Life

When you're looking into general life insurance, the sheer number of policies out there can feel overwhelming. Add on to that the different types of life insurance available and the various factors that come into play with the different types of policies and it's easy to feel like you'll never be able to make a good choice.

Daunting though it may seem, choosing life insurance does not have to be a frustrating process. If you know the answers to the questions below, you'll be able to sift through the available policies with ease until you find one that will work well for you.

How Much Can You Afford?

The first question you'll need to ask is how much you can afford to spend every month or year on premiums. In general, life insurance premiums are paid monthly, though some companies will allow you to pay every six months or once a year if that is better for you.

When calculating this number, make sure you consider all of your monthly expenses. You don't want to neglect any of these to make payments on your insurance policy. In addition, make sure that you're able to continue setting some money aside as savings. Purchasing a life insurance policy should not be a burden on your or your family, but instead should relieve you of financial concerns for your heirs after you die.

How Much Do You Need?

Next, you'll need to consider how much insurance you need. There are different ways to calculate this number. Some rules of thumb say that you need enough insurance to cover any tax liability that your heirs will owe on your estate. Others say that you need to provide 1-2 years of your salary for your beneficiaries.

If you are the sole breadwinner or other people count on you for their financial security in general, life insurance in an amount relative to your salary is probably the best way to go. Determine how much time you want your insurance to provide for your heirs, and insure yourself for that much.

If, on the other hand, no one depends on your for their basic income, determining your insurance amount based on your estate tax liability is a good idea. That way, nothing you leave behind will burden your beneficiaries.

When Do You Need Your Insurance?

Finally, when considering which general life insurance policy will work best for you, consider whether you want the policy to pay out only in case of your death, or if you might need the money in certain other cases. Some policies have a cash value, which you can borrow from at any time. Other policies will pay out if you are diagnosed with a terminal illness or are in an accident that incapacitates you.

Once you have answered these questions, it should be much easier to talk to an insurance company, agent, or broker about general life insurance. They can answer any further questions, and help you find the policy that will best protect your money and your heirs.

Andrew Stevenson is an experienced Insurance Adviser. For easy to understand Insurance Advice please Checkout His site: http://generallifeinsurance.org AARP Life Insurance

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