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Life Assurance Q&A's
Is there a need for Life Assurance?
Life assurance can be used for any number of reasons. Some of
the most common are:
- Creating an estate where time or other circumstances have
kept the estate owner from accumulating sufficient assets to
care for his or her loved ones. Life Assurance can create an
instant estate
- Paying estate taxes and other estate settlement costs
- Funding a business transfer
- Funding college for children or grandchildren
- Paying off the home mortgage
- Protecting a business from the loss of a key employee
- Creating a retirement fund
- Guaranteeing loans
Usually, what should one's own?
Usually, an amount of Life Assurance equal to 6 to
8 times annual earnings is needed. However, many factors should
be taken into account in determining a more precise estimate.
Important factors include income sources (and amounts) other
than salary/earnings, whether or not the individual is married
and, if so, what is the spouse’s earning capacity, the
number of individuals who are financially dependent on the insured.
How much will it cost?
The cost for Life Assurance varies widely depending on the health
and age of the person to be insured and the coverage amount
of the policy. Individuals are rated by their age, health history
and in some cases, by their careers. All other things being
equal, younger people will generally have lower premiums than
older people. |
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