There are just so many types of life insurance plans and so many insurance companies offering those plans, that it can become very confusing very quickly if you are trying to decide what coverage is best for your needs.
Young married couples who are just about to start a family arguably are most in need of life insurance, but whilst they might be most in need, they can also be the most overwhelmed.
With that in mind, how can one determine which plan and company is best for the husband and or wife? Let's consider this now.
Although a young couple who are about to have their own family will have the greatest need for a life insurance plan, that young couple will probably be hard pressed to find the necessity for a policy within their budget. What's more however, most young couples are not familiar with life insurance and thus it can be very confusing.
Couples with young kids have the greatest need for a single reason: if one or other or both partners pass away, it may take fifteen to twenty years before the kids are fully capable of taking care of their own financial requirements.
There are however other reasons too. Mom often takes on the responsibility of housewife, in which case there's only one breadwinner within the household. What's more, the price tag on having kids these days is very high.
There are a number of different life ins plans which can be chosen from. Among them: term life, whole life and universal life, which are the most common policies sold in the United States.
Term life offers a higher death benefit payout and is ideally suited to those who require a temporary insurance policy. For example, term life insurance may be suitable in the scenario where you as a parent should pass away before your children are grown, or before their education and college expenses are paid.
Whole life and universal life are permanent in nature. These policies also build up a cash reserve in time. Thus, whole and universal life may be suitable should you be considering how your estate taxes will be paid when you die or how to accumulate a cash sum for when you retire for example. Some policies even let you borrow against them.
There are literally hundreds of insurance companies offering various life insurance plans to suit almost every possible requirement for various age groups. The fact of the matter is however, that the same plan offered by one insurer may cost twice as much with another simply because they use a different methodology to assess risk.
How do you choose the best policy for your needs?
In order to choose the best policy you could, of course, go online and complete a few web searches and get some quotes that way. The problem here however is that you may still feel somewhat overwhelmed. After all, if you are new to life insurance, it can certainly be confusing. Therefore, it may be wise to find an agent that works with many companies.
A captive agent normally works with a single carrier and will generally know his or her products very thoroughly, whereas an independent agent tends to work with a broader range of insurance companies, which in reality will provide you with more scope and more affordable life insurance premiums.
Most importantly however, make sure you do take action and do get insurance cover. Don't let the complexity of the matter stand in your way.