Though nearly six in 10 Americans own life insurance, fewer than three in 10 feel confident in their understanding of how it works, according to a recent Forbes study. While policies can seem complicated, it’s imperative that consumers understand where their money is going and why life insurance is a worthwhile investment. With the right tools, life insurance can be pretty simple to understand.
TheSimpleDollar.com’s Life Insurance Guide breaks down life insurance, bit by bit, from who needs policies, how different policies work, what will affect rates, and what you should know before buying your policy. The easy answer: everyone needs life insurance. But that’s not always the case. Did you know that once your policy is in place, changes in your health won’t affect your current rates, though they will likely affect renewal rates or even keep you from renewing your policy? What if you are healthy, but your family medical history suggests high risks of disease once you turn 50? How much more will your rates increase if you purchase a 20-year policy at age 50 than at age 35?
The Simple Dollar’s life insurance guide dispels common life insurance myths and walks you through the process of buying your first policy while providing money-saving tips for buyers. Tradition holds that the standard formula for knowing how much life insurance to buy is four times your annual income. As it turns out, that is actually pretty poor advice. So how much do you need? How long should your policy last? Should your policy be linked to your investments? Can you afford to get life insurance? Bigger question: can you afford not to?
The site’s life insurance guide is all about answering those questions, and making sense out of complex financial topics, like life insurance, retirement, health insurance, car insurance, and personal savings. You don’t have to make your most important financial decisions alone, nor do you have to blindly trust insurance companies and agents. TheSimpleDollar.com’s experts can do this with you.