Buying Monumental Life Insurance

When you’re looking to buy monumental life insurance, you should look at the size of the insurance policy. How do you know how big the policy should be? Well, there’s no hard and fast rule, but in most cases the death benefit should be around 7-10 times that of your annual income. Although, like any guesstimate, it’s best to take that with a pinch of salt.

If that way of working out the sum from your life insurance payout then you can figure out an annual income you want for your beneficiaries after you pass-on. Once you’ve subtracted the retirement accounts, taxes, pensions and any other forms of income, then you can come to a grand total. There are interactive online tools that can help you arrive at the figure.

Let’s take an example; if the annual income is $25,000, then the regular policy would suggest that a figure of $250,000 should be about right, but as ever, it’s just an estimated amount. If there are special circumstances then you can factor those into the sum total. If you leave a larger margin for error, then buying monumental life insurance can benefit your loved ones and take away the burden of having to sort out finances after your death.

There are many life insurance policies out there and there are even comparison sites that show competing policies. Make sure you buy your policy from a reputable company that has its finances in outstanding shape. If there is a risk of it going out of business before you do, then it can be a headache that you’re better steering clear of. Ask around, check your options with agents and check up on the company’s financial strength.

Once you have these factors in order then you can look at the different types of insurance policy. There are two main types of policies: cash-value insurance, which has an investment component attached to it; and term insurance, which is simple, straight-forward insurance without any investments connected to it. The latter is ‘safer’ as there is less risk, but there is always a risk of the company going out of business due to unforeseen circumstances.

Another reason to buy monumental life insurance is that it is a tax-free package. It means that you can tip your surplus income into a policy and save yourself from tax. It might be a good idea to have a meeting with an accountant as they can advise on where to put your money so you only pay tax on what you’re meant to. An accountant can give you impartial advice compared to an insurance agent, but it’s best to speak to both so you can make an informed decision.

When it’s your time to go, you want to have your finances in order for your family so they don’t have to carry any burden after you die. Having the right kind of policy and taking the precaution of monumental life insurance can ensure there aren’t any shortfalls when it comes to pay-out time.