Life Insurance


Introduction to Life Insurance and Anuity
If you plan to buy a life insurance policy or annuity contract, you must first consider your needs and understand the various types of insurance products available. More consumers use life products and annuities as part of their financial planning objectives.

Consumers spend a large amount of money every year for life insurance policies or annuity contracts only know a little about what they get. This guide was developed to help consumers make educated decisions and help them understand the benefits and risks involved in financial planning.

The purpose of this information guide is to help you understand the type of life insurance policy or an annuity contract that is available. If one type of policy or contract is not in accordance with your needs, then ask and find out about other available policies or contracts, many of which are explained in this information guide. You can examine more information about life insurance policies or annuity contracts by checking with licensed life insurance agents or licensed life insurance companies. You can also visit your public library for material or books about financial planning.

Life insurance information or annuity is also available on the internet.

In addition, the California Insurance Department (CDI) has a pulse -free hotline telephone number and a website that can provide further information and assistance about life insurance policies and annuity contracts. Please see many ways to contact CDI on the last page of this information guide. This information guide is divided into two parts: life insurance and annuity.

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Define your needs
Life insurance purchases are an important decision for you and your family. There are many reasons why life insurance policies or annuity contracts are purchased, but this reason must be based on your financial planning needs. Factors such as your marital status, the number of dependents and costs for their support, future educational needs, current and anticipated family income, and your current assets and debt obligations all play a role in determining the right amount of life insurance for you.

Life insurance
Choosing the Amount of Life Insurance
Your need for life insurance will vary with your age and responsibility. The amount of insurance you buy must depend on the standard of living that you want to guarantee for your dependents. You should consider the amount of assets and sources of continuous income available for your dependents when you die. Simply stated, you must choose a number of determined life insurance it is necessary to meet the needs you are trying to satisfy. Balance needs to be achieved in this process. To be too insured can affect your budget negatively and threaten your long -term financial goals the same as under insurance. While everyone must individually assess their responsibilities, needs, and financial situations, it is important to be careful to choose a number of life insurance that reflects your specific situation without under insurance or too insuring.

Steps to determine how much life insurance you need:

Determine how much life insurance you need is based on the factors mentioned above.
Decide how much money you can pay.
Choose a type of life insurance policy that meets the purpose of your coverage and the current family budget. Adjusting these two factors together -the same time will move you towards a successful overall financial plan.

After you complete these steps, you will be able to move forward and contact several life insurance companies (through agents or brokers) to shop for the right type of policy for you.

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