Home » Santa Clarita News » Arif Halaby - Total Financial Solutions » Are You Making These Common “Life Insurance” Mistakes?
Santa Clarita Economy News

Are You Making These Common “Life Insurance” Mistakes?

By: Arif Halaby | Total Financial Solutions

When selecting the correct type life insurance policy for your family, people often forget about these three things.

“Why am I buying Life Insurance?

Life Insurance is commonly used to help your family replace your income, pay off a house or pay off a large tax bill. Insurance has many other uses including paying for your children’s college education and providing a donation to charity upon your passing. When you think about it, there are indeed quite a variety of things that you need to pay off in everyday life. Having life insurance can not only help you keep track of those things, but also ensure that the future is safe. Should anything happen, everything will be taken care off and bankruptcy won’t be an option.

Knowing what the purpose is for your life insurance can help you select the most appropriate one for your needs. If you have a temporary need, such as college or paying off a house, then you may have a need that is only for the next 10-20 years.  If you have children that will be done with college in 10 years, then you may not need to have a permanent policy.

In this case consider a guarantee 10-year term insurance plan.  If you have 20 years or so left on your house mortgage, then a guarantee 20-year term insurance plan may be right.  In either of these two examples, the financial need is met and the cost is one of the lowest possible. It means that the coverage never decreases and the cost is guarantee to not increase for the entire term.


Sponsored Articles


Don’t miss a thing. Get breaking Santa Clarita news alerts delivered right to your inbox.

How much life insurance do you receive at work?

Many Santa Clarita companies and employee unions in provide free coverage at work and you can use that to supplement your needs. Find out if it is the type of policy that increases in cost every few years or decreases in coverage amount, or both.

As you get older, the cost of insurance of many of these policies increases because you get closer to the life expectancy tables (or dying). Sometimes the coverage you receive at work is Accidental Death.

Be careful not to count that when determining the amount of coverage to purchase.

Read More: Santa Clarita Economic News

Accidental Death Life Insurance

Accidental Death Life Insurance should be counted as extra. Since the cost of this type of coverage is so minimal, many people buy a lot of it. Certain age groups do have a higher percentage death caused by accidents.

Therefore this coverage may be just what you need. The best way to be covered regardless is to buy either term insurance or permanent insurance and only use the Accidental Death plans as supplemental.

KHTS AM 1220 - Santa Clarita Radio

Are You Making These Common “Life Insurance” Mistakes?

Leave a Reply

Your email address will not be published. Required fields are marked *

*

This site uses Akismet to reduce spam. Learn how your comment data is processed.

About KHTS Newsroom

KHTS FM 98.1 & AM 1220 focuses on Santa Clarita news, traffic, weather, sports, and also plays music. Bringing you SCV breaking news first and keeping you up to date with Santa Clarita events.