Medical expenses a result of your fatality, funeral expenses, attorney and executor fees, probate court costs and any outstanding taxes you would be obligated are termed as final Expenses. usage of Credit cards, vehicle loans, and education loans are outstanding debts. Emergency expenses such as medical treatment and emergencies, house renovations and repair, etc are cash reserve. you will have to overvalue the final expense as none can judge absolute hidden and crisis expenses.

Long-term needs: By using mortgage/rent amount and college Fees you can now calculate your long term obligations.

Figure out operating expenses like childcare, food, clothing, utilities, recreation, and transportation for the yearly needs and times that by how long you want your insurance to cover these expenses, then add those totals together.

After figuring out how much your family needs to earn, you can begin looking for those resources needed. Consider the sum of your available savings, investments, the insurance payout for death benefits if any is offered at work. Also, see if your family qualifies for any government assistance programs.

Selling any assets would greatly change your lifestyle and the list should look at liquid assets, not home or cars.

The bottom line: Take the income necessary to meet your family’s full financial obligations and subtract from it your concrete resources to obtain a guideline for the amount of life insurance cover you will need.

U have to be insured adequately and this analysis should be taken every three years.Adding a new baby will cause you to readjust for childcare. Also college tuition expenses is very high.when you are paying this u should remember the payment because the balance decreases with every payment.

Tom Martens is the marketing director lifeinsurance-southafrica.co.za. South Arica’sleading Life Insurance portal

While none of us like to think about our mortality, if you want to ensure that those you leave behind are financially comfortable then considering buying life cover is a necessity. Certainly, looking on the internet for information and getting quote from a specialist life insurance broker is often the best way to go about taking out valuable security.

There are various forms of life cover and you have to decide first which the right choice for your circumstances is. Of the various types of life assurance, term life cover is probably the most common. In a nutshell, you choose how many years you want to be covered for and if you pass away during the policy term, you family would receive a tax free lump sum. However, the cover would not pay out if you were still alive when the cover ended.

Life insurance is not a source to pay the funeral bills as many believe. It is the amount your family would receive after your death so that this money helps them to pay bills. By taking a life insurance, you are helping your family stand financially independent in your absence.

The insurance benefit will be a great boon to your family. When there no other earning member, the coverage received would be very useful to meet out all your necessities necessary for a problem free life. It is enough to make coverage to meet out only that much what is needed. Searching through online and if need be contacting an agent is the appropriate way to find a proper insurance coverage.

The amount of premium is fixed on the basis of your age, health and the coverage you require. When height and weight are within the prescribed limits, then the premium would be at lower cost. If you are protecting this aspect with proper exercises, then everything will be alright.

One who is out of unhealthy practices, such as smoking, taking drinks, get long coverage at cheaper cost. One having smoking habit has to fully give it up for at least a year or more, to become a non-smoker. To arrive at your need to get life coverage, take 10 times of your monthly income, and from that come to a conclusion about the probable coverage you need for your family. Take into consideration all your dues, loans, mortgages, education of your children etc. before coming to a conclusion.

As we cannot predict what could happen in the future we do have to give some thought to protecting our lives against the fact that we could die at anytime. Life cover does just this and it does not have to be expensive.

Susan Reynolds is the webmaster for a leading South African Life Insurance provider. For more information visit: http://life.insurance123.co.za/