Friday, September 21, 2007

Questions to ask about Life Insurance from Work

1. Can you take your Life Insurance with you? Many group policies end when you end your employment. And, if you can continue with your group Life Insurance, how much will it cost?

2. How much Life Insurance coverage do you have? Is it enough to replace your income if something happened to you? Here’s a sobering fact, most investments today that guarantee to protect your principal pay less than 5%.

That means if you make $50,000 a year it could take $1,000,000 in Life Insurance proceeds to replace your income. Fortunately, Term Life Insurance rates are pretty cheap these days, so you may be able to afford much more than you think.

3. Who pays for your group Life Insurance? Your employer? You? Partly your employer and partly you”? If you participate in the cost, consider how the following applies to you.

Most Life Insurance policies from work don’t require medical exams. Which means the Life Insurance companies that issue them set their prices “in the middle” knowing they’re going to have a mixture of good and bad health risks.

This is good news for folks with health problems. But, healthy people may be better off shopping for Term Life Insurance on their own.

Regular Life Insurance companies determine your price on your personal profile — your health, your family health history, etc. If you’re in pretty good health, and you pay for all or a good part of your Group Life Insurance, you’ll likely save money buying your own.

An easy way to find out is to go online and get free quotes from an independent sales agency that represents a number of highly rated Life Insurance companies. SelectQuote.com is the oldest and most experienced company of this type.

SelectQuote has exclusive videos of Suze Orman offering impartial advice on buying Life Insurance.

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