Term Life Insurance

One part of personal finance that financial planners will always raise is the question of whether or not you have adequate insurance in place. Although planners may have a vested interest in getting you to take on more insurance (a large part of the first year's premium is usually paid out as a fee to your advisor), the question of insurance is vital for many people. In my case I increased my term life insurance to $400K after I'd got married and our first child was expected. This amount, combined with the balance of my superannuation account, would be enough to pay off our home loan and investment property loan. Without those regular repayments DW should be able to manage to get by financially. In Australia it is often most cost effective to take out life insurance through your superannuation fund, as the premium is competitive and will be paid out of "pre-tax" dollars. US readers can look up rates on term life insurance from AmericaDirect.com

It's important to shop around for the best rates for equivalent cover (check any exclusions and provisions carefully) as there can be considerable variation, and it's important to find the lowest term life insurance rates.

The AmericaDirect.com site has some useful information about the types of insurance, insurance terminology and some FAQs about how different life events (eg. divorce, poor health) can affect your decisions about life insurance. They also have a "Decision Maker" which is a series of questions to help you decide what type of insurance you need. You can also get quotes from the site to verify if they are providing affordable online life insurance.

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