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Term life insurance has it's setbacks. However, taking a few precautions will help you get the best from it. But before we go into things that will ensure this, I'll give an advice that applies to all insurance policies you buy...
Get your term life insurance policy from an insurance company that has an excellent reputation. Doing otherwise may prove fatal. Use resources like The Better Business Bureau (BBB) to check an insurer's track record.
Yes, it's true that policy holders of term life insurance could finally become uninsurable at the termination of their present term life policy. This however, could be covered if you get a term life insurance policy that is convertible to another life insurance policy and/or has guaranteed renewal as a feature. This option, nevertheless, cost you more.
If your policy has a guaranteed renewal feature your insurer has no option but to allow you to renew your term life insurance policy whenever it expires.
Another setback is the fact that you'll have to die to get the benefit. If you live to the end of the term, no benefit would be given. If a term life policy should expire by 26th of July, 2007 a full death benefit would be given if an insured dies by 11.45P.M 26th of July, 2007. However if the policy holder dies by 1.45am 27th of July, 2007 (2 hours afterwards) not even a dime would be received!
You can deal with this by again getting a term life policy that's convertible. If you get an option that is convertible, you can change over to whole life insurance thus taking advantage of the best of both worlds. If you are below forty-five, you can easily buy a term life insurance policy when you are in need of life insurance coverage but have little money to spare and later change over to permanent life insurance as your finance gets better.
Now, here's how to save on term life or any other insurance policy...
You will save much if you only have between 15-30 minutes. Visit, obtain and compare quotes from various quotes sites. An insurance quotes site could return quotes that show a difference of over $2,000 between the highest term life insurance quote and the lowest.
Get your term life insurance quotes now from these highly recommended sites...
Free Affordable Life Insurance Quotes
Hometown Life Insurance Quotes
Chimezirim Odimba writes on life insurance.
Saturday, 22 December 2007
Term vs Whole Life vs Universal Life Insurance - Compare Life Insurance For Your Best Buy!
Term Life Insurance
Just as the name, term life insurance says, this type of life insurance is purchased to last a set amount of time, or a term. Terms may be from one year to 30 years. The amount of time that the life insurance is purchased for should represent the time that an insured person feels they need that coverage. Sometimes people use the length of their home mortgage and sometimes they think about how many years their children will depend upon them for support.
Since the life insurance company only takes on liability for a set amount of time, they will offer larger face amounts for less money. After all, the life insurance company will require an application, and possibly back that up with other research on a potential customer's general health. They will take an application, and only offer life insurance to people that they believe will survive the term of the policy. Of course, longer terms will usually cost more than shorter terms. But the fact that a term exists, means that this sort of life insurance will cost less than any permanent insurance for the same face value of death benefits.
Whole Life Insurance
Whole life insurance is the traditional form of life insurance. It does not expire at a set term, but as long as it is paid up, will last for an insured person's whole life. It can also build up a cash value that can be taken out or borrowed against. In this way, whole life is not just insurance, but can also become an asset.
Whole life insurance is, of course, more expensive for large amounts than term life for the same individual and death benefit. However, in small amounts, it can be an affordable way to purchase life insurance that will settle final expenses for an older person, or a person with health issues. Many people purchase final expense or burial policies for senior citizens, and these are simply smaller face value whole life insurance policies.
Of course, children are fairly cheap to insurance. The purchase of a whole life policy on a child would give them the gift of lifetime protection. Sometimes these policies can be paid off over a set amount of time, and the child will have a valuable asset and protection when they get older!
Universal Life Insurance
Universal life insurance is a new product, and is more complicated. It is permanent life insurance, but can also have a term insurance rider. For instance, a man with three kids may want extra protection while his children are young. Then, when he anticipates that his children will not depend upon him, he may drop the extra term life, and just have the permanent life insurance.
The central thing about universal life insurance is that it is also used as an investment. Policies may be tied to market rates, so any money put into the policy, that is not needed to pay for the current life insurance bill could grow as an investment. This can increase the value of the policy's cash amount, and even increase the face value or death benefit of the life insurance.
Term Life vs Whole Life Vs Universal Life
So which is better? Well, that depends upon your own needs, expectations, the type of insurance you can qualify for, and your budget. You need to decide if you only need life insurance for a set amount of time, or if you would like protection for your whole life. Do you want to use life insurance as an investment? Do you want some combination?
Compare Term vs Whole Life vs Universal Life Insurance with our free online life insurance quote form!
http://www.247QuoteUS.com
Just as the name, term life insurance says, this type of life insurance is purchased to last a set amount of time, or a term. Terms may be from one year to 30 years. The amount of time that the life insurance is purchased for should represent the time that an insured person feels they need that coverage. Sometimes people use the length of their home mortgage and sometimes they think about how many years their children will depend upon them for support.
Since the life insurance company only takes on liability for a set amount of time, they will offer larger face amounts for less money. After all, the life insurance company will require an application, and possibly back that up with other research on a potential customer's general health. They will take an application, and only offer life insurance to people that they believe will survive the term of the policy. Of course, longer terms will usually cost more than shorter terms. But the fact that a term exists, means that this sort of life insurance will cost less than any permanent insurance for the same face value of death benefits.
Whole Life Insurance
Whole life insurance is the traditional form of life insurance. It does not expire at a set term, but as long as it is paid up, will last for an insured person's whole life. It can also build up a cash value that can be taken out or borrowed against. In this way, whole life is not just insurance, but can also become an asset.
Whole life insurance is, of course, more expensive for large amounts than term life for the same individual and death benefit. However, in small amounts, it can be an affordable way to purchase life insurance that will settle final expenses for an older person, or a person with health issues. Many people purchase final expense or burial policies for senior citizens, and these are simply smaller face value whole life insurance policies.
Of course, children are fairly cheap to insurance. The purchase of a whole life policy on a child would give them the gift of lifetime protection. Sometimes these policies can be paid off over a set amount of time, and the child will have a valuable asset and protection when they get older!
Universal Life Insurance
Universal life insurance is a new product, and is more complicated. It is permanent life insurance, but can also have a term insurance rider. For instance, a man with three kids may want extra protection while his children are young. Then, when he anticipates that his children will not depend upon him, he may drop the extra term life, and just have the permanent life insurance.
The central thing about universal life insurance is that it is also used as an investment. Policies may be tied to market rates, so any money put into the policy, that is not needed to pay for the current life insurance bill could grow as an investment. This can increase the value of the policy's cash amount, and even increase the face value or death benefit of the life insurance.
Term Life vs Whole Life Vs Universal Life
So which is better? Well, that depends upon your own needs, expectations, the type of insurance you can qualify for, and your budget. You need to decide if you only need life insurance for a set amount of time, or if you would like protection for your whole life. Do you want to use life insurance as an investment? Do you want some combination?
Compare Term vs Whole Life vs Universal Life Insurance with our free online life insurance quote form!
http://www.247QuoteUS.com
Term Life Insurance And What Happens When You Do Not Die?
We all know that we should have some sort of life insurance. Even though we do not want to die in the next few decades, or even like to think it is possible, we know that we are risking our family's security by totally ignoring the possibility. However some people are so confused by the different types of life insurance that they end up putting of the purchase. The longer you do put off a life insurance purchase, the longer you risk your family's security. And of course, life insurance only gets more expensive and harder to obtain the older you are!
Of course, term life insurance is one of the most popular forms of life insurance because the premiums are usually the most affordable. This is especially true during the working years when most people have the largest need for life insurance. The problem is this. Most term policies are purchased for a length of time, or term, of 10 to 30 years. Before a life insurance company offers to accept an applicant, they will do some underwriting. In other words, the life insurance company will examine the risk that the person will actually die during that term. What the company wants are people who are likely to live. Of course, they want to accept your premiums for a term of time, and they do not want to pay out the death benefit!
This may not seem that attractive to a customer, and even though the premiums are low, many consumers find it difficult to get excited about parting with a portion of their hard earned money for a benefit that everybody hopes will never be used! However, many life insurers are coming up with an attractive solution to this problem. This is called a Return of Premium (ROP) rider. It is attached to a term policy, and it does add a little to the cost. However, with a ROP rider, the policy owner will get their premiums totally refunded if they survive the term!
Do the math. Instead of paying out $30 a month for a twenty year term policy and ending up with nothing for your payments, you will get $7200 back! Some of the companies will even offer to use that money to purchase a permanent life insurance policy for you, or of course, you can take it in the form of a check! It is pretty painless to shell out $30 a month for most people, but it is a nice reward to get over $7,000 back!
When I present this option, really the only question clients have is if any interest is paid. Some people want everything! No, look at it like the interest is the fact that you have life insurance! But otherwise, you can calculate your refund with a very simple formula! So if you object to paying for term life insurance that you hope you will never use, why not look into getting your premiums refunded with a return of premium policy?
Check out our free Return Of Premium Life Insurance Calculator to see how big of a check you can get just for outliving your life insurance! Also take about 3 minutes to Compare Life Insurance Rates with our Free Quote Form!
http://247quoteus.com/rop-term.html
Of course, term life insurance is one of the most popular forms of life insurance because the premiums are usually the most affordable. This is especially true during the working years when most people have the largest need for life insurance. The problem is this. Most term policies are purchased for a length of time, or term, of 10 to 30 years. Before a life insurance company offers to accept an applicant, they will do some underwriting. In other words, the life insurance company will examine the risk that the person will actually die during that term. What the company wants are people who are likely to live. Of course, they want to accept your premiums for a term of time, and they do not want to pay out the death benefit!
This may not seem that attractive to a customer, and even though the premiums are low, many consumers find it difficult to get excited about parting with a portion of their hard earned money for a benefit that everybody hopes will never be used! However, many life insurers are coming up with an attractive solution to this problem. This is called a Return of Premium (ROP) rider. It is attached to a term policy, and it does add a little to the cost. However, with a ROP rider, the policy owner will get their premiums totally refunded if they survive the term!
Do the math. Instead of paying out $30 a month for a twenty year term policy and ending up with nothing for your payments, you will get $7200 back! Some of the companies will even offer to use that money to purchase a permanent life insurance policy for you, or of course, you can take it in the form of a check! It is pretty painless to shell out $30 a month for most people, but it is a nice reward to get over $7,000 back!
When I present this option, really the only question clients have is if any interest is paid. Some people want everything! No, look at it like the interest is the fact that you have life insurance! But otherwise, you can calculate your refund with a very simple formula! So if you object to paying for term life insurance that you hope you will never use, why not look into getting your premiums refunded with a return of premium policy?
Check out our free Return Of Premium Life Insurance Calculator to see how big of a check you can get just for outliving your life insurance! Also take about 3 minutes to Compare Life Insurance Rates with our Free Quote Form!
http://247quoteus.com/rop-term.html
Friday, 21 December 2007
30 Year Term Life Insurance -- Worth Taking a Look?
We all know that one of the perks of purchasing a term life insurance policy, aside from the fact that it is usually cheaper than purchasing a whole life insurance policy, is that we can choose how long we want the term life insurance policy to be in effect. We get to choose when the term life insurance policy expires, and generally we can choose for our term life insurance policies to last anywhere between one year and thirty years.
If we have such flexibility choosing the length of our term life insurance policies, why should we consider choosing a 30-year term life insurance policy? Well, there is a reason you are interested in purchasing a term life insurance policy in the first place. Maybe you like the flexibility of term life insurance policies; maybe you like the affordability. Maybe you only need life insurance for a certain number of years due to an illness or some kind of debilitating health condition. Maybe you just like the fact that with a term life insurance policy, you know that you are not subject to a “forced savings component” that comes with whole life insurance policies. In any event, you want a term life insurance policy, and by purchasing a 30-year term life insurance policy, you can rest assured knowing that you are going to be covered for the next 30 years.
It’s true that there is no cash value that accumulates with a 30-year term life insurance policy; however, at the end of the 30 years, you can renew your term life insurance policy even if you do not have evidence of insurability – your premiums may increase annually, but you can renew it.
Purchasing some kind of life insurance policy, whether it be a term life insurance policy or a whole life insurance policy, is a responsible decision to make; one that will be beneficial to both you, and your family.
Affordable Car Insurance Home owners Insurance Affordable Health Insurance
If we have such flexibility choosing the length of our term life insurance policies, why should we consider choosing a 30-year term life insurance policy? Well, there is a reason you are interested in purchasing a term life insurance policy in the first place. Maybe you like the flexibility of term life insurance policies; maybe you like the affordability. Maybe you only need life insurance for a certain number of years due to an illness or some kind of debilitating health condition. Maybe you just like the fact that with a term life insurance policy, you know that you are not subject to a “forced savings component” that comes with whole life insurance policies. In any event, you want a term life insurance policy, and by purchasing a 30-year term life insurance policy, you can rest assured knowing that you are going to be covered for the next 30 years.
It’s true that there is no cash value that accumulates with a 30-year term life insurance policy; however, at the end of the 30 years, you can renew your term life insurance policy even if you do not have evidence of insurability – your premiums may increase annually, but you can renew it.
Purchasing some kind of life insurance policy, whether it be a term life insurance policy or a whole life insurance policy, is a responsible decision to make; one that will be beneficial to both you, and your family.
Affordable Car Insurance Home owners Insurance Affordable Health Insurance
30 Year Term Life Insurance -- Worth Taking a Look?
We all know that one of the perks of purchasing a term life insurance policy, aside from the fact that it is usually cheaper than purchasing a whole life insurance policy, is that we can choose how long we want the term life insurance policy to be in effect. We get to choose when the term life insurance policy expires, and generally we can choose for our term life insurance policies to last anywhere between one year and thirty years.
If we have such flexibility choosing the length of our term life insurance policies, why should we consider choosing a 30-year term life insurance policy? Well, there is a reason you are interested in purchasing a term life insurance policy in the first place. Maybe you like the flexibility of term life insurance policies; maybe you like the affordability. Maybe you only need life insurance for a certain number of years due to an illness or some kind of debilitating health condition. Maybe you just like the fact that with a term life insurance policy, you know that you are not subject to a “forced savings component” that comes with whole life insurance policies. In any event, you want a term life insurance policy, and by purchasing a 30-year term life insurance policy, you can rest assured knowing that you are going to be covered for the next 30 years.
It’s true that there is no cash value that accumulates with a 30-year term life insurance policy; however, at the end of the 30 years, you can renew your term life insurance policy even if you do not have evidence of insurability – your premiums may increase annually, but you can renew it.
Purchasing some kind of life insurance policy, whether it be a term life insurance policy or a whole life insurance policy, is a responsible decision to make; one that will be beneficial to both you, and your family.
Affordable Car Insurance Home owners Insurance Affordable Health Insurance
If we have such flexibility choosing the length of our term life insurance policies, why should we consider choosing a 30-year term life insurance policy? Well, there is a reason you are interested in purchasing a term life insurance policy in the first place. Maybe you like the flexibility of term life insurance policies; maybe you like the affordability. Maybe you only need life insurance for a certain number of years due to an illness or some kind of debilitating health condition. Maybe you just like the fact that with a term life insurance policy, you know that you are not subject to a “forced savings component” that comes with whole life insurance policies. In any event, you want a term life insurance policy, and by purchasing a 30-year term life insurance policy, you can rest assured knowing that you are going to be covered for the next 30 years.
It’s true that there is no cash value that accumulates with a 30-year term life insurance policy; however, at the end of the 30 years, you can renew your term life insurance policy even if you do not have evidence of insurability – your premiums may increase annually, but you can renew it.
Purchasing some kind of life insurance policy, whether it be a term life insurance policy or a whole life insurance policy, is a responsible decision to make; one that will be beneficial to both you, and your family.
Affordable Car Insurance Home owners Insurance Affordable Health Insurance
Whole Life Insurance Explained - This Is How Whole Life Insurance Works
Several people have asked me to explain how Whole Life Insurance works recently, so I decided to do it in an article so everyone could read it and I could answer everyone's question at the same time. Also, you can always refer back to this article if you ever have any questions. Fair enough? Then let's get started!
Whole Life Insurance is a type of policy that is meant to provide life insurance protection for a person's entire life or until they reach the age of 100 years, whichever comes first. This is a permanent type of life insurance policy, which means that you'll be paying on it for as long as you live, unless you happen to get a specific policy where you can pay it off early, such as a "Paid At 60" policy. These types of policies charge much higher premiums, however you'll only pay on them for a specified period of time and be finished. Anyway, I don't want to get too far off track.
A Whole Life Insurance policy requires that you take a physical exam, in most cases. Before a company is going to provide insurance coverage they're going to want to know if there are any physical ailments that they should be aware of first. Some of these may disqualify you from being covered, such as AIDS, Cancer, Heart Disease, Diabetes and more.
When you pay into a Whole Life Insurance policy, a portion of your premium payments go toward buying insurance, while the rest goes into a savings account that accrues cash value. This cash value will accumulate and begin to draw interest over time. This will actually build into an asset that you can use as collateral or borrow from. You must repay the loan in order for the entire face value of the policy to be paid out in the event of your death.
Whole Life Insurance isn't as popular as it used to be. Many people are now choosing to buy Term Life instead because they're finding that they don't need to be covered for their whole life, because it's less expensive and because they prefer to invest their money elsewhere. You should get several free life insurance quotes and then talk to an agent to determine which plan is the best choice for you and your family.
You Can Learn More About Whole Life Insurance Options And Even Get Free Life Insurance Quotes Right Now At TheLifeInsuranceGuys.com or by clicking on Whole Life Insurance Explained Rick Stevens Is A Former Life And Health Agent That Now Works Helping Others By Providing Free Information. Visit His Website Today!
Whole Life Insurance is a type of policy that is meant to provide life insurance protection for a person's entire life or until they reach the age of 100 years, whichever comes first. This is a permanent type of life insurance policy, which means that you'll be paying on it for as long as you live, unless you happen to get a specific policy where you can pay it off early, such as a "Paid At 60" policy. These types of policies charge much higher premiums, however you'll only pay on them for a specified period of time and be finished. Anyway, I don't want to get too far off track.
A Whole Life Insurance policy requires that you take a physical exam, in most cases. Before a company is going to provide insurance coverage they're going to want to know if there are any physical ailments that they should be aware of first. Some of these may disqualify you from being covered, such as AIDS, Cancer, Heart Disease, Diabetes and more.
When you pay into a Whole Life Insurance policy, a portion of your premium payments go toward buying insurance, while the rest goes into a savings account that accrues cash value. This cash value will accumulate and begin to draw interest over time. This will actually build into an asset that you can use as collateral or borrow from. You must repay the loan in order for the entire face value of the policy to be paid out in the event of your death.
Whole Life Insurance isn't as popular as it used to be. Many people are now choosing to buy Term Life instead because they're finding that they don't need to be covered for their whole life, because it's less expensive and because they prefer to invest their money elsewhere. You should get several free life insurance quotes and then talk to an agent to determine which plan is the best choice for you and your family.
You Can Learn More About Whole Life Insurance Options And Even Get Free Life Insurance Quotes Right Now At TheLifeInsuranceGuys.com or by clicking on Whole Life Insurance Explained Rick Stevens Is A Former Life And Health Agent That Now Works Helping Others By Providing Free Information. Visit His Website Today!
Whole Life Insurance Explained - The Pros & Cons Of Whole Life Insurance
Whole life insurance is a type of policy that provides you with insurance protection for the rest of your life, from the time you actually purchase the policy, until the day you either pass away, you stop making the premium payments or you reach the age of one hundred years. At that point, the insurance company will pay the owner of the policy 100% of the face value, which will also be the cash value. Therefore this type of policy insures you for your "whole life".
One of the interesting things about Whole life insurance is that it also builds what is called "cash value" over time. This cash value should not be confused with the "face value" of the policy. Let me explain the difference between the two.
Face Value = the amount of money that the insurance policy is supposed to provide in the event of the death of the insured person. In other words, if the amount of coverage you're buying is for $50,000, then the face value is $50,000. If the person was insured for $100,000, then the face value of the policy would be $100,000. Whatever the amount is that the policy is supposed to pay is the face value.
Cash Value = the actual amount that the policy is worth. Cash value will grow over time within a Whole Life policy, however, it will never reach the Face Value amount of the policy unless the insured individual reaches 100 years of age. At this point the policy has fully "matured".
The way that Cash Value works is that a portion of the money paid into a Whole life policy goes toward buying insurance, while the remainder goes into an interest bearing account. This money can be borrowed against later in life, if you choose to do so and can be used for practically any purpose, however, just like any other loan it must be repaid.
Whole life insurance isn't as popular as it once was. These days many people are buying Term life instead because it's less expensive and also because that way they're buying only "pure" insurance and can make the decision to invest their money elsewhere. You can always start out buying Term and upgrade to a Whole life insurance policy later in life, if you choose to. The decision is yours.
Joe Stewart Has Worked As A Life And Health Insurance Agent In The Pacific Northwest. Learning About Life Insurance Has Never Been Easier. Visit His Website Right Now At TheLifeInsuranceGuys.com or by clicking on Whole Life Insurance Explained
One of the interesting things about Whole life insurance is that it also builds what is called "cash value" over time. This cash value should not be confused with the "face value" of the policy. Let me explain the difference between the two.
Face Value = the amount of money that the insurance policy is supposed to provide in the event of the death of the insured person. In other words, if the amount of coverage you're buying is for $50,000, then the face value is $50,000. If the person was insured for $100,000, then the face value of the policy would be $100,000. Whatever the amount is that the policy is supposed to pay is the face value.
Cash Value = the actual amount that the policy is worth. Cash value will grow over time within a Whole Life policy, however, it will never reach the Face Value amount of the policy unless the insured individual reaches 100 years of age. At this point the policy has fully "matured".
The way that Cash Value works is that a portion of the money paid into a Whole life policy goes toward buying insurance, while the remainder goes into an interest bearing account. This money can be borrowed against later in life, if you choose to do so and can be used for practically any purpose, however, just like any other loan it must be repaid.
Whole life insurance isn't as popular as it once was. These days many people are buying Term life instead because it's less expensive and also because that way they're buying only "pure" insurance and can make the decision to invest their money elsewhere. You can always start out buying Term and upgrade to a Whole life insurance policy later in life, if you choose to. The decision is yours.
Joe Stewart Has Worked As A Life And Health Insurance Agent In The Pacific Northwest. Learning About Life Insurance Has Never Been Easier. Visit His Website Right Now At TheLifeInsuranceGuys.com or by clicking on Whole Life Insurance Explained
The Pro's & Con's Of Buying Whole Life Insurance
Whole Life Insurance is a permanent type of life insurance that is designed to last until the day you pass away. In other words, your "whole life" or until you reach the age of one hundred years, whichever comes first.
Whole Life policies provide life insurance coverage and also establish a savings account that will build up cash value over time. This is how it works. Each month that you pay your premiums a portion of what you pay goes toward buying insurance and the rest goes into your savings account. Many states require that you show cash value in your account within at least three years from the time the policy was established.
The good thing about having this savings account is that you can borrow against it later in life. You could use it for home repairs, college for the kids (or yourself), home improvement, second honeymoon or whatever it may be that you want to do. However, you must pay the loan back if you want your life insurance policy to pay out in full.
The pro's of Whole Life Insurance is that it provides guaranteed protection for as long as you live and maintain the premium payments faithfully. Also, you'll build cash value that you can borrow against later in life.
The con's of a Whole Life Insurance policy are exactly what the pro's are. What, you say? Let me explain.
For one thing, in this day and age many people don't necessarily need a life insurance policy to cover them for their whole life. What if they have no kids? What if they're single? What if all of their assets are paid off and they already own a burial policy? There are several intangibles to consider.
Also, why would you want to use a life insurance policy for your savings account? There are much better ways of investing your money that will give you a higher return than any Whole Life policy will.
The bottom line is that, depending on your situation you should look at both Whole Life and Term Life Insurance and sit down with an agent to determine which is going to be the best option for you.
Rick Stevens is a former Life And Health agent from Washington state. Get more tips about life insurance Right Now by visiting http://www.TheLifeInsuranceGuys.com/ or by simply clicking on Whole Life Insurance
Whole Life policies provide life insurance coverage and also establish a savings account that will build up cash value over time. This is how it works. Each month that you pay your premiums a portion of what you pay goes toward buying insurance and the rest goes into your savings account. Many states require that you show cash value in your account within at least three years from the time the policy was established.
The good thing about having this savings account is that you can borrow against it later in life. You could use it for home repairs, college for the kids (or yourself), home improvement, second honeymoon or whatever it may be that you want to do. However, you must pay the loan back if you want your life insurance policy to pay out in full.
The pro's of Whole Life Insurance is that it provides guaranteed protection for as long as you live and maintain the premium payments faithfully. Also, you'll build cash value that you can borrow against later in life.
The con's of a Whole Life Insurance policy are exactly what the pro's are. What, you say? Let me explain.
For one thing, in this day and age many people don't necessarily need a life insurance policy to cover them for their whole life. What if they have no kids? What if they're single? What if all of their assets are paid off and they already own a burial policy? There are several intangibles to consider.
Also, why would you want to use a life insurance policy for your savings account? There are much better ways of investing your money that will give you a higher return than any Whole Life policy will.
The bottom line is that, depending on your situation you should look at both Whole Life and Term Life Insurance and sit down with an agent to determine which is going to be the best option for you.
Rick Stevens is a former Life And Health agent from Washington state. Get more tips about life insurance Right Now by visiting http://www.TheLifeInsuranceGuys.com/ or by simply clicking on Whole Life Insurance
Work from Home: Real Money Advantages
with your loved ones and/or your loved activities. I can’t tell you how to put a dollar amount on it. But it’s probably like this: $$$$$$$$$$$$$$$$$$$.
We are talking about time. Time is the most important factor when you compare working from home versus working a regular 9-5 job. If you hate the day to day grind of working a normal job and you never worked from home you are missing out on one of life’s treasures. It is so limitless only you know what you would do with it. I personally enjoy 3 mile walks with my wife and dog Roxy (the fastest Whippet around). Oh, to be perfectly honest I love golfing with my friend at his country club. The best time to go from 11am to 3pm, if you add the commute times it really takes the WHOLE day. But you what? Time doesn’t matter because I make my own schedule.
However, time is a non-money advantage. Let’s look at some of the real money advantages to determine if working from home is for you. Always weigh your options before making any decision to quit your job. We will look at some of the required actions needed to work from home in my next article.
Some Real Money Advantages: per year
NO MORE COMMUTE! You SAVE the GAS money: depending on the vehicle this is probably save between $$-$$$ per month. $$-$$$$
You SAVE the Wear and Tear on your vehicle. Many people don’t take this factor seriously but it is serious and costly if you’re not factoring it in. Most cars cost at least .25 cents per mile (runs .50 cents to $1 per mile Mercedes AMG). These can surface in repairs or depreciation (i.e.: $25,000 2002 new car price minus current value 2005 $17,000 = $8,000 depreciation). If you add the repairs and upkeep during those years for a vehicle in good working order (average $1000 per year includes, brake pads, regular oil changes, unexpected expenses etc). That’s $11,000 loss for three years. $$$-$$$$$
Ever get a TRAFFIC Ticket because of your commute to and from work? $$-$$$
Does your current employer penalize you for being late? $$-$$$
Auto accidents. Not all of us get into one. But those that do lose money on deductibles, and higher rates. $$$-$$$$
Insurance companies usually charge more money for longer commutes. $-$$$
Cost of inflation. Historically between 4-10%. This means everything costs you more, but rarely do jobs keep up. You see this every time you go to the grocery store, or buy your next car, or car wash etc. Suddenly it feels like you have less money. Trust your instinct or listen to an economist, you do have less money by stores, services etc raising their prices simple translation: inflation. If you own a property this will help but beware. If you don’t own a property, inflation could really hurt. $-$$$$$
No need for lunch money. $$$-$$$$
No need for new wardrobe or keeping wardrobe clean. $$-$$$$
Some Non-Money Advantages: (just a few)
No more boss! You make your own decisions, rules, and disciplinary actions. Not someone else. This is really great if your current boss has those notorious suppressive anti-social characteristics and it all seems directed at you.
More time to work on your own earning power. Most employees are helping their employer to make money. But at the end of the week do you even have time to send a resume or go on an interview for better opportunities? Or read up on other systems to make money? You’ll see how difficult it is to focus and read and experiment etc. There are more complicated ones. Who has time for that?
No day-to-day grind. You may love the grind but it is a true relief when you don’t HAVE to. You’ll make up your own grind working from home. Based on your likes, dislikes and strengths.
Time to work out. Time for 3 mile walks. TIME to study money making systems. Time for networking. Time for higher education.
Efficiency. You won’t spend time cleaning up other peoples mess-ups at work. This really hurts you. It diminishes your self esteem to know that during your normal work day you spend time fixing the problems other people create. This doesn’t even help you and seldom does anyone acknowledge it. It may be the ethical thing to do to help the company. But when your own work suffers. When you have to stay longer than scheduled. It intrudes your own personal integrity to your family and yourself. When you work from home you actually get more efficient. Search for my next article Work From Home: Required Actions for further information.
Independent Thinking. When you are an employee you are affected by a herd mentality. You may not realize how other people you encounter everyday give you wrong data. This then gets filed in your brain and you start operating on it.
The list can go on and on. Number 6 is really my favorite. I’m going on my eighth year working from home. As I get good information, good education and apply solid principles I see great results.
I’m running an experiment on the newest information marketing website turnkey system. The system advertised the typical promises: “help you make money from home with very little money, time and offers plenty of solutions that can cover most of your knowledge deficiencies.” A current example to show anyone who is interested about home based turnkey systems: view an experiment system. See the bank statements to view how profitable or not so profitable.
We are talking about time. Time is the most important factor when you compare working from home versus working a regular 9-5 job. If you hate the day to day grind of working a normal job and you never worked from home you are missing out on one of life’s treasures. It is so limitless only you know what you would do with it. I personally enjoy 3 mile walks with my wife and dog Roxy (the fastest Whippet around). Oh, to be perfectly honest I love golfing with my friend at his country club. The best time to go from 11am to 3pm, if you add the commute times it really takes the WHOLE day. But you what? Time doesn’t matter because I make my own schedule.
However, time is a non-money advantage. Let’s look at some of the real money advantages to determine if working from home is for you. Always weigh your options before making any decision to quit your job. We will look at some of the required actions needed to work from home in my next article.
Some Real Money Advantages: per year
NO MORE COMMUTE! You SAVE the GAS money: depending on the vehicle this is probably save between $$-$$$ per month. $$-$$$$
You SAVE the Wear and Tear on your vehicle. Many people don’t take this factor seriously but it is serious and costly if you’re not factoring it in. Most cars cost at least .25 cents per mile (runs .50 cents to $1 per mile Mercedes AMG). These can surface in repairs or depreciation (i.e.: $25,000 2002 new car price minus current value 2005 $17,000 = $8,000 depreciation). If you add the repairs and upkeep during those years for a vehicle in good working order (average $1000 per year includes, brake pads, regular oil changes, unexpected expenses etc). That’s $11,000 loss for three years. $$$-$$$$$
Ever get a TRAFFIC Ticket because of your commute to and from work? $$-$$$
Does your current employer penalize you for being late? $$-$$$
Auto accidents. Not all of us get into one. But those that do lose money on deductibles, and higher rates. $$$-$$$$
Insurance companies usually charge more money for longer commutes. $-$$$
Cost of inflation. Historically between 4-10%. This means everything costs you more, but rarely do jobs keep up. You see this every time you go to the grocery store, or buy your next car, or car wash etc. Suddenly it feels like you have less money. Trust your instinct or listen to an economist, you do have less money by stores, services etc raising their prices simple translation: inflation. If you own a property this will help but beware. If you don’t own a property, inflation could really hurt. $-$$$$$
No need for lunch money. $$$-$$$$
No need for new wardrobe or keeping wardrobe clean. $$-$$$$
Some Non-Money Advantages: (just a few)
No more boss! You make your own decisions, rules, and disciplinary actions. Not someone else. This is really great if your current boss has those notorious suppressive anti-social characteristics and it all seems directed at you.
More time to work on your own earning power. Most employees are helping their employer to make money. But at the end of the week do you even have time to send a resume or go on an interview for better opportunities? Or read up on other systems to make money? You’ll see how difficult it is to focus and read and experiment etc. There are more complicated ones. Who has time for that?
No day-to-day grind. You may love the grind but it is a true relief when you don’t HAVE to. You’ll make up your own grind working from home. Based on your likes, dislikes and strengths.
Time to work out. Time for 3 mile walks. TIME to study money making systems. Time for networking. Time for higher education.
Efficiency. You won’t spend time cleaning up other peoples mess-ups at work. This really hurts you. It diminishes your self esteem to know that during your normal work day you spend time fixing the problems other people create. This doesn’t even help you and seldom does anyone acknowledge it. It may be the ethical thing to do to help the company. But when your own work suffers. When you have to stay longer than scheduled. It intrudes your own personal integrity to your family and yourself. When you work from home you actually get more efficient. Search for my next article Work From Home: Required Actions for further information.
Independent Thinking. When you are an employee you are affected by a herd mentality. You may not realize how other people you encounter everyday give you wrong data. This then gets filed in your brain and you start operating on it.
The list can go on and on. Number 6 is really my favorite. I’m going on my eighth year working from home. As I get good information, good education and apply solid principles I see great results.
I’m running an experiment on the newest information marketing website turnkey system. The system advertised the typical promises: “help you make money from home with very little money, time and offers plenty of solutions that can cover most of your knowledge deficiencies.” A current example to show anyone who is interested about home based turnkey systems: view an experiment system. See the bank statements to view how profitable or not so profitable.
Life Insurance And Life Assurance Are Not The Same!
The average man in the street assumes that Life Insurance and Life Assurance are names for the same form of insurance. How wrong they are! But don't hang your head in shame, many financial commentators get it wrong too! Life Insurance and Life Assurance perform different financial roles and are poles apart in cost - so it helps to surf for the correct product.
Life Insurance provides you with insurance cover for a specific period of time (known as the policy’s “term”). Then, if you were to die whilst the policy is in force, the insurance company pays out a tax-free sum. If you survive to the end of the term, the policy is finished and has no residual value whatsoever. It only has a value if there is a claim – in that context it’s just like your car insurance!
Life Assurance is different. It is a hybrid mix of investment and insurance. A Life Assurance policy pays out a sum equal to the higher of either a guaranteed minimum underwritten by the policy's insurance provisions or its investment valuation. The value of the investment element is then a reliant on the Insurance Company’s investment performance and length of time you have been paying the premiums.
Each year the insurance company adds an annual bonus to the guaranteed value of your life assurance policy and there is normally an extra “terminal bonus” at the end. Therefore, as the years go by your life assurance policy increases in value as the investment bonuses accumulate. The value of these bonuses are then determined by the insurance company’s investment performance. Once investment value has been assigned to the policy, you can cash it in with the insurance company. However, most people get a far better price for their life assurance policy by selling it to a specialist investment broker rather than cashing it in with the insurance company.
If you were to die during a Life Assurance policy’s term, the policy pays out the higher of either the guaranteed minimum sum or the accumulated value of the annual investment bonuses. However, if you are still living when the policy terminates, you usually get a bigger payout. This is because with most insurance companies, an additional terminal bonus is awarded.
There is a also a specialized form of life assurance called "Whole of Life". These policies remain in force for as long as you live and as such, have no preset term.
There is also a practical difference for the internet user. Whereas you can buy life insurance online, the Financial Services Authority view life assurance as fundamentally an investment product. As such they believe it is best suited to being sold by a Financial Adviser with advice based on the Advisors full understanding of your personal details. Therefore, you will be unable to buy life assurance online. However, you can use the internet to find a suitable financial adviser with whom you can meet and discuss your requirements.
What are Life Insurance polices and Life Assurance policies used for?
Life Insurance is usually a focal point of the family's financial protection. It is ideally suited to ensure that known debts such as a mortgage, are repaid in full in the event of the policyholders death.
When it comes to providing a lump sum for general use in the event that the policyholder were to die whilst the policy was in force, either life insurance or life assurance can be used. The differences are that with life insurance the size of payout would be preset whereas with life assurance it would depend on the guaranteed minimum and the insurance company's investment performance. But remember, at the end of the policy's term life insurance is worthless, whereas life assurance should payout a sizable investment sum. In this context Life Assurance seems far more worthwhile but in practice more people elect for life insurance. Why? It's a matter of cost. Life Insurance is considerably cheaper than Life Assurance. Furthermore, in recent years, investment returns on Life Assurance policies have fallen significantly and many insurance companies have placed penalties for cashing in policies early. This has adversely affected the resale value of Life Assurance policies.
Finally, if you want a product to provide a lump sum on your death whenever that is with a minimum payout guaranteed, you'll probably elect for Whole of Life insurance. It's really a form of lifetime investment with the benefit of a guaranteed minimum. They're particularly useful for Inheritance Tax Planning.
Life Insurance provides you with insurance cover for a specific period of time (known as the policy’s “term”). Then, if you were to die whilst the policy is in force, the insurance company pays out a tax-free sum. If you survive to the end of the term, the policy is finished and has no residual value whatsoever. It only has a value if there is a claim – in that context it’s just like your car insurance!
Life Assurance is different. It is a hybrid mix of investment and insurance. A Life Assurance policy pays out a sum equal to the higher of either a guaranteed minimum underwritten by the policy's insurance provisions or its investment valuation. The value of the investment element is then a reliant on the Insurance Company’s investment performance and length of time you have been paying the premiums.
Each year the insurance company adds an annual bonus to the guaranteed value of your life assurance policy and there is normally an extra “terminal bonus” at the end. Therefore, as the years go by your life assurance policy increases in value as the investment bonuses accumulate. The value of these bonuses are then determined by the insurance company’s investment performance. Once investment value has been assigned to the policy, you can cash it in with the insurance company. However, most people get a far better price for their life assurance policy by selling it to a specialist investment broker rather than cashing it in with the insurance company.
If you were to die during a Life Assurance policy’s term, the policy pays out the higher of either the guaranteed minimum sum or the accumulated value of the annual investment bonuses. However, if you are still living when the policy terminates, you usually get a bigger payout. This is because with most insurance companies, an additional terminal bonus is awarded.
There is a also a specialized form of life assurance called "Whole of Life". These policies remain in force for as long as you live and as such, have no preset term.
There is also a practical difference for the internet user. Whereas you can buy life insurance online, the Financial Services Authority view life assurance as fundamentally an investment product. As such they believe it is best suited to being sold by a Financial Adviser with advice based on the Advisors full understanding of your personal details. Therefore, you will be unable to buy life assurance online. However, you can use the internet to find a suitable financial adviser with whom you can meet and discuss your requirements.
What are Life Insurance polices and Life Assurance policies used for?
Life Insurance is usually a focal point of the family's financial protection. It is ideally suited to ensure that known debts such as a mortgage, are repaid in full in the event of the policyholders death.
When it comes to providing a lump sum for general use in the event that the policyholder were to die whilst the policy was in force, either life insurance or life assurance can be used. The differences are that with life insurance the size of payout would be preset whereas with life assurance it would depend on the guaranteed minimum and the insurance company's investment performance. But remember, at the end of the policy's term life insurance is worthless, whereas life assurance should payout a sizable investment sum. In this context Life Assurance seems far more worthwhile but in practice more people elect for life insurance. Why? It's a matter of cost. Life Insurance is considerably cheaper than Life Assurance. Furthermore, in recent years, investment returns on Life Assurance policies have fallen significantly and many insurance companies have placed penalties for cashing in policies early. This has adversely affected the resale value of Life Assurance policies.
Finally, if you want a product to provide a lump sum on your death whenever that is with a minimum payout guaranteed, you'll probably elect for Whole of Life insurance. It's really a form of lifetime investment with the benefit of a guaranteed minimum. They're particularly useful for Inheritance Tax Planning.
Thursday, 20 December 2007
The Pro's And Con's Of Term Life vs Whole Life Insurance
This is a subject where many people get confused. You know that you need to purchase life insurance, but you're not certain whether you should buy Whole Life or Term insurance. Well, the answer is going to depend on a few things. Let's briefly go over the Pro's and Con's of each type of policy.
Whole Life Insurance
Whole Life insurance is insurance that is designed to give you coverage for your entire life, up until the age of 100. If you make it that far then the insurance company will issue you a check for the "face value" of the policy. The face value is whatever the amount you were actually insured for. Example, if you had a policy that was worth $100,000.00, in the event of your death, you would receive that amount. In this example, $100,000.00 would be the face value. If you were insured for a million dollars, you'd get a million, ect.
Whole Life insurance is more expensive than Term, but it also builds a cash value that you may borrow against, if you wish, later in life. As you pay your premiums a portion goes toward buying life insurance, while the remainder goes into a fund with your name on it. The Pro's of Whole Life is that it does actually build an asset for you. The Con's are that it's more expensive and, honestly, there may be better ways of investing your money than buying Whole Life. This is something that you would need to discuss with a financial advisor before deciding one way or another. They may suggest that you buy Term Life instead and invest the difference.
Term Life Insurance
Term Life is substantially less expensive than Whole Life insurance. The difference is that, unlike Whole Life insurance, Term Life covers you for a specified period of time like a 10 Year Term or 20 Year Term. There are different types of Term Life policies to choose from that offer a broad range of coverage. This allows you a lot of flexibility. You can buy Guaranteed Renewable Term, where you purchase the policy for a specified period of time and, as long as you don't allow the policy to lapse by not making the premium payments, you can renew it again regardless of any health issues that you may have incurred since you first purchased the policy.
The Pro's of Term Life Insurance is that it's very flexible and it's less expensive than Whole Life. The Con's are that it builds no cash value and isn't always guaranteed, depending on the type of policy you purchase.
Make sure to do your homework before you decide which one to buy. You can get free quotes from a few different companies and compare prices until you find something that you are comfortable with. Good luck!
Joe Stewart Is A Webmaster And Former Life And Health Insurance Agent. He's Made Understanding Life Insurance Easy For Others. You Can Get Free Life Insurance Quotes At His Website TheLifeInsuranceGuys.com or by clicking on Affordable Life Insurance Quotes
Whole Life Insurance
Whole Life insurance is insurance that is designed to give you coverage for your entire life, up until the age of 100. If you make it that far then the insurance company will issue you a check for the "face value" of the policy. The face value is whatever the amount you were actually insured for. Example, if you had a policy that was worth $100,000.00, in the event of your death, you would receive that amount. In this example, $100,000.00 would be the face value. If you were insured for a million dollars, you'd get a million, ect.
Whole Life insurance is more expensive than Term, but it also builds a cash value that you may borrow against, if you wish, later in life. As you pay your premiums a portion goes toward buying life insurance, while the remainder goes into a fund with your name on it. The Pro's of Whole Life is that it does actually build an asset for you. The Con's are that it's more expensive and, honestly, there may be better ways of investing your money than buying Whole Life. This is something that you would need to discuss with a financial advisor before deciding one way or another. They may suggest that you buy Term Life instead and invest the difference.
Term Life Insurance
Term Life is substantially less expensive than Whole Life insurance. The difference is that, unlike Whole Life insurance, Term Life covers you for a specified period of time like a 10 Year Term or 20 Year Term. There are different types of Term Life policies to choose from that offer a broad range of coverage. This allows you a lot of flexibility. You can buy Guaranteed Renewable Term, where you purchase the policy for a specified period of time and, as long as you don't allow the policy to lapse by not making the premium payments, you can renew it again regardless of any health issues that you may have incurred since you first purchased the policy.
The Pro's of Term Life Insurance is that it's very flexible and it's less expensive than Whole Life. The Con's are that it builds no cash value and isn't always guaranteed, depending on the type of policy you purchase.
Make sure to do your homework before you decide which one to buy. You can get free quotes from a few different companies and compare prices until you find something that you are comfortable with. Good luck!
Joe Stewart Is A Webmaster And Former Life And Health Insurance Agent. He's Made Understanding Life Insurance Easy For Others. You Can Get Free Life Insurance Quotes At His Website TheLifeInsuranceGuys.com or by clicking on Affordable Life Insurance Quotes
Term Verses Whole Life – When It Comes to Life Insurance It Pays
You have made a wise, responsible decision when you have decided to purchase a life insurance policy.
Life insurance can be an expensive purchase, too; because of this, many people choose not to pay for something they are not required to purchase. However, life insurance is important to both you and your beneficiary.
There are two basic kinds of life insurance – term life insurance and whole life insurance. There are also different kinds of term and whole life insurance policies, which means potential policyholders have a variety of options.
Therefore, consider doing a little research on the different kinds of life insurance policies, and purchase the one that best suits your needs, as well as the needs of your beneficiaries.
Term life insurance policies:
• Are pure life insurance, meaning they normally do not offer any other benefits other than death benefits.
• Offer life insurance protection for a specified amount of time.
• Are generally less expensive than any other kind of life insurance policy.
• Can be purchased as level term life insurance policies, which offer the same death benefit the entire duration of the policy, or decreasing term life insurance policies, which offer death benefits that decrease each year over the duration of the policy.
• May be purchased as “return of premium” policies, which means the policyholder will receive all or a portion of the premium paid over the course of the policy.
Whole life insurance policies:
• Offer not only life insurance coverage, but provide a savings component as well.
• Offer life insurance protection for the rest of the policyholder’s life.
• Are generally more expensive than term life insurance policies.
• Can be used as estate planning tools.
• Can be purchased as traditional whole life insurance policies, universal whole life insurance policies, or variable universal whole life insurance policies, which gives the policyholder a wider range of options from which to choose.
To get free quotes and learn more about insurance please visit the following recommended sites.
Term Verses Whole Life – When It Comes to Life Insurance It Pays
Budget life insurance for seniors
Life insurance information that can save you money
Life insurance can be an expensive purchase, too; because of this, many people choose not to pay for something they are not required to purchase. However, life insurance is important to both you and your beneficiary.
There are two basic kinds of life insurance – term life insurance and whole life insurance. There are also different kinds of term and whole life insurance policies, which means potential policyholders have a variety of options.
Therefore, consider doing a little research on the different kinds of life insurance policies, and purchase the one that best suits your needs, as well as the needs of your beneficiaries.
Term life insurance policies:
• Are pure life insurance, meaning they normally do not offer any other benefits other than death benefits.
• Offer life insurance protection for a specified amount of time.
• Are generally less expensive than any other kind of life insurance policy.
• Can be purchased as level term life insurance policies, which offer the same death benefit the entire duration of the policy, or decreasing term life insurance policies, which offer death benefits that decrease each year over the duration of the policy.
• May be purchased as “return of premium” policies, which means the policyholder will receive all or a portion of the premium paid over the course of the policy.
Whole life insurance policies:
• Offer not only life insurance coverage, but provide a savings component as well.
• Offer life insurance protection for the rest of the policyholder’s life.
• Are generally more expensive than term life insurance policies.
• Can be used as estate planning tools.
• Can be purchased as traditional whole life insurance policies, universal whole life insurance policies, or variable universal whole life insurance policies, which gives the policyholder a wider range of options from which to choose.
To get free quotes and learn more about insurance please visit the following recommended sites.
Term Verses Whole Life – When It Comes to Life Insurance It Pays
Budget life insurance for seniors
Life insurance information that can save you money
Insuring Your Whole Life
Life insurance is a necessity in the world of today. It provides protection to us and to our loved ones. In case of anything untoward happening, we can rest assured that the benefits will go to the right persons. In the world of today, money is security, and a life insurance plan is a good way to be assured about this security. For some people, life insurance is also an investment option. Insurance plans that build cash value and offer tax benefits can be regarded as providing some value for our investment. However, insurance plans are primarily meant to build security. If one is looking for solely an investment option, it makes more sense to look elsewhere.
These days, we can choose from a whole range of life insurance options. At the very basic level, we have a choice between term life insurance (which provides coverage for a specific number of years) and whole life insurance (which provides coverage for one's entire life). While both these have their own pros and cons, I find myself in favor of the whole life insurance option. This has a number of great advantages that is missing in the term life insurance option.
First of all, whole life insurance plans invest part of the amount that is paid as premium and help build cash value. After a period of time, it may so happen that the cash value itself goes into paying for the insurance. This is a major advantage that is not present in the term life option. Moreover, most whole life insurance plans require only a single medical examination. Thus, one is saved from having to periodically go through medical check ups, unless one decides to alter one's current plan. The tax savings that are incurred also work up to a significant amount in this case.
In addition to these advantages, one can also choose between three basic kinds of whole life insurance. The first of these is the traditional whole life insurance. This assures the insurer of a minimum rate of return on his/her cash value. The second type is the whole life insurance policy that is interest-sensitive. In this case, the policy offers a variable rate on one's cash value. The third type is one that involves a single premium. This is suitable for those who have sufficient money to straightaway buy an insurance policy. Thus, even after choosing between whole life and term life insurance, one can still choose among the various kinds of whole life insurance.
Get a free life insurance quote and compare car insurance at http://www.nationsfinance.co.uk/.
These days, we can choose from a whole range of life insurance options. At the very basic level, we have a choice between term life insurance (which provides coverage for a specific number of years) and whole life insurance (which provides coverage for one's entire life). While both these have their own pros and cons, I find myself in favor of the whole life insurance option. This has a number of great advantages that is missing in the term life insurance option.
First of all, whole life insurance plans invest part of the amount that is paid as premium and help build cash value. After a period of time, it may so happen that the cash value itself goes into paying for the insurance. This is a major advantage that is not present in the term life option. Moreover, most whole life insurance plans require only a single medical examination. Thus, one is saved from having to periodically go through medical check ups, unless one decides to alter one's current plan. The tax savings that are incurred also work up to a significant amount in this case.
In addition to these advantages, one can also choose between three basic kinds of whole life insurance. The first of these is the traditional whole life insurance. This assures the insurer of a minimum rate of return on his/her cash value. The second type is the whole life insurance policy that is interest-sensitive. In this case, the policy offers a variable rate on one's cash value. The third type is one that involves a single premium. This is suitable for those who have sufficient money to straightaway buy an insurance policy. Thus, even after choosing between whole life and term life insurance, one can still choose among the various kinds of whole life insurance.
Get a free life insurance quote and compare car insurance at http://www.nationsfinance.co.uk/.
Whole Life Insurance - Protecting You 100%
Life insurance is a gift to those we care about the most. When we are no longer there to provide for our family, we can still make sure that our loved ones are cared for and can still live and thrive even when we can no longer be there to provide the money that we otherwise would provide for our families. Imagine how you would feel if your children could not go to university because the money was not available, or our family could not continue to live in their home because we are no longer there to provide the financial support they need and you can start to see why life insurance is so necessary.
There are broadly two major types of life insurance policy commonly available. Term life insurance is the cheapest form of insurance but has a limit, the term of the policy, for which it will provide protection. Whole of life insurance policies provide protection for our entire life irrespective of how long we may live and so they are vitally important for any financial protection plans that we set up.
Whole of life insurance policies combine life insurance with an investment fund that is attached to the policy. In the early years some of the premiums are used to pay for the life insurance cover while some is diverted and allocated to an investment fund. As a result the policy will start to build up a cash value. This investment fund can be used to help maintain premiums in later years or be used as an emergency or investment fund to provide monies as and when the policy holder needs to use them.
Typically, in the early years when the policy holder is younger, insurance costs are relatively low. As the policy holder ages, the insurance cover cost rises and premiums may be forced to increase. At some point the policy holder will be confronted with a stark choice of reducing the level of life insurance cover or paying the extra premium. If the extra premium cannot be paid, then the cover must be reduced unless the premium can be found from another source.
This is where the investment element comes into its own. The investment fund can be used to supplement premiums paid by the insured to ensure that even though the cost of insurance cover has increased, the cover can be maintained at no extra cost to the policy holder. In some instances, premiums can cease being paid by the insured policy holder as the cost can be covered from the investment fund alone.
Whole of life insurance contracts tend to be very useful when a policy holder must ensure that a lump sum is available upon death. With many of us falling into the tax bracket for paying inheritance tax, it makes sense to ensure that the tax bill can be paid directly from the proceeds of a whole of life insurance policy. This protects the estate from the ravages of the tax man who must be paid first before the estate can be released to those you really want to benefit - your family and loved ones.
Whole of life insurance contracts are very flexible policies providing a wide range of options. The ability to take premium holidays is available because there is an investment fund available to continue cover. The investment fund belongs to the policy holder so if there is a need for emergency funds or collateral to secure a loan or mortgage, extra avenues are open to the policy holder that are simply not provided by other non-investment based insurance contracts.
Looking for information on life insurance policies? If you are looking for advice on life insurance or whole life insurance policies, visit us now. Completely-Insurance.com is a goldmine for information on everything related to life insurance policies.
There are broadly two major types of life insurance policy commonly available. Term life insurance is the cheapest form of insurance but has a limit, the term of the policy, for which it will provide protection. Whole of life insurance policies provide protection for our entire life irrespective of how long we may live and so they are vitally important for any financial protection plans that we set up.
Whole of life insurance policies combine life insurance with an investment fund that is attached to the policy. In the early years some of the premiums are used to pay for the life insurance cover while some is diverted and allocated to an investment fund. As a result the policy will start to build up a cash value. This investment fund can be used to help maintain premiums in later years or be used as an emergency or investment fund to provide monies as and when the policy holder needs to use them.
Typically, in the early years when the policy holder is younger, insurance costs are relatively low. As the policy holder ages, the insurance cover cost rises and premiums may be forced to increase. At some point the policy holder will be confronted with a stark choice of reducing the level of life insurance cover or paying the extra premium. If the extra premium cannot be paid, then the cover must be reduced unless the premium can be found from another source.
This is where the investment element comes into its own. The investment fund can be used to supplement premiums paid by the insured to ensure that even though the cost of insurance cover has increased, the cover can be maintained at no extra cost to the policy holder. In some instances, premiums can cease being paid by the insured policy holder as the cost can be covered from the investment fund alone.
Whole of life insurance contracts tend to be very useful when a policy holder must ensure that a lump sum is available upon death. With many of us falling into the tax bracket for paying inheritance tax, it makes sense to ensure that the tax bill can be paid directly from the proceeds of a whole of life insurance policy. This protects the estate from the ravages of the tax man who must be paid first before the estate can be released to those you really want to benefit - your family and loved ones.
Whole of life insurance contracts are very flexible policies providing a wide range of options. The ability to take premium holidays is available because there is an investment fund available to continue cover. The investment fund belongs to the policy holder so if there is a need for emergency funds or collateral to secure a loan or mortgage, extra avenues are open to the policy holder that are simply not provided by other non-investment based insurance contracts.
Looking for information on life insurance policies? If you are looking for advice on life insurance or whole life insurance policies, visit us now. Completely-Insurance.com is a goldmine for information on everything related to life insurance policies.
Whole life insurance is a type of policy that provides you with insurance protection for the rest of your life, from the time you actually purchase the policy, until the day you either pass away, you stop making the premium payments or you reach the age of one hundred years. At that point, the insurance company will pay the owner of the policy 100% of the face value, which will also be the cash value. Therefore this type of policy insures you for your "whole life".
One of the interesting things about Whole life insurance is that it also builds what is called "cash value" over time. This cash value should not be confused with the "face value" of the policy. Let me explain the difference between the two.
Face Value = the amount of money that the insurance policy is supposed to provide in the event of the death of the insured person. In other words, if the amount of coverage you're buying is for $50,000, then the face value is $50,000. If the person was insured for $100,000, then the face value of the policy would be $100,000. Whatever the amount is that the policy is supposed to pay is the face value.
Cash Value = the actual amount that the policy is worth. Cash value will grow over time within a Whole Life policy, however, it will never reach the Face Value amount of the policy unless the insured individual reaches 100 years of age. At this point the policy has fully "matured".
The way that Cash Value works is that a portion of the money paid into a Whole life policy goes toward buying insurance, while the remainder goes into an interest bearing account. This money can be borrowed against later in life, if you choose to do so and can be used for practically any purpose, however, just like any other loan it must be repaid.
Whole life insurance isn't as popular as it once was. These days many people are buying Term life instead because it's less expensive and also because that way they're buying only "pure" insurance and can make the decision to invest their money elsewhere. You can always start out buying Term and upgrade to a Whole life insurance policy later in life, if you choose to. The decision is yours.
Joe Stewart Has Worked As A Life And Health Insurance Agent In The Pacific Northwest. Learning About Life Insurance Has Never Been Easier. Visit His Website Right Now At TheLifeInsuranceGuys.com or by clicking on Whole Life Insurance Explained
One of the interesting things about Whole life insurance is that it also builds what is called "cash value" over time. This cash value should not be confused with the "face value" of the policy. Let me explain the difference between the two.
Face Value = the amount of money that the insurance policy is supposed to provide in the event of the death of the insured person. In other words, if the amount of coverage you're buying is for $50,000, then the face value is $50,000. If the person was insured for $100,000, then the face value of the policy would be $100,000. Whatever the amount is that the policy is supposed to pay is the face value.
Cash Value = the actual amount that the policy is worth. Cash value will grow over time within a Whole Life policy, however, it will never reach the Face Value amount of the policy unless the insured individual reaches 100 years of age. At this point the policy has fully "matured".
The way that Cash Value works is that a portion of the money paid into a Whole life policy goes toward buying insurance, while the remainder goes into an interest bearing account. This money can be borrowed against later in life, if you choose to do so and can be used for practically any purpose, however, just like any other loan it must be repaid.
Whole life insurance isn't as popular as it once was. These days many people are buying Term life instead because it's less expensive and also because that way they're buying only "pure" insurance and can make the decision to invest their money elsewhere. You can always start out buying Term and upgrade to a Whole life insurance policy later in life, if you choose to. The decision is yours.
Joe Stewart Has Worked As A Life And Health Insurance Agent In The Pacific Northwest. Learning About Life Insurance Has Never Been Easier. Visit His Website Right Now At TheLifeInsuranceGuys.com or by clicking on Whole Life Insurance Explained
Wednesday, 19 December 2007
The Comparison of Term Life Insurance with Whole Life Insurance
Life insurance is a serious business that people should think twice about before signing, because it is not an investment tool, nor a way to save for college when purchased for children. However, for those who understand what insurance is intended for, term life insurance versus whole life insurance is a consideration coming into play.
A whole life insurance company generally may provide a term life insurance quote to help you decided on the insurance to be purchased. Money is the critical factor between both insurance coverage’s. As an example, the first annual premium of a whole life insurance policy is typically much higher than the annual premium for a term life insurance.
Life insurance can be purchase for many purposes, including providing financial security for your spouse, children's education after your death, pay death expenses, donate the proceeds to a charitable organization, and so on. The top reason people usually buy life insurance is as an income replacement after death for their dependents.
Term life insurance is a life-only coverage policy, in which the benefits are obtained after your die. Therefore, if you are alive, there is no money for your beneficiaries. Whole life insurance offer death benefits but also a savings account, called "cash value”, giving money back if you are alive after the signed term, cashing the policy before it occurs, or borrowing money against the policy.
Typically, if you require a life insurance quote before buy the policy, either the insurance company, financial institution or online services, provide it for free. Purchasing life insurance from a whole life insurance company may result in a more expensive plan than buying term insurance, because of the funds put into the cash value account.
In addition, the longer your policy term, the higher cash value to the name beneficiaries or the surviving insured due to the insurance money being paid and the cash value earned dividends, interests or both, for terms ranging from 1 to 30 years. However, any whole life insurance company or other institution can lock whole and term life insurance policies into the same monthly payment over the whole life of each policy.
When it comes to life insurance, many people consider whole life insurance as a type of retirement plan; however, they are more likely forced saving with high commissions and fees, including up front hidden commissions up to 100% of the first year's premium. On the other hand, premiums for term life insurance are cheaper for people in good health up to age 50 or so.
If you ask for a term life insurance quote, you will be able to notice how premiums become progressively more expensive after 50 years, although a whole life insurance company may apply higher premiums according to the insurer's age, and most companies do not sell life insurance to people over age 65.
Natalie Aranda writes about money, personal finance, family and business. Life insurance can be purchase for many purposes, including providing financial security for your spouse, children's education after your death, pay death expenses, donate the proceeds to a charitable organization, and so on. The top reason people usually buy life insurance is as an income replacement after death for their dependents.
A whole life insurance company generally may provide a term life insurance quote to help you decided on the insurance to be purchased. Money is the critical factor between both insurance coverage’s. As an example, the first annual premium of a whole life insurance policy is typically much higher than the annual premium for a term life insurance.
Life insurance can be purchase for many purposes, including providing financial security for your spouse, children's education after your death, pay death expenses, donate the proceeds to a charitable organization, and so on. The top reason people usually buy life insurance is as an income replacement after death for their dependents.
Term life insurance is a life-only coverage policy, in which the benefits are obtained after your die. Therefore, if you are alive, there is no money for your beneficiaries. Whole life insurance offer death benefits but also a savings account, called "cash value”, giving money back if you are alive after the signed term, cashing the policy before it occurs, or borrowing money against the policy.
Typically, if you require a life insurance quote before buy the policy, either the insurance company, financial institution or online services, provide it for free. Purchasing life insurance from a whole life insurance company may result in a more expensive plan than buying term insurance, because of the funds put into the cash value account.
In addition, the longer your policy term, the higher cash value to the name beneficiaries or the surviving insured due to the insurance money being paid and the cash value earned dividends, interests or both, for terms ranging from 1 to 30 years. However, any whole life insurance company or other institution can lock whole and term life insurance policies into the same monthly payment over the whole life of each policy.
When it comes to life insurance, many people consider whole life insurance as a type of retirement plan; however, they are more likely forced saving with high commissions and fees, including up front hidden commissions up to 100% of the first year's premium. On the other hand, premiums for term life insurance are cheaper for people in good health up to age 50 or so.
If you ask for a term life insurance quote, you will be able to notice how premiums become progressively more expensive after 50 years, although a whole life insurance company may apply higher premiums according to the insurer's age, and most companies do not sell life insurance to people over age 65.
Natalie Aranda writes about money, personal finance, family and business. Life insurance can be purchase for many purposes, including providing financial security for your spouse, children's education after your death, pay death expenses, donate the proceeds to a charitable organization, and so on. The top reason people usually buy life insurance is as an income replacement after death for their dependents.
Advantages of Whole Life Insurance – Is It Better Than Term Life Insurance?
Many people know that whole life insurance policies are usually more expensive than term life insurance policies, and for this reason most people choose to purchase the less expensive term life insurance policies. However, despite the higher premiums you may pay for whole life insurance policies, there are several advantages of whole life insurance.
1. Whole life insurance policies accumulate cash value. Unlike term life insurance policies, whole life insurance policies will accumulate a tax-deferred cash value. This means you do not have to pay taxes on the cash value that your whole life insurance policy accumulates. You can actually make money from your whole life insurance policy.
2. Your whole life insurance premium is usually fixed. Unlike term life insurance policies, whole life insurance policies usually offer a fixed annual premium. This means that the amount you pay will stay the same, regardless of whether or not your health begins to worsen. Most term life insurance companies will raise your premium if your health begins to deteriorate, costing you more money at a time you especially can not afford it.
3. Whole life insurance policies cover you for life. Term life insurance policies only cover you for a certain number of years, which is what some people need; however, with a whole life insurance policy, you will be covered for life. This means that you will not need to worry about renewing your life insurance policy.
Yes, whole life insurance policies tend to be more expensive, but the annual premiums can be fixed. And yes, whole life insurance policies cover you for life when you may think you only need coverage for a certain number of years, but that lifelong coverage offers worry-free protection. So, if you can afford the higher premiums, can take advantage of the tax-deferred accumulated cash value, and are interested in being insured for life, you should consider the advantages of whole life insurance policies.
Visit our website to purchase a term life insurance policy, to get home insurance Atlanta, or to get a health insurance lead.
1. Whole life insurance policies accumulate cash value. Unlike term life insurance policies, whole life insurance policies will accumulate a tax-deferred cash value. This means you do not have to pay taxes on the cash value that your whole life insurance policy accumulates. You can actually make money from your whole life insurance policy.
2. Your whole life insurance premium is usually fixed. Unlike term life insurance policies, whole life insurance policies usually offer a fixed annual premium. This means that the amount you pay will stay the same, regardless of whether or not your health begins to worsen. Most term life insurance companies will raise your premium if your health begins to deteriorate, costing you more money at a time you especially can not afford it.
3. Whole life insurance policies cover you for life. Term life insurance policies only cover you for a certain number of years, which is what some people need; however, with a whole life insurance policy, you will be covered for life. This means that you will not need to worry about renewing your life insurance policy.
Yes, whole life insurance policies tend to be more expensive, but the annual premiums can be fixed. And yes, whole life insurance policies cover you for life when you may think you only need coverage for a certain number of years, but that lifelong coverage offers worry-free protection. So, if you can afford the higher premiums, can take advantage of the tax-deferred accumulated cash value, and are interested in being insured for life, you should consider the advantages of whole life insurance policies.
Visit our website to purchase a term life insurance policy, to get home insurance Atlanta, or to get a health insurance lead.
Term Life Insurance No Physical - Really
Can you really get "term life insurance no physical" exam? Yes you can. The interesting thing is that most life insurance companies are jumping on the bandwagon. No physical life insurance has always been available to younger people. The older you get the smaller the amount available. What has happened is that one company made $150,000 of life insurance available online. It did very well initially. The actuaries from other companies went to work. They wanted to find out how far they could push the envelop. How much life insurance could they fairly safely offer online and at what ages.
Another carrier came up with policies which offered $250,000 coverage. Soon a few others joined the fray. It seems to be quite a profitable undertaking as the number of offers increase constantly. This, of course, is good for the consumer.
One guy came up with the idea that you can get $500,000 no medical life insurance online. This may be so, but I question whether this is so. I do because what he is doing is suggesting that a person can buy $250,000 from one company and the immediately go and get another $250,000 from another carrier. The problem about that is that when you buy a life insurance policy medical information about you is put into the Medical Information Bureau's Database. If you apply to one company and they find that you just purchased no medical exam term life insurance from another company they are likely to ask for a complete medical examination.
Incidentally, when you apply for your policy you give the carrier permission to get relevant information on you. You, in fact, permit them to get an Inspection Report.
Why do life insurance companies offer life insurance and ask for no medical exam? It is simply very profitable, if the applicant is in fairly good health. Just think, they eliminate the fee they would need to pay the doctor, paramedic or nurse to check out applicants. In addition they are protected by the "incontestability" clause which states that if the applicant fails to disclose information that would prevent them from issuing the policy they can withdraw it within a specific period of time, usually one or two years.
The no physical term life insurance policies issued are usually level term policies. 10 year term, 15 year term, 20 year term and 30 year term are quite popular. The premiums never increase and the face amounts of the policies never decrease. These are the term policies most selected when the applicant needs a medical as well. The ages at which these policies are issued are usually between age 18 and age 60. The ages and type may vary a bit depending on which life insurance company you are looking at.
So "term life insurance no physical" is a good idea for all parties concerned, as long as the applicant is honest.
Click here to see low cost no physical term life insurance offers:
http://www.lifeinsurancehub.net/lifeinsurance-1.html
For additional information on no medical term life insurance go here:
http://www.lifeinsurancehub.net/no-physical-term-life-insurance.html
For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.
Donald's website is: http://www.lifeinsurancehub.net
Another carrier came up with policies which offered $250,000 coverage. Soon a few others joined the fray. It seems to be quite a profitable undertaking as the number of offers increase constantly. This, of course, is good for the consumer.
One guy came up with the idea that you can get $500,000 no medical life insurance online. This may be so, but I question whether this is so. I do because what he is doing is suggesting that a person can buy $250,000 from one company and the immediately go and get another $250,000 from another carrier. The problem about that is that when you buy a life insurance policy medical information about you is put into the Medical Information Bureau's Database. If you apply to one company and they find that you just purchased no medical exam term life insurance from another company they are likely to ask for a complete medical examination.
Incidentally, when you apply for your policy you give the carrier permission to get relevant information on you. You, in fact, permit them to get an Inspection Report.
Why do life insurance companies offer life insurance and ask for no medical exam? It is simply very profitable, if the applicant is in fairly good health. Just think, they eliminate the fee they would need to pay the doctor, paramedic or nurse to check out applicants. In addition they are protected by the "incontestability" clause which states that if the applicant fails to disclose information that would prevent them from issuing the policy they can withdraw it within a specific period of time, usually one or two years.
The no physical term life insurance policies issued are usually level term policies. 10 year term, 15 year term, 20 year term and 30 year term are quite popular. The premiums never increase and the face amounts of the policies never decrease. These are the term policies most selected when the applicant needs a medical as well. The ages at which these policies are issued are usually between age 18 and age 60. The ages and type may vary a bit depending on which life insurance company you are looking at.
So "term life insurance no physical" is a good idea for all parties concerned, as long as the applicant is honest.
Click here to see low cost no physical term life insurance offers:
http://www.lifeinsurancehub.net/lifeinsurance-1.html
For additional information on no medical term life insurance go here:
http://www.lifeinsurancehub.net/no-physical-term-life-insurance.html
For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.
Donald's website is: http://www.lifeinsurancehub.net
Why Buy Whole Life Insurance for Kids Through Senior Citizens?
Most of the chat about life insurance, is for a term life insurance product. It is understandable because temporary coverage is usually more affordable for large amounts of death benefit. Why? Well, because of the very nature of term life insurance. It expires after a set amount of time, or a term. The company underwrites the policy and of course, only offers coverage to people that they believe will outlive whatever time period the insurance covers. So when you apply for a 20 year term policy, and the company issues your policy, they believe you will survive that period of time! Of course, that is good news, but is this really the security and benefit you are looking for? You may find yourself lacking any sort of coverage just when you need it the most!
If you find yourself without life insurance, just when you are middle aged or older, you can still find a policy. Senior life policies are intended to issued with very mild underwriting so most older people can qualify. Guaranteed life insurance policies can be issued to anybody, no matter what sort of health they are in. These are simply whole life insurance policies which are designed to provide permanent coverage so that older people know that they will not leave their kids or grandkids with high expenses and debts after they pass away. Even younger people may consider buying some whole life insurance so they can be assured of lifetime coverage. In fact, may parents and grandparents, buy policies for minors because children are so much cheaper to insure!
A guaranteed life insurance policy uses a waiting period, rather than underwriting, to issue coverage. They usually pay out the full face benefit after a period of time, two or three years. If the insured person passes away before that time, then the beneficiary will get back all premiums paid with a set amount of interest. You should only purchase this type of insurance if no "immediate benefit" life insurance is available, but in that case, it really is a win-win deal.
An immediate benefit senior life insurance policy will pay out the full benefit right away, even if the insured person dies three days after the policy is issued! The premiums are usually cheaper than guaranteed life insurance too. Many senior policies require very few health questions, and no medical exam. In fact, if a person is not in a nursing home and does not have a terminal disease, they can usually qualify for an instant benefit!
Here Are Some Reasons to Consider Senior Whole Life Insurance Policies:
Funeral Costs Average $8,000 in the US, and some cost more than $15,000. Other costs may involve travel, transporting a body, or settling debts. This is a large bill to leave to children.
Leave an estate to your heirs which is usually tax free. Life insurance is an affordable way to build an inheritance for children and grandchildren.
Whole life insurance actually builds up a cash value, and can be used as an asset while the insured person is still alive. Many whole life insurance policies actually can be borrowed against or cashed in.
Whole life insurance policy rates do not increase, unlike some term life insurance policies. If you purchase life insurance for a five year old child, or for a 65 year old adult, you have set a rate they can keep for life!
Cash from a life insurance policy can be used in any way that the beneficiary needs not use it, and it does not lock you into doing business with a specific funeral home.
If you do not have enough savings to insure that your final expenses can be taken care of, of if you would like to leave an estate for your children or grandchildren, consider the traditional approach: Whole Life Insurance!
Learn more about Whole Life Insurance for Seniors, and run a Fast Whole Life Insurance Quote with no obligation!
http://www.nomedicalexam.net/no-medical-exam-life.html
If you find yourself without life insurance, just when you are middle aged or older, you can still find a policy. Senior life policies are intended to issued with very mild underwriting so most older people can qualify. Guaranteed life insurance policies can be issued to anybody, no matter what sort of health they are in. These are simply whole life insurance policies which are designed to provide permanent coverage so that older people know that they will not leave their kids or grandkids with high expenses and debts after they pass away. Even younger people may consider buying some whole life insurance so they can be assured of lifetime coverage. In fact, may parents and grandparents, buy policies for minors because children are so much cheaper to insure!
A guaranteed life insurance policy uses a waiting period, rather than underwriting, to issue coverage. They usually pay out the full face benefit after a period of time, two or three years. If the insured person passes away before that time, then the beneficiary will get back all premiums paid with a set amount of interest. You should only purchase this type of insurance if no "immediate benefit" life insurance is available, but in that case, it really is a win-win deal.
An immediate benefit senior life insurance policy will pay out the full benefit right away, even if the insured person dies three days after the policy is issued! The premiums are usually cheaper than guaranteed life insurance too. Many senior policies require very few health questions, and no medical exam. In fact, if a person is not in a nursing home and does not have a terminal disease, they can usually qualify for an instant benefit!
Here Are Some Reasons to Consider Senior Whole Life Insurance Policies:
Funeral Costs Average $8,000 in the US, and some cost more than $15,000. Other costs may involve travel, transporting a body, or settling debts. This is a large bill to leave to children.
Leave an estate to your heirs which is usually tax free. Life insurance is an affordable way to build an inheritance for children and grandchildren.
Whole life insurance actually builds up a cash value, and can be used as an asset while the insured person is still alive. Many whole life insurance policies actually can be borrowed against or cashed in.
Whole life insurance policy rates do not increase, unlike some term life insurance policies. If you purchase life insurance for a five year old child, or for a 65 year old adult, you have set a rate they can keep for life!
Cash from a life insurance policy can be used in any way that the beneficiary needs not use it, and it does not lock you into doing business with a specific funeral home.
If you do not have enough savings to insure that your final expenses can be taken care of, of if you would like to leave an estate for your children or grandchildren, consider the traditional approach: Whole Life Insurance!
Learn more about Whole Life Insurance for Seniors, and run a Fast Whole Life Insurance Quote with no obligation!
http://www.nomedicalexam.net/no-medical-exam-life.html
Tuesday, 18 December 2007
Whole Life And Term - A Good Combination?
Combining whole life and term insurance! Have you ever given that some thought? The life insurance company can create a combination policy for you if that is your desire. This idea works out pretty well for some people.
Why would you combine whole life and term life insurance anyway? If you use your whole life policy as a base and add the term policy you would end up with more life insurance death benefit for your dollar than had you bought whole life alone.
On the other hand you may say that if you bought term alone you would get more death benefit. That is true but ask yourself this question, suppose you don't die within the term period would there be any money to get back. The answer is usually no, unless you buy a "return of premium term policy".
The way to set up these combination plans, whole life and term, requires some planning. If you qualify for a preferred risk policy with a top level company you may only need to buy about 25% or 30% whole life and the other 70% or 75% term insurance. This combination will afford you a fairly decent amount of total life insurance with some cash values to assist you in the hard times. The type of term policy you purchase would depend on your particular need, 5 or 10 year level term for short term needs and 15, 20, 25, or 30 year term policies for longer term needs.
The reason you would use a combination policy, whole life and term, is that the portion of your premium that pays for whole life accumulates cash values. If you are unable to pay your premiums at some point in the future you can draw upon the cash value and the dividends, if any. You can use those funds to keep the policy in force. Keep in mind, however, that it takes time to accumulate worthwhile cash values plus dividends.
It is important to also remember that, depending on the portion of premium assigned to each type of policy, your cash value may never equal your total outlay. You will have some cash for emergencies though, after a few years.
Actuaries have used similar ideas and created actual policies. If you examine the universal life policy you will find that it is a term policy combined with a saving plan. The variable universal life insurance policy is term insurance combined with an investment and the variable life policy is whole life insurance combined with an investment portfolio.
Ask yourself what type of insurance you need and why. Combining different types of life insurance policies may work for you.
For additional information on "whole life" go to:
http://www.lifeinsurancehub.net/whole-life-insurance.html
For more on "term" go to: http://www.lifeinsurancehub.net/term-life-insurance-3.html
For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.
Donald's website is: http://www.lifeinsurancehub.net
Why would you combine whole life and term life insurance anyway? If you use your whole life policy as a base and add the term policy you would end up with more life insurance death benefit for your dollar than had you bought whole life alone.
On the other hand you may say that if you bought term alone you would get more death benefit. That is true but ask yourself this question, suppose you don't die within the term period would there be any money to get back. The answer is usually no, unless you buy a "return of premium term policy".
The way to set up these combination plans, whole life and term, requires some planning. If you qualify for a preferred risk policy with a top level company you may only need to buy about 25% or 30% whole life and the other 70% or 75% term insurance. This combination will afford you a fairly decent amount of total life insurance with some cash values to assist you in the hard times. The type of term policy you purchase would depend on your particular need, 5 or 10 year level term for short term needs and 15, 20, 25, or 30 year term policies for longer term needs.
The reason you would use a combination policy, whole life and term, is that the portion of your premium that pays for whole life accumulates cash values. If you are unable to pay your premiums at some point in the future you can draw upon the cash value and the dividends, if any. You can use those funds to keep the policy in force. Keep in mind, however, that it takes time to accumulate worthwhile cash values plus dividends.
It is important to also remember that, depending on the portion of premium assigned to each type of policy, your cash value may never equal your total outlay. You will have some cash for emergencies though, after a few years.
Actuaries have used similar ideas and created actual policies. If you examine the universal life policy you will find that it is a term policy combined with a saving plan. The variable universal life insurance policy is term insurance combined with an investment and the variable life policy is whole life insurance combined with an investment portfolio.
Ask yourself what type of insurance you need and why. Combining different types of life insurance policies may work for you.
For additional information on "whole life" go to:
http://www.lifeinsurancehub.net/whole-life-insurance.html
For more on "term" go to: http://www.lifeinsurancehub.net/term-life-insurance-3.html
For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.
Donald's website is: http://www.lifeinsurancehub.net
Term vs. Whole Life Insurance – Which Do You Need for Cheaper Insurance?
You have probably heard of both term life insurance and whole life insurance. Some people are buying term, some people are buying life, and you are just trying to figure out the difference between the two so you will know which life insurance will better fit your needs.
Let’s start with the most commonly purchased and often considered the more practical of the two, term life insurance. Although term life insurance expires without maturity and its premiums increase at the time of renewal depending on your age, it is still considered a great option for people with temporary or short time insurance needs, people who are just beginning in the work force and do not have much money to spend on life insurance, and/or people who foresee their insurance needs changing in the future. It is generally less expensive than whole life insurance and you can choose the exact time period you want to be covered.
Whole life insurance, on the other hand, insures you for your entire life. A whole life insurance policy usually has fixed premiums and can be cashed in or turned into cash advances. Sometimes whole life insurance offers a paid-up insurance option, which means you can terminate your policy at any time yet still remain covered at an adjusted coverage level. Whole life insurance is the best choice if you are experiencing long term needs and have the financial ability to cover them.
Both term life and whole life insurance are nontaxable.
Take into consideration your health needs and financial status when choosing your insurance policy, and choose the life insurance that best fits your needs at the time of purchase. Since most term life insurance policies can usually be converted into whole life insurance policies at a later date, you may want to consider starting with a term life insurance policy and adjusting it according to your needs and financial status as they change.
View our Recommended Source for Insurance Quotes it is a simple site that provides free quotes for all types of insurance. Life Insurance Quotes for both whole and term. Home Owners Insurance
Let’s start with the most commonly purchased and often considered the more practical of the two, term life insurance. Although term life insurance expires without maturity and its premiums increase at the time of renewal depending on your age, it is still considered a great option for people with temporary or short time insurance needs, people who are just beginning in the work force and do not have much money to spend on life insurance, and/or people who foresee their insurance needs changing in the future. It is generally less expensive than whole life insurance and you can choose the exact time period you want to be covered.
Whole life insurance, on the other hand, insures you for your entire life. A whole life insurance policy usually has fixed premiums and can be cashed in or turned into cash advances. Sometimes whole life insurance offers a paid-up insurance option, which means you can terminate your policy at any time yet still remain covered at an adjusted coverage level. Whole life insurance is the best choice if you are experiencing long term needs and have the financial ability to cover them.
Both term life and whole life insurance are nontaxable.
Take into consideration your health needs and financial status when choosing your insurance policy, and choose the life insurance that best fits your needs at the time of purchase. Since most term life insurance policies can usually be converted into whole life insurance policies at a later date, you may want to consider starting with a term life insurance policy and adjusting it according to your needs and financial status as they change.
View our Recommended Source for Insurance Quotes it is a simple site that provides free quotes for all types of insurance. Life Insurance Quotes for both whole and term. Home Owners Insurance
Life Insurance Policies: Term vs Permanent
When it comes to purchasing life insurance, deciding which kind of policy to buy can be a challenge. But by learning about the characteristics of available life insurance policies and working together with an experienced life insurance agent, you’ll be able to choose the right policy to protect your loved ones.
Term Life Insurance
As the name suggests, term life insurance provides coverage for a certain period of time, as specified in your policy. This means that a death benefit will only be paid out if you die within your policy’s term. Because of this central characteristic, term life insurance policies tend to be much cheaper than permanent life insurance policies—making it a very appealing option to young adults or families who can’t spend a lot on life insurance.
Though term life insurance comes in two forms—level term (pays the same death benefit no matter when you die during the term) and decreasing term (the death benefit decreases throughout the duration of the policy)—level term policies are by far the most popular.
According to the Insurance Information Institute (I.I.I.) common types of level term policies are:
Annual (least popular)
5 year
10 year
15 year
20 year (most popular)
25 year
30 year
Many term life insurance policies are renewable, which means that you may be able to reinstate your policy after the term ends, although reinstatement may be contingent on passing a medical exam and will likely involve an increased premium. Additionally, the I.I.I. reports that most insurers will not renew a policy ending after 80 years of age.
Premiums for term life insurance are typically based on your age and health status at the time the policy is written. Some insurers guarantee your premiums to stay the same throughout the length of the term, but others may not make that guarantee (and increase your premiums throughout the term)—so be sure you’re aware of premium provisions before signing a policy.
Life insurance tip: Buying life insurance when you’re young and healthy will help you secure low premiums. Not a spring chicken? Take care of your health—stop smoking and exercise regularly to get the lowest insurance premium.
Permanent Life Insurance
Unlike term life insurance, permanent life insurance pays a death benefit whether you die they day after you sign the policy or 50 years later. Permanent life insurance policies are also appealing because of their ability to grow tax-deferred over a certain length of time—which can result in a large chunk of change. This cash value can be used in a variety of ways, providing additional benefits to policyholders and their families.
Because of these characteristics, permanent life insurance policies tend to be more expensive than term policies, which may not be conducive for young adults or families with income limitations.
Life insurance tip: Some term life policies can be converted to permanent life insurance policies, so if you’re interested in a permanent policy but can’t afford the premiums, ask your agent about term policies with this feature.
Permanent life insurance policyholders also have a wide array of policy options to choose from. The four common types of permanent life insurance are whole, universal, variable and variable-universal.
Whole life policies are the most common form of permanent life insurance and offer both a death benefit and the additional benefit of a savings account. If you buy a whole life policy, you agree to pay a certain amount for a predetermined death benefit. And, unlike a term life policy, whole life policies have the potential to earn annual dividends—which will earn interest if you let them accrue.
Universal life policies offer more flexibility, allowing you to vary how much you pay and when you make premium payments (with some limitations, of course). You may also be able to obtain a larger death benefit, provided you pass a medical exam, and like whole life policies, your universal policy may earn cash value over time.
Variable life policies incorporate a death benefit with a savings account that you can invest in stocks, bonds or mutual funds. While this may increase the value of your policy, it’s important to remember that if your investments don’t perform well, your death benefit will decrease. To avoid this, the I.I.I. says you can ask about variable policies that guarantee that the death benefit will not fall below a certain amount.
Variable-universal policies combine the features of variable and universal life policies, meaning that you have the investment options of a variable policy and the flexibility of premium payments of a universal policy.
Which Policy is Right for You?
Now that you have some idea of what policy options appeal to you, take the time to speak with a licensed life insurance professional that can answer questions and help you come closer to your life insurance decision. Because when you have all the facts, it makes finding affordable life insurance that much easier!
About InsureMe
Megan L. Mahan is a copywriter and insurance information expert with InsureMe in Englewood, Colorado. InsureMe links agents nationwide with consumers shopping for insurance. Specializing in auto, home, health, long-term care and life insurance quotes, the InsureMe network provides thousands of agents with insurance leads every year. For more information, visit InsureMe.com.
Term Life Insurance
As the name suggests, term life insurance provides coverage for a certain period of time, as specified in your policy. This means that a death benefit will only be paid out if you die within your policy’s term. Because of this central characteristic, term life insurance policies tend to be much cheaper than permanent life insurance policies—making it a very appealing option to young adults or families who can’t spend a lot on life insurance.
Though term life insurance comes in two forms—level term (pays the same death benefit no matter when you die during the term) and decreasing term (the death benefit decreases throughout the duration of the policy)—level term policies are by far the most popular.
According to the Insurance Information Institute (I.I.I.) common types of level term policies are:
Annual (least popular)
5 year
10 year
15 year
20 year (most popular)
25 year
30 year
Many term life insurance policies are renewable, which means that you may be able to reinstate your policy after the term ends, although reinstatement may be contingent on passing a medical exam and will likely involve an increased premium. Additionally, the I.I.I. reports that most insurers will not renew a policy ending after 80 years of age.
Premiums for term life insurance are typically based on your age and health status at the time the policy is written. Some insurers guarantee your premiums to stay the same throughout the length of the term, but others may not make that guarantee (and increase your premiums throughout the term)—so be sure you’re aware of premium provisions before signing a policy.
Life insurance tip: Buying life insurance when you’re young and healthy will help you secure low premiums. Not a spring chicken? Take care of your health—stop smoking and exercise regularly to get the lowest insurance premium.
Permanent Life Insurance
Unlike term life insurance, permanent life insurance pays a death benefit whether you die they day after you sign the policy or 50 years later. Permanent life insurance policies are also appealing because of their ability to grow tax-deferred over a certain length of time—which can result in a large chunk of change. This cash value can be used in a variety of ways, providing additional benefits to policyholders and their families.
Because of these characteristics, permanent life insurance policies tend to be more expensive than term policies, which may not be conducive for young adults or families with income limitations.
Life insurance tip: Some term life policies can be converted to permanent life insurance policies, so if you’re interested in a permanent policy but can’t afford the premiums, ask your agent about term policies with this feature.
Permanent life insurance policyholders also have a wide array of policy options to choose from. The four common types of permanent life insurance are whole, universal, variable and variable-universal.
Whole life policies are the most common form of permanent life insurance and offer both a death benefit and the additional benefit of a savings account. If you buy a whole life policy, you agree to pay a certain amount for a predetermined death benefit. And, unlike a term life policy, whole life policies have the potential to earn annual dividends—which will earn interest if you let them accrue.
Universal life policies offer more flexibility, allowing you to vary how much you pay and when you make premium payments (with some limitations, of course). You may also be able to obtain a larger death benefit, provided you pass a medical exam, and like whole life policies, your universal policy may earn cash value over time.
Variable life policies incorporate a death benefit with a savings account that you can invest in stocks, bonds or mutual funds. While this may increase the value of your policy, it’s important to remember that if your investments don’t perform well, your death benefit will decrease. To avoid this, the I.I.I. says you can ask about variable policies that guarantee that the death benefit will not fall below a certain amount.
Variable-universal policies combine the features of variable and universal life policies, meaning that you have the investment options of a variable policy and the flexibility of premium payments of a universal policy.
Which Policy is Right for You?
Now that you have some idea of what policy options appeal to you, take the time to speak with a licensed life insurance professional that can answer questions and help you come closer to your life insurance decision. Because when you have all the facts, it makes finding affordable life insurance that much easier!
About InsureMe
Megan L. Mahan is a copywriter and insurance information expert with InsureMe in Englewood, Colorado. InsureMe links agents nationwide with consumers shopping for insurance. Specializing in auto, home, health, long-term care and life insurance quotes, the InsureMe network provides thousands of agents with insurance leads every year. For more information, visit InsureMe.com.
Term vs Whole Life vs Universal Life Insurance - Compare Life Insurance For Your Best Buy!
Term Life Insurance
Just as the name, term life insurance says, this type of life insurance is purchased to last a set amount of time, or a term. Terms may be from one year to 30 years. The amount of time that the life insurance is purchased for should represent the time that an insured person feels they need that coverage. Sometimes people use the length of their home mortgage and sometimes they think about how many years their children will depend upon them for support.
Since the life insurance company only takes on liability for a set amount of time, they will offer larger face amounts for less money. After all, the life insurance company will require an application, and possibly back that up with other research on a potential customer's general health. They will take an application, and only offer life insurance to people that they believe will survive the term of the policy. Of course, longer terms will usually cost more than shorter terms. But the fact that a term exists, means that this sort of life insurance will cost less than any permanent insurance for the same face value of death benefits.
Whole Life Insurance
Whole life insurance is the traditional form of life insurance. It does not expire at a set term, but as long as it is paid up, will last for an insured person's whole life. It can also build up a cash value that can be taken out or borrowed against. In this way, whole life is not just insurance, but can also become an asset.
Whole life insurance is, of course, more expensive for large amounts than term life for the same individual and death benefit. However, in small amounts, it can be an affordable way to purchase life insurance that will settle final expenses for an older person, or a person with health issues. Many people purchase final expense or burial policies for senior citizens, and these are simply smaller face value whole life insurance policies.
Of course, children are fairly cheap to insurance. The purchase of a whole life policy on a child would give them the gift of lifetime protection. Sometimes these policies can be paid off over a set amount of time, and the child will have a valuable asset and protection when they get older!
Universal Life Insurance
Universal life insurance is a new product, and is more complicated. It is permanent life insurance, but can also have a term insurance rider. For instance, a man with three kids may want extra protection while his children are young. Then, when he anticipates that his children will not depend upon him, he may drop the extra term life, and just have the permanent life insurance.
The central thing about universal life insurance is that it is also used as an investment. Policies may be tied to market rates, so any money put into the policy, that is not needed to pay for the current life insurance bill could grow as an investment. This can increase the value of the policy's cash amount, and even increase the face value or death benefit of the life insurance.
Term Life vs Whole Life Vs Universal Life
So which is better? Well, that depends upon your own needs, expectations, the type of insurance you can qualify for, and your budget. You need to decide if you only need life insurance for a set amount of time, or if you would like protection for your whole life. Do you want to use life insurance as an investment? Do you want some combination?
Compare Term vs Whole Life vs Universal Life Insurance with our free online life insurance quote form!
Just as the name, term life insurance says, this type of life insurance is purchased to last a set amount of time, or a term. Terms may be from one year to 30 years. The amount of time that the life insurance is purchased for should represent the time that an insured person feels they need that coverage. Sometimes people use the length of their home mortgage and sometimes they think about how many years their children will depend upon them for support.
Since the life insurance company only takes on liability for a set amount of time, they will offer larger face amounts for less money. After all, the life insurance company will require an application, and possibly back that up with other research on a potential customer's general health. They will take an application, and only offer life insurance to people that they believe will survive the term of the policy. Of course, longer terms will usually cost more than shorter terms. But the fact that a term exists, means that this sort of life insurance will cost less than any permanent insurance for the same face value of death benefits.
Whole Life Insurance
Whole life insurance is the traditional form of life insurance. It does not expire at a set term, but as long as it is paid up, will last for an insured person's whole life. It can also build up a cash value that can be taken out or borrowed against. In this way, whole life is not just insurance, but can also become an asset.
Whole life insurance is, of course, more expensive for large amounts than term life for the same individual and death benefit. However, in small amounts, it can be an affordable way to purchase life insurance that will settle final expenses for an older person, or a person with health issues. Many people purchase final expense or burial policies for senior citizens, and these are simply smaller face value whole life insurance policies.
Of course, children are fairly cheap to insurance. The purchase of a whole life policy on a child would give them the gift of lifetime protection. Sometimes these policies can be paid off over a set amount of time, and the child will have a valuable asset and protection when they get older!
Universal Life Insurance
Universal life insurance is a new product, and is more complicated. It is permanent life insurance, but can also have a term insurance rider. For instance, a man with three kids may want extra protection while his children are young. Then, when he anticipates that his children will not depend upon him, he may drop the extra term life, and just have the permanent life insurance.
The central thing about universal life insurance is that it is also used as an investment. Policies may be tied to market rates, so any money put into the policy, that is not needed to pay for the current life insurance bill could grow as an investment. This can increase the value of the policy's cash amount, and even increase the face value or death benefit of the life insurance.
Term Life vs Whole Life Vs Universal Life
So which is better? Well, that depends upon your own needs, expectations, the type of insurance you can qualify for, and your budget. You need to decide if you only need life insurance for a set amount of time, or if you would like protection for your whole life. Do you want to use life insurance as an investment? Do you want some combination?
Compare Term vs Whole Life vs Universal Life Insurance with our free online life insurance quote form!
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