The two classic types of life insurance are whole life and term life insurance. These two types of insurance are very easy to understand and are pretty much the most popular types of insurance around. However, there is a newer type of insurance that is gaining popularity, especially with younger couples due to many reasons.

The reason that universal life insurance is gaining popularity is that it is a nice blend of both whole life and term life insurance. Universal life insurance offers the low rates of term life insurance but gives you the guarantee of continual insurance until your death just like whole life insurance. However, you must be careful when purchasing the policy and that you fully understand how the policy works. Let me break it down here for you.

Whether you are a fan of life insurance or not, there is one thing that you should always purchase life insurance on. That one thing is life insurance on your mortgage. No matter what, your house is going to be your largest asset that you own. You need to protect your largest asset against any type of possible financial strain. Let me point out the benefits to mortgage insurance and what the best type to buy is.

Mortgage life insurance is exactly what you would think it is. It will pay off your mortgage in the event of your death and sometimes if you become permanently disabled. The benefits of mortgage insurance are also very easy to see. The insurance will pay off the balance of your mortgage and it is usually very cheap. Also, due to the nature and how it is offered, it is usually very easy to qualify for.

Mortgage life insurance can be bought in a few ways. The most common way if from an insurance agent and this may be the best way to do it. If you purchase from an agent, you can purchase either level or decreasing term insurance to cover the mortgage and you will see how little the difference is. Most of the time, it is more beneficial to purchase level term insurance to cover your mortgage through an agent for a couple of reasons. The first being that the insurance will be paid directly to you and not the mortgage company in case you need some extra money for other expenses. Also, level insurance means you will get the full mortgage amount instead of the decreased amount to help with other bills.

The other way to purchase mortgage is directly from the mortgage company. This will be the cheapest, easiest and most convenient way to buy the insurance though also the most restricting. The insurance will be rolled into your payment so there is no need for separate payments. However, the insurance only covers the mortgage amount and is paid directly to the company. You still get to keep your home, which is the greatest concern of them all.

In short, buying mortgage life insurance is key to having a sound financial plan. There are many ways to buy the insurance, so it is really up to your personal feelings on which way you would like to go. Buying level insurance if you can qualify for it will be your best bet, but you will need to ultimately do what is best for you.

Having a well rounded or well blended insurance plan will be in the best interest of your family in the untimely event of your death. Not having enough money to take care of major bills such as a house, car or even schooling can be a major problem to a loved one, one that can be avoided with simple planning.

A lot of people will ask the question of how much insurance do I need. To be honest, it all depends on you and your wants and needs. Many companies like to come out to your home and do a Financial Needs Analysis or some other junk that they like to throw at you. What they do in an hour can be summed up to in about a 5-10 minute consultation. All the rest is simply filler, sales pitches and small talk trying to gain your trust. I will break down exactly what they go through in a brief amount of time here so that you can choose your insurance or at least get a head start when talking to an insurance agent.

The first step you need to take is to assess your current situation. You need to gather your major assets together, like your home, car and other valuables. You will also need to know your current balance on these items as well as your current income. You will also need to gather your current insurance policies together from both work and you’re your personal purchases. Knowing your premium and death benefits on your current plans is a must in planning for your future. Also, knowing your Social Security income if you were to pass away today is a good start as well.

Once you have them gathered together, you need to sit down and start writing down what you want your spouse and family to have after your death. Here are some of the normal questions you will hear from an insurance agent about these items.

1. Do you want to leave an education fund for your children?
2. Do you want to pay off your current mortgage?
3. Do you want to pay off all your debts, including cars and credit cards?
4. Do you want your final expenses paid for?
5. Do you want to leave an income for your spouse in addition to any Social Security benefit you may receive?
6. Do you want to leave any money to a favorite charity or church?
7. Do you want to leave money for any other reason?

These are all the major questions that you will be asked by basically any insurance agent. These are the great questions and need to be addressed, but it is always nicer to discuss this with your spouse before talking with an insurance agent and them badgering you for the highest amount possible.

Now that you have the questions and answers to your major needs, how do you know how much insurance you need? Some professionals will just tell you to multiply your income by 8-10 times and then purchase that amount in term life insurance. That is a close estimate but not good for all situations.

Term life insurance is good for covering most of the questions that we covered. Term life is great for temporary debts like income loss, mortgage, installment loans and childcare but not for permanent ones like final expenses and charitable contributions. Make sure you get enough insurance to cover the temporary debts but also make sure you get a whole life policy to cover your final expenses at the very least.

By doing this assessment in the comfort of your own home, it will be a lot easier and less stressful without having an insurance agent there trying to sell you as much as possible. Once you have the answers, you can decide whether to purchase from a local agent or if you want to purchase your new policies online. Purchasing online will save you money but you will not get the personal service of an agent. Personally, they both have advantages, so do whatever you are comfortable with.