Posts Tagged ‘term life insurance’

Buying Life Insurance on a Budget: what you Need to Know

Wednesday, March 10th, 2010

You know you need life insurance, but your budget is near its breaking point. What do you do?

The answer is simple: you owe it your loved ones to find the money in your budget to purchase life insurance. However, given the highly competitive life insurance business, you can be sure to find affordable and comprehensive life insurance.

Whole Life Insurance vs. Term Life Insurance

The most affordable route to take when purchasing life insurance on a budget is term life insurance. Many life insurance agents will push whole life insurance policies because of the big commissions they receive. Make no doubt about it: whole life insurance policies do have their place, but if finances limit you, a term life insurance policy is certainly the next best thing.

Many individuals choose term life insurance policies because they provide excellent coverage for a certain time period; this may be during the time they have a mortgage, or when their children are young. Whatever your reason for choosing a term life insurance policy, make sure it covers your debts so that you can best take care of your family financially in the event of your death.

Longer Term Policies and Better Rates

Because of the competitive nature of the life insurance business, it is quite simple to find great policies, with high death benefits, for as long as 30 years. And, when considering the price difference between whole life insurance policies and term life insurance policies, the choice is quite simple for most individuals: term policies win the race.

For individuals on a budget, consider term and take out the largest term life insurance policy that you can comfortably afford. Your term life insurance policy should cover your mortgage, your debts, your funeral and burial costs, and any other monies that you want to leave to help provide financial support for your family.

Do your research and compare a number of life insurance policies through different life insurance carriers. However, don’t automatically choose the cheapest policy; instead, research companies and decide which one has the best reputation, history and financial standing so your policy is protected.

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How to Choose the Best Term Life Insurance

Tuesday, December 15th, 2009

Term life insurance is often the popular choice for individuals who are looking for quality life insurance with low premiums. Most term life insurance policies are relatively straightforward, as you choose the term (i.e. length of time) you want to carry the policy and the amount of your term life insurance policy.

Term life insurance is ideal for individuals who want to be covered for a specific amount of time. For example, a young parent may choose to take out a term life insurance policy that will protect his/her family until the children are of legal age. Another individual may choose to take out a term policy until his/her home is paid off.

Although term life insurance is pretty straightforward and easy to understand, there are a few things you should keep in mind when shopping for a term life insurance policy:

  1. Guaranteed renewal term life insurance policy - Look for a term life insurance policy that gives you the option of renewing it once the original term has ended. In particular, make sure you can renew the policy regardless of your health; after all, we don’t know what the future holds, so it is best to keep your options open regarding your term life insurance. Also, make it a point to think through your decision regarding your loan’s term. In other words, don’t get caught with a term policy that simply won’t protect you for a long enough length of time.

  2. Fixed premium term life insurance policy - It is generally best to only take out a term life insurance policy that offers a fixed premium for the life of the policy. Many term life insurance policies will offer super-low premiums for the first, few months and then raise them afterwards. However, it is probably best to choose a policy that offers the same premium for the life of the policy so that you can better plan your finances.

  3. Shop around and save - Not all term life insurance policies are created equal; and that goes for price, too. Make it a point to shop around when searching for a term life insurance policy. In addition to comparing prices, compare companies, as well. In other words, choose a company with a strong financial history so that you can be sure your term life insurance policy will be valid during the duration of the policy.

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Refusing to Retire: How to Find the Best Life Insurance Plan if You’re an Older Employee

Monday, October 12th, 2009

Many retirees often opt to purchase, upgrade, or alter their life insurance policy as they continually age, as making necessary adjustments allows individuals to ensure that their policy meets their desired needs and interests.  Yet, as many older workers opt to continue employment after reaching their intended retirement age, experts have identified key life insurance tips for those who opt to remain in the workforce for a longer duration of time.

While you may have postponed your purchase of a life insurance policy in your younger years, investing in a plan as you near and reach retirement is certainly recommended.  As many life insurance providers may turn down potential clients who are in poor health and / or are of an older age, ensuring that you have optimal coverage can help to protect your loved ones from unanticipated costs in the future.

Benefits for Older Employees

Fortunately, if you’ve decided to continue working beyond your retirement age and you have not yet celebrated your 85th birthday, then your employer is legally required to offer you life insurance protection.  Although your particular life insurance policy may not be as ideal and comprehensive as your younger co-workers, you will still be able to receive coverage at a generally affordable rate.

Finding the Best Policy

If you have reached the retirement age and are unhappy with the life insurance coverage offered by your employer, then you can independently seek out your own coverage from another provider.  To begin, find the best policy for your own lifestyle and needs by evaluating the options of term vs. whole life policies.

Generally, individuals over the age of around 55 should avoid investing in term policies, as term coverage is generally more ideal for a younger individual (such as a newlywed or a new, first time parent).  Since term life insurance is only available for a limited and set period of time, the end-date of coverage means that the policy holder is no longer able to receive any benefits-even though the policy has been paid!  Typically lasting around 10 to 20 years, term policies do not accumulate in value; additionally, older policy applicants often have to undergo a health assessment and / or medical exam before they are approved for coverage.

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Which Type of Life Insurance Meets Your Unique Needs?

Wednesday, July 15th, 2009

Whether you are seeking to manage your long-term finances, or if you want to ensure that your new family will be cared for in the unfortunate case of an unforeseen incident, life insurance can help individuals experience reduced stress and worry. As life insurance is an investment that provides for one’s family members in cases of physical injury, death, or other challenges, people who invest in life insurance can customize their plans to meet their own unique needs.

Which Type of Life Insurance is Best?

Depending on your own personal needs and desires, you’ll need to customize your own life insurance plan by following specific steps and asking detailed questions. Ultimately, you want to ensure that your life insurance policy will help to alleviate any financial stress for your loved ones if you are no longer able to provide an income / support. To begin evaluating your options, start by assessing your specific needs.

Family - Both married and single individuals (also with or without children) typically choose to invest in some form of life insurance policy. In the case of one’s death, any life insurance policy allotments will be delivered to the established beneficiaries without any additional taxes; therefore, one should consider whether or not they would like to choose specific individuals who would benefit from such financial provisions.

Financial Goals - Also, regardless of one’s size of family, a life insurance policy can be adjusted to help one’s partner pay off debts, continue ownership of the family’s home, pay for college tuition, and manage additional life costs. For individuals who are single and / or do not have any children, a life insurance policy can be customized to ensure that a specific charity, school, church, or other organization is the beneficiary of the financial endowment.

Children - While individuals who do not have children can certainly benefit from a life insurance policy, men or women who are single parents should undoubtedly sign up for a life insurance policy. As a single parent, planning for unforeseen events can help ensure that one’s child / children are cared for if anything is to harm the parent.

Term and Permanent Life Insurance Plans

Once you have clarified your needs and desires, meet with a life insurance representative to choose the term of your plan. You will be able to choose from either a term or a permanent policy, depending more on your own preferences. A term policy provides temporary benefits that can range from a few years to even 50 years. A permanent policy, or whole life policy, on the other hand, provides life-long coverage for one’s peace of mind and assurance.

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Is It Time To Cancel Your Life Insurance?

Monday, June 1st, 2009

Many families feel the need to cancel their life insurance when the economy slumps as a money-saving measure.  The monthly premium can put some money back into their pockets to help pay for other things, but is canceling a life insurance policy really the smart thing to do? Let us take a closer look to help you make this assessment.

The simple answer is no.  In fact, during a recession, and at times when companies are laying off workers by the droves, it is probably best to view life insurance as a higher priority.  The school of thought is this: if you are having trouble paying for life insurance during an economic slump or recession, just think of how tough it will be for your survivors if you are not there anymore.

Buy Individual Life

Many workers through larger companies are provided a group life insurance benefit.  This is usually a term life insurance and it is a nice benefit to have - as long as you continue working for the company.   But what if you are laid off?  Your group life insurance will be canceled as well.

Instead of depending upon group life insurance, it may be best for you and your family to purchase your own individual life insurance.  You may keep the group life as a supplemental policy as long as you continue to work, and if you ever become laid off you can always add more benefit to your individual policy.

Switch to Term

There are many types of individual life insurance products.  Some have a savings feature that requires an additional premium each month.  If you currently are paying more than you feel you can afford for a Universal or Whole life insurance policy, consider switching it to a term policy.

Additionally, most companies will allow you to make the switch and even transfer the savings you have built up over as payment of the term premium.  Term life can be extremely affordable and help put more money into the budget for other important expenses.

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Why Term Life Insurance is Worthy of Your Consideration

Tuesday, May 26th, 2009

Many people view life insurance as a double billing of both a savings account and financial security for loved ones.  There are many varieties of whole life insurance and universal life insurance that provide a  savings element when you pay premiums, but what if you just want to protect your family from financial disaster in the case of your death?

The Benefit of Vested Savings

In this particular instance, you may wish to consider other options, such as life insurance policies with vested savings. Life insurance policies with vested savings are a safe and conservative way to save wealth, but the returns are extremely diminished.  If you are not looking to pack away some of your wealth, you may be best suited for a term life insurance policy.

Term life insurance is a simple contract between an insurance company and a policy owner, who is usually the insured.  Based on the health and age of the insured, the insurance company wages that they can predict the chances of a premature death and in doing so, they will pay a predetermined death benefit if the insured does pass away during the term of coverage.

The death benefit can be any amount, with as little as $5,000 to pay for funeral costs, and as much as millions of dollars.  Although these options are abundant, affordability is another element of consideration as the amount of potential benefit affects the price of the premium dramatically.  But even a simple term life insurance policy for $50,000 is very affordable for the average working head of household.

Conclusion

Most families don’t want to think about tragedy, but every year there are many families who are left destitute when the main bread-winner suddenly dies and they are left without income or a considerable loss.  Term life insurance can offer peace of mind, however, and at a cheap price.  So, if you are the primary provider for your family, consider putting away several dollars each month toward a term life insurance policy that provides your family with financial means to survive after a potential untimely death.

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