Estimating Insurance Needs
Regardless of whether you're single or married, you'll need to figure out your expenses, and plan for the future.

If you have dependents, you must buy enough insurance to replace the income you currently generate for them, and also compensate for any additional expenses they might incur to replace the services you presently provide.

Although there isn’t any specific formula to estimate life insurance needs, a quick and basic way to get a rough estimate is to take your annual income and multiply it by 7.

Another key is that your plan should adequately replace the “hidden income” that would be lost at death. Hidden income is income that you receive through your employment that isn’t part of your gross wages. It includes things like your employer’s contribution towards your health insurance premium, the matching contribution to your 401(k) plan, and many other “perks”.

You should also plan for expenses that arise at death. These include funeral costs, taxes and administrative costs associated with “winding up” an estate and passing the property on to heirs.

Short-term or Long-term, which one to buy?
If you are not able to decide on the term of health insurance, you need to have a clear picture of the benefits of both in order to decide on tenure. A short-term health insurance policy is right for those who are currently living in the U.S., waiting for another plan or between jobs. It is also suitable for those without any sort of medical health coverage, and students who have just graduated. The tenure of cover of a short-term health insurance policy ranges from one month to a year.

If you feel that you need an insurance policy for more than a year, it would be useful to take a look at other individual/family health insurance policies. A long-term care health insurance policy helps cover healthcare services used by insured patients who have prolonged illness or disability. Long-term medical care services also cover routine activities like assistance in bathing, dressing, and meals. Neither Medicare nor Employer Health Insurance covers these services. While long-term care insurance policies do pay for such type of services, they are expensive. Before you buy such a policy, be sure that you can afford to pay the premium now as well as later.

Can Group Insurance be categorized under tax incentives?
Group health insurance is tax deductible. Providing health insurance to employees has many advantages. Not only are employees happier, but also they are less likely to switch jobs.

Which Life Quote is right for me?
A life insurance policy protects your family financially if you or your spouse dies. Insurance companies understand that life is constantly changing, so there are a variety of life insurance policies to meet your changing needs. Because many families depend on two incomes just to make ends meet, insurance companies offer policies that can insure more than one person, protecting the total family income.

It is never too early or too late to consider your life insurance options. There are two major types of life insurance—term and whole life. Whole life is sometimes called permanent life insurance, and it encompasses several sub-categories, including traditional whole life, universal life, variable life and variable universal life. Term life insurance provides financial protection for a limited and specified period of time, at a lower cost than permanent life insurance. These policies expire without value if the insured survives the stated time period. Universal life insurance provides death benefits and income tax-deferred savings to help you meet your financial goals while you are living. It has many flexible features and benefits that can change with your changing financial needs. Whole life insurance provides the coverage amount to your beneficiary in the event of your death, as well as cash-value savings you can use during your lifetime.

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