How to Plan With Life Insurance

Life insurance is an easy way to begin building an estate. There are two types of life insurance: whole and term. Each has its own benefits. The purpose for taking out life insurance will determine the kind you choose. A financial adviser can help you calculate an appropriate value for your life insurance policy. Read on to learn how to plan with life insurance.

Difficulty: Moderate

Instructions

Things You'll Need:

• Financial planner
• Insurance agent

1. Determine which type of life insurance, whole or term, meets your financial needs.

2. Review your assets with a financial adviser. A financial adviser will help you choose a dollar amount for the life insurance policy.

3. Learn about companies who sell life insurance. Not all insurance companies specialize in life insurance.

4. Meet with your insurance agent once a year to report changes in income, age and overall health.

5. Consult with your financial planner bi-annually at a minimum to discuss inflation rates and the face value of your life insurance policy--you may want to increase the dollar amount of your policy.

6. Communicate openly with an attorney to discuss estate planning and the beneficiaries of your assets.

7. Decide the distribution of the dollar amount to your beneficiaries.

Tips & Warnings

• You can borrow against a life insurance policy.
• Do not make the value of the life insurance policy so high you cannot make the payments.

Resources

• Insurance Information
• Income Protection Life Insurance Plans

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