Life Insurance Coverage


The right type and amount of coverage. A quick education on life Insurance (since the focus here is the Canyon). Life Insurance can be grouped into two types, Term and permanent. Term Life Insurance is generally much cheaper, but usually lasts for short periods of time, anywhere from 5 years to as many as 30 years. Permanent Life Insurance Policies can last for the rest of your life, and as you may have guessed, will generally be more expensive. Within the Permanent Life Insurance category you will have several options to choose from, the most common types include, Whole, Variable, and Universal Life Insurance. You may also find a combination of the three.


How much should you get? That is an interesting questions with many opinions, some say you should have enough to cover all current debt, college education, and 10 to 25 times current income. A more popular opinion is to cover all current debts and replace the current income for your spouse. So to make it simple, if you are making $50,000 a year, and you get a get a 5% interest rate if you put money in the bank (today you are lucky if you can get 1% but will go with 5% to make the example easy to understand) then you would require to have $1,000,000 in the Bank. This means if that the $1,000,000 in the bank account at a 5% interest would generate the spouse $50,000 a year for the rest of his/her life. ( If you have a $100,000 income you would then require $2,000,000 in coverage. ) Now, continuing with our example, if you owed $75,000 on a mortgage, and have one child planning to go to a four year state College that would cost $10,000 a year, then the total amount of Insurance needed would be the $1,115,000. (That would cover the mortgage of $75,000, the $40,000 for state college for your child, and the $50,000 in perennial income)


Ok, now that you got the insurance covered lets get back to planning your trip. If you plan to visit the Grand Canyon for a day, a week, or even a month, its crucial…READ MORE