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September 25 2013


Van Nuys Insurance FAQ

When it comes to life insurance in Van Nuys, California, not too many people understand the importance of financial planning. That is why, in this article, I am going to answer a few of the most common questions when it comes to life insurance. Let's get straight to it then: 

Q1. What amount of life insurance do you need? 

When it comes to getting life insurance, you need to ensure you cover all financial aspects so that none of them end up becoming a burden on your family. Some of these aspects include income substitution, children's education, asset repayments, outstanding financial debt, miscellaneous costs, etc. Reports have shown that most Canadians chose life insurance amounts of less than $ 250,000. It is recommended that you speak with an experienced and professional insurance representative or broker before you make any big decisions. There might be financial responsibilities which you may have overlooked which will return to haunt you at a later date. And if you already have children at the time when you take the policy, your cost is going to skyrocket. But I'll cover that with the next question. 

Q2. What amount of life insurance do you need if you have kids?
If you have kids, there is a lot more calculations that will go into determining the best life insurance Van Nuys companies can offer you.. Some of these include clothes, food, healthcare, school and recreation, transportation, housing, personal care, child care, etc. If you take an average cost of $ 1,000 per month for 19 years to raise a child, that works out to around $ 228,000 per child. Add to this post education costs and you will find yourself with a cost of well over $ 300,000 per child. What about if you have two? Suddenly, $ 250,000 worth of life insurance doesn't seem enough does it?

Q3. How many types of life insurance are there? 

Did you know that there actually is more than one type of life insurance? Let's see a few of them: 

1. Term - This insurance expires at the end of a fixed term which may be either 5 or 10 or even 20 years. This type of insurance doesn't accumulate value though. It is just a simple insurance product. 

2. Universal - This type of insurance involves a combination of an investment and life protection. A part of your premium goes towards your account which will even help increase your total net worth. You are also allowed to choose how to invest the investment part. These policies usually cost a little more than regular term policies. 

3. Whole life - This is one of the more complex insurance products. This policy covers everything available in a universal policy but offer much less flexibility. This is a lot more expensive as well as compared to term insurance. 

While every type of life insurance has a set of pros and cons, the best bet for most users will be to go with term life insurance. It is the easiest to understand and the cheapest as well.

"Chcę Cię mieć w domu na jesień…"

— Piotr Rogucki
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Reposted frommrs-cosmos mrs-cosmos viakamykowata kamykowata
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