1:34 a.m. - 2010-07-08
Your Financial Plan Should Include Life Insurance
Many people avoid thinking about life insurance, simply because it means thinking about your own death. But, life insurance quotes should be part of everyone's financial plan, especially if you are the main source of income for your family. There are two primary types of life insurance available.
Term life insurance is the first type. This is the type you most likely have through your employer. As long as you pay the premiums, you're insured for the face value of the policy. Premiums go up as you get older, but the payout does not.
The second type is whole life insurance. The premiums stay the same throughout your life, and the policy accumulates a cash value as you pay into it. It may even pay dividends. The value continues to increase as long as premiums are paid, and you can actually withdraw some of the money for college expenses or a home downpayment. This type of policy allows you to see some benefit even before your death.
Insurance companies often offer both types in various forms and can tailor a policy just for you.
Determining how much life insurance you need is usually the hardest decision.
Families need to consider how they could pay the bills if the primary breadwinner's salary was gone. Some families choose to have a life insurance cover with the primary breadwinner for the amount of one year's salary. Others choose to insure the primary breadwinner for the amount of the mortgage. The logic behind this choice is that the secondary income spouse could support the family if there were no house payment.
Don't make the mistake of thinking that a stay at home spouse should not have life insurance. Consider the amount you'd have to pay someone to take over duties like child care, cooking and cleaning if the stay at home spouse died.
It's important to review your life insurance every few years. Single people need little or no coverage, while young families need significant coverage. Coverage needs will decrease again when children are grown and the mortgage is paid in full. 
Term life insurance is a part of your financial plan that requires some consideration. Think about your needs, and then sit down with your agent to create life insurance coverage that protects your family.
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