Choosing the Right Type of Life Insurance

Once the reasons for choosing a life insurance policy are out of the way and you are seriously considering the different types of Vermont life insurance available how do you know which one to choose? Well the reasons for getting a policy are varied and the rewards for the different policy types matter as well. Generally speaking a whole life policy will cost you less if you live a long time, and a term policy, though much less expensive up front (if you are young), is less likely to actually be paid out by an insurance company. During a study over a period of several years less than 1% of all active term policies were actually paid out.

Who is the Insurance For?

If you are a stay at home mother or father, your contribution to the family is different, but no less important (and no less needing of a life insurance policy) than the working spouse in your family. It is easy to k now what a policy to replace the breadwinner's income is going to be used for when choosing a Vermont life insurance policy type, but what about replacing the work that the stay at home parent does?

Consider that a working spouse will have to find (and likely pay for) someone to watch the kids while they are at work during the day and/or evenings. Consider that they will be tired and can probably use the help of at least part-time cleaning services to help around the home. Consider that clothing that may have been cared for and mended by a deceased stay at home spouse, will have to be professionally tended or will wear out more quickly, requiring replacement. Consider that someone will have to drive the children to their soccer, piano, ballet, gymnastics, football, cheerleading practice and games from now on. And of course consider your own needs as a widow(er). The emotional toil of losing a loved spouse can be severe and you may require your own professional help or someone to talk to in order to help cope and deal with the extreme stress of the situation.

How Much Will You Need?

Starting with the obvious - the funeral expenses, a good Vermont life insurance policy will at least include enough to manage your average burial which currently hovers around $7,000. If you want to get fancy with your remains (such as having your ashes launched into space), obviously you will have to plan for a bit more. Your children (if any) will need to go to college, and any income you were bringing in will need to be replaced. A good estimate for how much life insurance you should buy is 10 times your income level, and if you are the stay at home spouse the number is 10 times your spouse's income level, so if you make $50,000 per year then a $500,000 policy should be the minimum that you consider.