Life Insurance

I l @ ve RuBoard

No one likes to talk about life insurance. Unpleasant. Nonetheless, when starting a new business, it's very important that you assess your life insurance needs. One reason is, again, that old paycheck you used to have at a company. Hidden there among FICA and so on may have been some "automatic" coverage at a specific multiplication of your salary.

Like health insurance, there are many different configurations of life insurance, and only someone familiar with your full financial needs can advise you. However, people have a tendency to underinsure, particularly if they have families. One reason is that, for instance, a million dollars may sound like a boatload of money to some. The insurer may feel "That's enough for my husband/wife to live on and to put two kids through college." Likely true. However, if said husband or wife needs to return to the office (e.g., a stay-at-home Mom needs to get a job), what about paying for child care or a nanny for the kids ? What about all the survivor 's myriad financial needs, not just for a few years but into retirement?

There are two general types of life insurance:

1. Whole (which has cash trade-in value and is more expensive)

2. Term (which is less expensive but has no trade-in value)

Rates will depend on your age, health habits (smokers pay more), occupation (a race car driver pays more than a teacher), and hobbies (skydiving is a no-no).

I l @ ve RuBoard