The Best Life Insurance Policy For You

Different Scenarios Discussed

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One question you will want answered is which is the best life insurance policy to buy. There is no standard answer for this as each persons situation is different. Let us examine some possible scenarios. May be you fit into one of these situations.

• The Best Life Insurance For The Single Person Who Has No Dependents

  If you are unmarried and have no dependents you have very little need for a life insurance. There are, however, a few things you should think about. If you have any outstanding debts you may want to take care of those. You will also need sufficient cash to pay last expenses. This would include things like funeral expenses, court costs if you have a will and, of course, attorneys fees. If you have any family member that you would like to assist, or any charity of which you are particularly fond you may want to set up funds for those. All these things can be taken care of through life insurance. If you have sufficient cash you may not need a life insurance policy at all. The best life insurance policy would be likely a term policy.

• The Best Policy For A Single Parent

  Consider a single parent. Regardless of the amount of income a single parent earns an ever present nagging thought is what would happen to the children after death. It would be wise to prepare for this. It would be a good thing to arrange for an appropriate guardian in case of death while they are dependent. It would also make good sense to provide an income for this guardian. Life insurance would be the cheapest way to provide this income. What is the best policy to use? Since raising children can be a very expensive proposition it may be wise to use a term life insurance policy for this. If the children are very young a 20 year, 25 year or 30 year term policy would fit the bill.

• Married Parents With Dependent Children

  If only one parent works it is usually the intention of the spouse t earning the income that the survivors maintain the same standards they have become accustomed to. An income for a specific amount which would last until the youngest child has graduated college is advisable. Thereafter, an income sufficient to maintain the surviving spouse would be a loving expression. The best life insurance policy to use would be term initially but this policy should give the owner the option of converting at a later date if this is desired. This will insure that if death occurs even after the children are out of school the surviving spouse will be taken care of.

  If both parents work the same plan can be followed. A little extra cash cannot hurt.

• Policies For Business People

  Buy sell agreements are best funded by life insurance as it is the cheapest way to go. If a partner or shareholder should die the proceeds would be used to purchase the deceased partners shares at a predetermined price. Life insurance can also be used to offset the losses to the business which could result if a key employee died. As to whether the business should use term or permanent insurance would depend on the projections of the particular business...how far ahead they plan for. If you plan to be in business for a long time a permanent policy, like universal life or whole life insurance may the best life insurance policy for you.