YOUR INSURANCE What Every Consumer Should Know About Life Insurance (NAPSA)—Many people—particularly those with children—rec- ognize that life insurance can help protect their family financially in the event of their death. Still, some delay any action due to their confusion regarding the amountof insurance needed or the types of coverage available. Help is available from the National Association of Insurance Commissioners (NAIC), a voluntary organization of state insurance regulatory officials, which has assembled useful information about insurance on a consumer education Web site called Insure U (www.InsureUVonline.org). Understand The Basics According to the NAIC, there are three key basicsof life insurance: 1. Start by determining how many people are financially de- ee Life Insurance Tips By Life Stage The NAIC’s Insure U Website provides consumers with focused tips based on their needs for different life stages. For example: e Young singles who want to be sure they can getlife insurance later in their lives when they may develop health problems should consider inexpensive term life insurancethat is guaranteed to be renewable. pendent on you, what their major expenses could be and whether you're likely to leave them with substantial debts or estate taxes. 2. Evaluate the two main types of life insurance: term, which pays Young families should consider purchasinglife insurance for both parents, even for a nonworking spouse, to help pay for child care and other domestic services. e Established families should factor in the probable costs of nent life, which provides coverage for your entire life and typically includes both a death benefit and when determining how muchlife insurance they may need. Empty nesters/seniors should evaluate the pros and cons of reducingtheir life insurance coverage a death benefit if you die within a specified time period; and perma- the ability to build up cash value. In general, term insurance is much less expensive than permanentlife insurance. 3. Understand the major factors that affect life premiums. Some are uncontrollable, such as the age at which you purchase a policy or whether you havea serious pre-existing medical problem. Others are directly dependent on behavior, like poor health habits (e.g., smoking or excessive drinking), your driving record or engaging in dangeroushobbies. their children’s college education based on whether their spouse is alive, their homeis paid off or their children and/or grandchildren are financially independent. All consumers should review their life insurance policy annually and updateit to reflect major changes in their lives—such as marriage, the birth of a child, divorce or death of a spouse. For more information, visit Insure U at www.InsureUonline. org.
