What kind of insurance is needed to pay my debts off at death? I don't want to leave my wife burdened.
I know there is a type insurance that does this. We are just buying a home and I want to set it all up correctly.
Hi Debra, yes there are policies to address your concerns. However, not knowing specifics about you and your life situation, I'd recommend you contact a local insurance agent in your area. She or he will listen, educate, advise and recommend a path to forward to give you peace of mind.
Darius | 03.04.16 @ 07:50
You can include the funds required to pay off debts as part of the plan for a general life insurance policy that could also provide funds for other purposes such as: final expenses, income replacement or anything else you'd be able and inclined to cover had you lived. Match the term of the policy to your needs. If the need is expected to diminish over time, a term policy would be preferable. If you want the coverage in-force if you die when you are old, you'll need to look into the more costly permanent policies. | 03.08.16 @ 19:36
When I work with clients in your situation, I typically address these things: What would it take to pay off your mortgage today? What other debts does your household carry? If you have children (or plan to have them), do you want to fund their college education in the event of your death? (Experts recommend $20,000 per year per child.) And assuming you've covered all the above, is there an amount of money, or a monthly income, you would want to provide for your spouse upon your death? It's often an overwhelming total, but I always use the numbers my client gives me. Next, I consider - as mentioned above - the length of time of the need. Very often a combination plan, joining permanent insurance with term, is an answer, but the situation (and the pocketbook) is always the boss. | 03.08.16 @ 20:57
Take life insurance out for the total price of your home loan and credit card insurance on each credit card you have, if you take out term insurance take it for 30 years or the or term of you loan. | 03.08.16 @ 22:04
I would recommend doing a needs assessment and going from there. A needs assessment is a snap shot of what you wish to accomplish at this time. Then you should follow up with your agent every 2-3 years on any life event that may change and/or effect your needs. | 03.09.16 @ 15:48
There are many different types of policies depending on your situation. A few of the most common policies are Term, Universal Life, Indexed Universal Life, and Whole Life.
The goal of life insurance is to provide a measure of financial security for your family after you die. So, before purchasing a life insurance policy, you should consider your financial situation and the standard of living you want to maintain for your dependents or survivors. For example, who will be responsible for your funeral costs and final medical bills? Would your family have to relocate? Will there be adequate funds for future or ongoing expenses such as daycare, mortgage payments and college? It is prudent to re-evaluate your life insurance policies annually or when you experience a major life event like marriage, divorce, the birth or adoption of a child, or purchase of a major item such as a house or business.
Term Life allows you to pick a period of years such as 5,10,15,20, & 30 year term. Though these policies are economical nearly 90% lapse do the the high cost of converting or keeping the policy after its term. Once the policy is expired, it is up to the policy owner to decide whether to renew the term life insurance policy or to let the coverage end. This type of insurance policy contrasts with permanent life insurance, in which duration extends until the policy owner reaches 100 years of age
Universal Life insurance which combines the low-cost protection of term insurance with a savings component that is invested in a tax-deferred account, the cash value of which may be available for a loan to the policyholder. Universal life was created to provide more flexibility than whole life by allowing the holder to shift money between the insurance and savings components of the policy. Additionally, the inner workings of the investment process are openly displayed to the holder, whereas details of whole life investments tend to be quite scarce
Index Universal Life which A permanent life insurance policy that allows policyholders to tie accumulation values to a stock market index. Indexed universal life insurance policies typically contain a minimum guaranteed fixed interest rate component along with the indexed account option. Indexed policies give policyholders the security of fixed universal life insurance with the growth potential of a variable policy linked to indexed returns.
Whole Life A life insurance contract with level premiums that has both an insurance and an investment component. The insurance component pays a stated amount upon death of the insured. The investment component accumulates a cash value that the policyholder can withdraw or borrow against.
Everyone individual life insurance needs are like fingerprints no two situations are the same. Contact a licensed insurance specialist who is not a captive agent that can give you options and supply you with highly rated life insurance carriers. | 03.09.16 @ 18:51
Hi Debra, I would have to agree with Darius. Not knowing specifics could affect the recommendation; (i.e. Do you have a Pension? What are you survivor benefits allocated as? Whats your mortgage value? etc). Contact your local agent(s) and he/she will educate you on the benefits of thy different types of plans.
My best | 03.09.16 @ 20:08