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The Daily Ardmoreite
  • Understand Life Insurance Choices

  • When you think about life insurance, you may dismiss it as something that only older people need. A life insurance policy is taken out on someone’s life that pays out when they die, helping to financially protect dependents and loved ones. Insurance proceeds are used to pay ongoing expenses, educate young children, pay off mortgages or cover final expenses.
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  • When you think about life insurance, you may dismiss it as something that only older people need. A life insurance policy is taken out on someone’s life that pays out when they die, helping to financially protect dependents and loved ones. Insurance proceeds are used to pay ongoing expenses, educate young children, pay off mortgages or cover final expenses.


    People put off buying life insurance because they don’t want to think about their own mortality, but it’s important to your family’s financial security, say personal financial planning experts at the Oklahoma Society of Certified Public Accountants.

    Here are some tips:

    Life insurance coverage may be bundled (or combined) with other insurance policies and this may be another option for you. For example, the package may pair life coverage with long-term care coverage.


    How much should you buy and what will it cost?

    Figuring out how much life insurance you should purchase comes down to crunching the numbers and knowing your personal level of risk. You can come up with a number by either estimating the potential income for the rest of your life by multiplying your annual salary by the number of years left to retirement, or calculating future expenditures for your family and insuring yourself for that amount of money. You must also consider the value of other available liquid assets you have, as well as the amount of your outstanding debt to help determine the right amount of insurance for you. Talk to your CPA and insurance agent to help you decide.

    Many employers offer inexpensive life insurance as an employee benefit. These are typically term policies that will cover you as long as you work for that employer. Some policies can be converted when you leave the company. It’s a good idea to have insurance on your own in case something happens to your employer or your job.
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    The cost of your life insurance will vary greatly depending on how much you buy, the type of policy you choose, your age, gender and overall health. Agents use actuarial tables which project your life expectancy and determine your costs. If you purchase a policy when you’re younger, the premiums are generally less expensive.
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