Suze Orman TwitterSuze Orman FacebookSuze Orman YouTubeSuze Orman LinkedIn
View Blog & News List

Life Insurance Made Easy. Really!

May 28, 2015 at 12:00 PM

Life Insurance Made Easy. Really!

Life insurance is such a difficult financial hurdle for so many of you. You’re either queasy about pondering the need for it in the first place, or you are rightfully queasy about getting taken by an agent selling you a way-too-expensive policy.

Okay, I am going to make this super clear and easy: Answer these five questions and you will know exactly what to do.:

  1. Is anyone dependent on your income? Such as a spouse, partner, child, parent, or sibling?

    No: You don’t need life insurance.
    Yes: Keep Reading

  2. Do you expect that you will need to provide that financial support forever-say for someone with special needs?

    Yes: I recommend you speak with a trusted insurance agent-ask friends and family for recommendations--about the need for a Permanent life insurance policy.

    No: Keep Reading.

  3. Do you want to protect a dependent for a set period of years: say until a young child is an independent adult, or until your mortgage is paid off, so a spouse or partner would be protected? Or to cover a one-time expense such as college costs or funeral expenses?

    Yes: All you need is Term Life Insurance. Term insurance is very inexpensive, because it will be in place for just a set term-such as 10 or 20 years-not forever. Keep Reading. 

3. Do you want to protect a dependent for a set period of years: say until a young child is an independent adult, or until your mortgage is paid off, so a spouse or partner would be protected? Or to cover a one-time expense such as college costs or funeral expenses?

Yes: All you need is Term Life Insurance. Term insurance is very inexpensive, because it will be in place for just a set term-such as 10 or 20 years-not forever. Keep Reading. 

4. Do you want to make sure that in the event that you were to die prematurely your dependents would not have any financial worries?

Yes: Buy a term life insurance policy with a death benefit that is equal to at least 20 times your dependents annual income needs.

With such a large death benefit, your dependents will be able to invest the money very conservatively-say in high quality municipal bonds-and live off the income.

5. Are you okay with your annual insurance premium changing (becoming more expensive) every few years?

No: Of course you’re not!. Shop for a level premium term life insurance policy. And make sure it is guaranteed renewable as well. A guaranteed level term policy means that your annual premiums will never change, and that as long as you keep up the payments the policy will remain exactly as it was on the day you purchased it. You can shop online for term life insurance; SelectQuote.com is a company I think highly of.

Tag Cloud

get the most out of social security pay down student loan debtreferrals Young Adult term life insurancekeep a scheduleLifestylecostly insurance mistakeidentity fraudraise insurance deductibleDurable Power of Attorney for Health CareThe Suze Orman ShowAARP Social security calculatorcostly legal worst financial mistakeno fee transferMust Have Documentsno life insurance financially irresponsibleconsider roth 401(k)buying a carGiftsHDHP/HSAGiftroth iraNew York Lifebill paying prioritiesdeath benefit needs for familyresponsible with moneyteens and moneyIRA contribution gifted moneyEmergency SavingsFundsHow To Build CreditLovespeak new goalmax employer matched 401(k) contributionalways use all paid time offdon't ignore open enrollmentFederal Stafford loansave healthy retirement weightmobile appnegotiate points with bank or sellershop online guaranteed level term policyprescription tierhigher insurance deductiblehome insurancelow credit scorepermanent life insurancedon't do five year car loanhome related tax break bonus Save Us Money10 year repayment plan social workFinancial SystemBill and Pennyhousing marketswitch to roth 401(k)retirement accountshigh credit score discountreal estate marketburn outPrime Rate Increaselong-term care premiumsritual scheduleno waiting periodUniversity of IllinoisMost Influential Celebrities Listunder 18 financial giftBankruptcybad retirement planningsuccessRevocable Trustincrease retirement savingsARMderailed planno private loansreduce withholdingrefundInterest3 bucket approachSuze is my biggest mentornot enough life insuranceStudent Loancredit cardtraditional vs roth 401(k)near historic lowssocial security not going brokelousy investmentdon't defer interest paymentsdental insurance pay more than minimum40% toward financial goalETF'scouple financesEasy Life Insurance annual cost of living adjustmentphysical healthmoney-aware childemergency fund 6 month waiting periodSatisfyingWarner Bros Television Groupchildren's bookfocus on new truth preexisting condition not coveredFRAForbes Top 10FICO Scorefinancial aidRetirement IncomeCommunication Skills credit utilization ratemortgage brokerForbesCommencementtaxesface your financial fearplan3% debt transferred quick closingsocial security never insolventHDHP's are good for youAlarm ClockInvest for savings growthPhyllis Shelton expert long-term carepowerfulapproved medical 100% tax-free3 step financial road mapallowance tasksidelinedpublic service career student loan repayment 8 Ruleslower mortgage interestGay Couples20% down payment20% equityNew american Dream mortgageCiti Simplicity Card Federal Funds Rateleave a legacySuze Ormanletter to suzehigh premiumschildren under 18be true to yourselfmental healthWashingtonpositivetitle insurancespring summer yours, mine & oursStudent Debt2016 adjust withholdingcharges on credit cardwrite new goalback-to-school budgetHigh Credit ScoreInfluentialsonly offered while employed better loan dealsRoth 401(k)is it necessary?debt freeco-sign Amy LacyetNewtownhome buying seasonincrease emergency savingsstandard deduction heartacheraise deductiblesbreakdown projected monthly housing costorigination feesnot gender specific non conventional routecontribute household expenses insurance mistakemortgage interest tax deductionvalue moneyFederal PLUS loanSuze Orman spouse Kathy Travisgift grandchild IRA contributionpresident Obamakid borrow firstFixed Rate Mortgageverify retirement plan with HR or plan sponsorhealthy aging age appropriate goalsstay positivetoo expensive schoolLTC shoppingknow before you owe50 over 50financial argumentsFinancial Advicevalentines dayget credit cardCNBCexercise reguarlypercentage of women widowed 75-84unsubsidized Stafford loandoctors in networkRetirement Savings2017 Taxesmoney vowskids schedule paymentsbad decisionslow down paymentjuggle multiple financial goalsis it necessaryno tax on withdrawlspoint cost offset by savingsterm insurancecommunity collegedear suzelife insurance name trust as beneficiarycredit managementConventional loan PMIHoliday ShoppingFree Debt Eliminatordo you need life insurancecalculate dependents annual income needsCivil Rightsbig results switch to spouse coverageMass Mutualtake actionSelfishretirment savingsdon't extend mortgage 19 years cash flow problemavoid burn outMoney-Savingretain separate credit cardscreate new truthcollege graduateincentives for health care wellness screeningPay Off Debt Before Retirementultimate compounding giftCOLAearn allowancefinancial independenceconfidentfile asap3 savings buckets HDHP premiumcollege studentbalance transfer HDHP's are not badAdequate Auto and Home InsuranceCredit Card Interest Ratepay high rate off firstHeartFinancial Awarenessdental savings planbetter termsGoodbyeMoney Marketsummer job match income lower interest rateFinancial Gift Cliffautomate student loan paymentswaive home inspection bidSuze Orman's Money Warscompare monthly expensesSuze Orman Scholarshipcredit unionInfluential Celebrityfinancing car overcome financial fearsaffordable premiumfinancial goal phraseage appropriate choreinterest on student loanscut monthly cellular billwomen outlive mengrandparent IRA contribution !00% tuition paidmax employee matchinsurance yearly reviewForeclosureresponsibleSelectQuote.comcar buying mistakesstore credit cardsschedule vacationmax benefit coveredStock Investmentsemployer funding HSA8 month emergency fundholiday spendingExhibitionverify wellness screening and programscomparison shoppingFHA loan feesRevocable Living Trust10% donate to charityMarlo Thomaswomen long term carereplace permanent life insurance with termthree year car loantax refund fraudbetter loan ratesstudent loan repayment estimatorCory Bookerretirementis it true? one credit cardfamily save at least $100 monthlyVeterinary School30 year mortgage itemized deductiondoctor no longer in networkfocus on needsOne Wallet At A Timeno retirement funds for down paymentaffordabilitymonthly dental insurance premiumdeath benefit 20 to 25 times annual incomeopen enrollment review insuranceFinal Goodbyeemergency fund savingsSpendingmonthly benefit federal student loan deferment Gracezero rate transfer dealsgift not loanwomen longer life spangraduationFinancial Power of AttorneyLong Term Care premiumstax ID theftteensGay RightsAccuQuote.comloan is giftcredit reportpaid in fullCredit Card Rate Increaselong term goalborrow each year, capitalization is going to pile up Holiday Seasonshort term goal full retirement agepay 100% cashreal estate mistakesChanging Livesborrowing plan Fiscal ResponsibilityAshley SpringerBankwomen live longerprotect and provide for minor child no sneaking in feesPBS SpecialLTCback door Roth IRAcut monthly cable billmarriage financial responsibilityfinancial fearsdream schoolretirement planSandy Hook Promisedon't buy wantsreduce monthly paymenthigh down paymentmaintain standard of livingUniversity of Floridaadvice for college graduatesAmericans don't use all paid vacation timeanticipated salaryalternative FICO scoreadult childrenclosing costs 2% of loanUrbana-Champaignstudent loan repayment planpay down car loandon't charge a pennydepreciating asset Long Term Care Insurance at worst still pay 75% benefitstretch out haircut appointmentsfraudulent returndental discount plan2016 adjust estimated taxenjoy saving best loan deal loved ones dependent on incomesecure creditescrow15 year mortgagesetup automatic savings withdrawWall StreetHigh FICO Score = Better Ratecnbc alarm clock740 credit scoredon't spend home ownershippay credit debt ASAPpaying for collegeloan necessityincreased auto insurance premiumFinancial CliffVital Documentshealthy retirement blood pressurehigh FICO scoreno splurge Suze changed my lifehome budget after tax cost2015 financial roadmappay off debthome buying mistakesautomatic paymentget health insurancegift up to 14,00015-year refinance dealrefinancelife insurancemake saving a pleasureemotional stakesmanage student loanscar loanAuto Savings FICO credit score credit card mortgageSandy Hook Elementary Schoolstudentprovider of financial supportgrandchild summer job IRA contributionAARPCredit scorebuy down LTCi ASAP401(k) Contributionsbuy home401Ktelevision hostallowancePrime Rate Rise 2015secured cardworkaholicteach importance of helping othersemployer offered life insurancepush yourself to save more for retirementUS Tax CodeBeautymortgage disclosurefile taxes quicklyadd teen20% down payment avoid feeshome loan credit score below 740 HDHP'slong-term care Financial Solutions For Youlive below your meansis it kind?rolloverfinancial concernPersonal Financebe good examplestudent loan debtBaby Boomersclosing feesno late fee wives should be involved in retirementstrained relationshiponly refinance if it paysdon't blow tax refundbuy home you can affordMotherrepay student loansprotect your familylong term careteach your child good money habitsstudent loan repaymentmultiple lendersEric Dodge OverspendingMinor Children School of Social Workpay interest while in schoollowest cost fund optionschool Financiallower overall drug costcommitadjust allocations rising home pricesloan big picture Post-Divorcecan you afford itinterest capitalization2015 record year car salesoverspend on dining outsavings pleasurebe kind to yourselfone annual feegay marriage ban end Florida cost of capitalization calculatordon't derail retirement savingsTeachhighest possible benefitsave moneyrent vs buysavingslow mileage discountStudent Debt Crisisbest interest ratesignore 6 month grace period higher monthly paymentpublic service loan forgiveness programSuze approved8 month safety netincrease retirement contribution rateFinancial Awareness Video Festivalno interest4 Must Have Documents low-cost index mutual funddon't use allowance as bribestandard ratestaycationLegal GuardianMoneyprotect loved ones january billspurely financial standpointEmployer Matched Contributionfour steps to retirement savings high deductible health care planlet them have 50% controlget over life insurance phobiainitial tax break lower ratedebit cardlearn good financial choicesbuying car 2016Willeight month living expense contribution Long Term Care shoppingbecome member paid vacationautomatic withdraw to savings Jose Rodriguezno apologydangerous money seasonspecial saving accountdo not pay allowance for good behaviorraise your deductibleStaffords this year have a fixed 6.8% interest ratedebtprotect dependent property taxHSA tax savingsconfident of solutiondangerous retirement planreduce interest ratesmall changes CPI-Wpercentage men widowed 75-84Holiday20 year level term ARM Cautionsame sex marriage band end Floridapeace of mindcompare provider pricing20 to 25 times annual incomeMortgage Credit Availability Indexrequire chore in exchange for allowanceloan no longer than 36monthsiffy incomedon't cover cosmetic dentistrymarriage inequalityhome buying budgetmeet monthly same-sex marriagelower premiumrequired disclosuresocial securityno negativityclosing disclosureFinancial EducatorFICO at least 720car leasingunexpected expenseoverspend on giftsbudgetshorter payback periodno private loanRichuniversal college accessCollege of Veterinary Medicinehealthy youTelepicturesnew carwould you decline a bonuscommunity bankoverspend on nights outidentity theft


View Blog & News List
People First. Then Money. Then Things.
Connect with me on Facebook Connect with me on YouTube Connect with me on Twitter
© 2017 Suze Orman Media Inc. All rights reserved.
 
 |  Search  |  Sitemap  |  Privacy  |  Terms
Sign Up For E-mail Offers
Open Panel
Close Panel