LEARNING THE BASICS:
You and I would agree that the best way to make an informed decision about buying life insurance is to become familiar with the basics. You need to ask yourself the following questions.
Why do I need a life insurance?
What are my motives?
What are my goals?
Who is to benefit, should anything happen to me?
Now to answer the first question, life insurance is simply an essential part of financial planning. One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. The money provided by life insurance also can insure that your dependents are not burdened with significant dept when you are no more. Life insurance proceeds could means that your dependents won’t have to sell assets to pay outstanding bills or taxes. An important feature of life insurance is that no income tax is payable on proceeds paid to beneficiaries.

HOW MUCH LIFE INSURANCE DO I NEED:
Before buying life insurance, you should assemble personal financial information and review your family’s need. There are a number of factors to consider when contemplating how much you should acquire. These include any immediate needs at the time of death, such as final illness expenses, burial cost and estate taxes. Funds for a readjustment period , to finance a move or a family’s financial needs such as monthly bills, day care costs for the kids, college
tuition or retirement. Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs. One rule or thumb is to Buy a life insurance that is equal to five or seven times your annual gross income.