Reader’s Question:

What’s the best way to choose life insurance? I just made a down payment on a 20-year mortgage here in Nevada and a friend talked me into getting a policy.

Carla

Reno, NV

The best way to determine what kind of life insurance policy would be right for you (and your beneficiaries) is to determine your family or loved-one’s immediate future financial needs in the event that you suddenly pass away. If your are the household’s main, or sole, provider, you should definitely take into account any debts or financial obligations that you will leave behind. Like that 20-year mortgage you took-out on your home there in Nevada, (it would be terrible if the house your family is living in gets foreclosed due to non-payment and I’m sure you don’t want that to happen).

There are two kinds of life insurance policies that you can choose from. You could go with a term life insurance policy which is a cheap life insurance policy that still provides relatively big amounts of benefits (also known as the policy’s “Face Value” amount) but the coverage period is limited. Most career people choose this since they only need insurance until children are grown-up or once debt’s have been settled.

You can opt to buy a whole life insurance policy which gives lifetime coverage. Premiums are a bit higher but you are guaranteed a level or stable rate all throughout the coverage period. This kind of policies may also come with a ‘cash-value” feature that puts part of your premiums into a fund that can grow and be used for future needs without sacrificing your life insurance coverage.

Reader’s Question:

Is there a guideline on how I can estimate the death benefit I should apply for? Where can I find it in Las Vegas, NV?

Margaret

Las Vegas, NV

Hello, Margaret, so good of you to drop by today!

This is a question I most welcome because it gives me an opportunity to impart very important lessons to our readers in Las Vegas, NV. I can only hope that they stop and take in what I’ll say even for just a minute because it can be critical information they need when applying for life insurance.

There are many tools available in the internet which will help you estimate the amount of death benefit you should apply for. These are usually called life insurance needs estimator or life insurance needs tool. What it does is it gives a standard checklist on the items you should look at when you compute your death benefit. Usual items considered are immediate expenses, ongoing expenses and incoming expenses. Let’s try to define each properly and start with immediate expenses. Immediate expenses are, like the term suggests, immediate expenditures that need to be settled right after your death. This may include (but is not limited to) medical bills, funeral costs, outstanding loans such as home loan or auto loan. These are one-time big time expenses and surely you do not want your family to inherit your loans, right? Now on to ongoing expenses – these are small items that can be significant because it is repeated over time and will not go away. Examples of this (again it is not limited to these) are utility bills, allowances, food, school expenses. Lastly, incoming expenses are expenses you don’t have yet but will surely incur in the future and a perfect example would be college education for the kids. The internet can also provide you with free estimates for your life insurance package and you only have to supply your zip code to get them (similar to what you can do on this page).

If, however, you prefer to talk to a live agent, you can most certainly do so. Just schedule an appointment with a financial planner or insurance agent in Las Vegas, NV for a consultation. Just remember to bring all the details with you so that your discussion will be fruitful; ta-ta, Margaret!

Reader’s Question:

I’m 25, single and an only child. My parents passed away when I was still in my teens and I live alone now in our house in Henderson Nevada. I can’t see the need for life insurance, can you?

Madelyn

Henderson, NV

Hello, single and independent Madelyn! Unfortunately, I’d need some more information about you to make a more accurate stand on the question. But without them, allow me to make some assumptions just so we can proceed.

I’d assume that you have some relatives who are quite dear to you and I am assuming that these are the ones who raised you and served as your parents when your real parents passed away – wouldn’t you want to leave something behind for them? Is the house in Henderson Nevada fully paid for? If yes, how about the bills and the upkeep of the house; who will take care of it when you’re gone? These and more questions are what you should consider before you can say that you will not need life insurance. Truth of the matter is, everybody needs life insurance because everybody is connected to somebody in some way, and because of this, somebody’s passing will ultimately affect (emotionally and financially) somebody else! So, you may be single and you may be an only child, but truly, you are not an island, right Madelyn?

At the same time, you may be single now but will you be single forever? Can you say for sure that you will not have a husband and a kid (or kids) somewhere down the line?

Life insurance is something we should all pay for whenever we can, and if we can’t we really should try to. It may not make sense now but it when it does, it might be too late. So Madelyn, just to trigger your journey towards acquiring life insurance, please take a look at some proposals from various insurers in Rio Henderson Nevada. These are free proposals that do not require anything from you and you can get them by simply typing in your zip code at the search bar on this page.