discount life insuranceDiscount Life insurance benefits will provide your dependents with an important financial resource. The money received from a discount life insurance policy can help pay the mortgage, run the household, cover basic needs, and of course cover funeral costs.

In general, there are two basic types of insurance to choose from: term life insurance, and universal or “whole life”.

Term insurance provides protection for a specific period of time. It pays a benefit only if you die during the term. Some term insurance policies can be renewed when you reach the end of the term — which can be from one to 30 years. The premium rates increase at each renewal date. Many policies require that you present evidence of insurability at renewal to qualify for the lower rates.

Whole Life premiums generally remain constant over the life of the policy and offer a “cash value” (savings) component.

A basic way to calculate how much discount life insurance you need is to consider your annual income before-taxes, and estimate how many years left until retirement. There is no federal income tax on life insurance benefits.

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