Posts Tagged ‘whole 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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Your Common Life Insurance Questions Answered

Monday, January 11th, 2010

Life insurance is a frequently misunderstood type of insurance. Although most of us realize that we need life insurance, many of us don’t know where to turn to get the best coverage at the best price.

Don’t let the unknown scare you; protecting your loved ones with comprehensive life insurance is one of the single best things you can do for them.

The following are some of the most commonly asked questions about life insurance:

Q:  Can someone else take a life insurance policy on me?

A:  Only those individuals with an “insurable interest” in you can take out a policy on your life. For example, a parent or spouse may take out a life insurance policy on you. There are also cases in which an employer or a business partner may also take out a life insurance policy on you.

Q: What does a standard life insurance application entail?

A: To apply for a life insurance product you will likely be asked to fill out an application, which often includes your age, your health history and other personal information. Based upon this information, the insurance company may or may not take insure you. Many insurance companies also require that applicants undergo complete health examinations before being eligible to receive life insurance benefits.

Q: What type of life insurance product is best for me?

A: There are many types of life insurance products available, including term and whole life insurance, as well as hybrid policies. The type of life insurance product you choose will largely depend on the following factors: your age; your health; your family situation; and your financial situation. Term policies, for example, are often more affordable than whole life policies, while whole life policies are intact for your lifetime, not just a certain length of time.

Q: Where can I shop for life insurance?

A: Shopping for life insurance has never been easier, thanks to a myriad of life insurance companies that offer online life insurance quotes and life insurance information. Shopping online for life insurance also allows you to compare policies between companies and even between the same insurer.

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How to Distinguish Between Life Insurance Policies

Friday, December 18th, 2009

We all know the importance of life insurance, but after that it often gets a bit muddled. The first step in taking out a comprehensive life insurance policy involves educating yourself on the different types of life insurance that is available so that you know you are making the best decision possible.

When searching for quality life insurance, you will likely encounter the following types of insurance:

Term Insurance

Term life insurance is life insurance that is available for a certain period of time. The time period for term insurance can range anywhere from 5 years to 30 years, depending on the length of time you desire. However, one the term period has expired, you are left without insurance. Often times, term insurance is ideal for individuals that need life insurance for a certain time frame in their lives. For example, you may choose to take out a term life insurance policy that will last until your children are adults. Term life insurance is often chosen by individuals because it is much less expensive than whole life insurance policies.

Permanent Life Insurance

Permanent life insurance is the most frequently purchased life insurance policy, as the policy lasts until the individual dies, provided he or she continues to pay on the policy. Permanent life insurance policies also have a cash surrender value, which thereby allows the individual to build up cash value as they pay on the policy; the cash value in the permanent life insurance policy grows tax-deferred. In addition, permanent life insurance provides a fixed premium and a fixed death benefit.

The cash value of a permanent life insurance policy may allow you to borrow from the insurance company and use the policy’s cash value as collateral. You may use the cash value to pay premiums, buy more coverage and even exchange the policy into an annuity product. You may also cancel the policy and receive a lump sum of money.

There are two, different types of permanent life insurance:

  • Whole Life Insurance - Whole life insurance allows an individual to pay a fixed premium for a fixed death benefit over the life of the policy.
  • Variable Life Insurance - Variable life insurance involves allowing the insurance company to invest your premiums; your cash value and death benefit depend on the performance of these investments.

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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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