Life Insurance Journal

A Life Annuities Podcast

2010-02-22T14:15:00.003-05:00

I recently made a podcast with Monty Loree who runs the Canadian Money Advisor site at http://www.canadian-money-advisor.ca/podcast-summary.html.

A lot of the conversation was about life annuities and their growing importance to the investing public.And the question arose;why life annuities?

A growing number of people are fed up with the stock market and its volatile behaviour which makes everyone anxious.

It appears about 99% of mutual and segregated fundholders were left in their sinking funds as the Dow fell from 14,000 approx to 6,500 approx in March 2009.All of these clients could have been moved into money market funds or daily savings accounts where they would have made little or no money or even lost a very little,but at least their capital would have been preserved.But no,they were left to rot and now face a market which has struggled back about 50% or so.

So do they stay in and hope to recover more? Or do they bail and head for security in a life annuity? With a life annuity the income is known,it last a lifetime (literally ) and you don,t care if the market falls into a black hole as it probably will.And that is why the public are turning to life annuities.

Your Term Life Insurance Exam

2009-11-19T13:55:00.001-05:00

When you purchase a life insurance policy, you may be required to take a medical exam. Life insurance companies need these medical exams to determine the premium to be charged. If the medical exam results indicate that you have a greater risk of dying at an early age the life insurance company will charge higher premiums. However, if you are in good health you will pay the standard life insurance premium.

Life Insurance Factors
Life insurance companies use two factors to judge how much to charge. The mortality rates of people are statistics found in the longevity charts of the life insurance companies and the second factor is your medical exam and history.
Generally life insurance medical exams are carried out by para-medicals or doctors who are hired by the life insurance company. They will come to your home or office unless the life insurance company requires additional tests. The questions on a life insurance application are divided into two parts. Part 1is usually completed by your agent in your presence or online by you. Part 2 is the paramedical. Once you submit your application for life insurance , the insurance paramedical services needs all your information and the amount of life insurance that you are applying for.

Life Insurance Requirements
As part of your life insurance medical exam you will be asked about:
- Your personal medical history
- Your family’s medical history
- Contact details for your primary doctor
- Information on your life style habits; if you smoke, drink, or use drugs
- What and how much life insurance you are interested in purchasing

What Are The Life Insurance Procedures?

The following are the procedures that you can expect during your life insurance medical exam:
- weight and height measurement
- measurement of blood pressure and pulse
- blood work (to check cholesterol, glucose, protein and HIV)
- Urine Analysis (to check on protein, glucose, creatinine and cocaine)

Keep in mind life insurance exams vary from one life insurance company to another life insurance company. If you are older and want a large policy, you might be required to undergo ECG’s or other tests.

What is your life insurance company looking for?

Basically, the life insurance company needs to know what risk you pose to the company. When the medical practitioner collects samples of blood and urine, they will test liver for kidney disorders, diabetes and other immune disorders. Urine samples will also be analyzed for medications, cocaine and other drugs. If you plan to buy a large amount of life insurance, you might need a blood profile as well.

The results of your life insurance medical exam are sent directly to you the life insurer’s office. If there are problems with your health, more medical tests or information may be requested. If a medical problem is present you may be offered a policy with a higher premium. Whatever the premium is, you will normally find the cheapest policy is for term life insurance.

Term Life Insurance And Whole Life Insurance

2009-11-16T15:28:00.000-05:00

Needs evolve and your life insurance should change with them. But deciding what life insurance policy is best for you is a more difficult choice. There are benefits in your term life policy but many people want the benefits of whole life insurance.

The Value of Term Life Insurance

Term life is designed to help people purchase the protection they need at the lowest cost or when they only need coverage for a specific period of time. Term life insurance has a guaranteed death benefit but no cash value and the premiums will increase at pre-determined intervals such as 10 years, 20 years or you can buy a level term policy to age 100.

It is also very often the product of choice when life protection needs may be high as when your family is growing. Term life insurance can also be an effective way to provide retirement income if you take a term life 100 policy or there is an age disparity.

Whole life insurance, in contrast to term life insurance, provide life insurance coverage plus other additional living benefits, including guaranteed cash values. However , you are then paying interest on your own money if you borrow against the cash value.

The Value Of Whole Life Insurance
Cash value life insurance is often the best long-term solution for many people. Here are just a few of the reasons:

1. Whole life cash value insurance provides life long insurance protection as long as you pay the premium. Regardless of your subsequent health, the life insurance will remain in force.

2. Whole life insurance builds guaranteed cash value. This cash value can be used for a down payment on a home, to help pay for your children’s education or to provide income for your retirement

A short comparison list may help illustrate the differences between term life insurance and whole life insurance:

Term Life:
- Designed for short term needs, except term to 100
-You pay for pure death benefit protection, without cash value accumulation, just like your car and home insurance
- Inexpensive, with known costs increasing at each renewal
- Term conversion privileges are available with most policies up to convert to a permanent policy that builds cash value

Whole Life
- Designed for long term needs but is not cheap
- Has cash value accumulation which is accessible through loans or partial withdrawals. You pay to borrow your own money
- Premiums are high for the life of the policy

Annuities: An option for any retiree

2009-11-12T14:46:00.001-05:00

Annuities: An option for any retiree

My comments from the article

I just want to point out a few things:
1." adjusts the payments for inflation ".If you do this,you,ll find it will take at least 10 years or so to reach the unadjusted income level on a monthly or annual basis.Of course you will still be behind in income received to date,which will take more years to accumulate.You have to find another way to provide inflation protection.
2." Annuities reflect interest rates at time of purchase ".Annuity rates are a blend of age and long term bond rates,not GIC rates.
Otherwise this is a good general article;as the writer says you should go to a broker who will give you quotes from all the companies so you can choose the best-paying life annuity.

Ivon T Hughes

Questions and Answers

2009-10-13T13:12:00.000-04:00

Is it legal for funeral homes to take assignments on life insurance policies in Canada for the purpose of paying for funeral and burial expenses?

Send an email to www.assuris.ca which may be able to help you. That is the company set up by the major Canadian life insurance companies to provide backup coverage for clients in need.It is not-for-profit organisation which could possibly help you with this question on life insurance.

How Are Life Annuity Rates Arrived At?

2009-07-27T11:08:00.002-04:00

Life annuity rates are a blend of ages and long term bond rates, not current GIC rates. The age factor is predominant. In other words, you can wait, but you then need the time to make up for taking a slightly less payment today. In other words if the payment is $500 today and $550 in 1 year's time, you need 120 months to make up the loss of the missed payments. It is something you need to consider.

Is There Cash Value In A Term Life Insurance Policy?

2009-07-21T09:03:00.001-04:00

No,the difference between term life insurance and whole life insurance is
the cash value.

Term life insurance has no cash value;think about it like your car or house
insurance.If your car isn't totaled or your house doesn't burn down,you
need to repeat the payment the next year.

Whole life insurance on the other hand is more expensive as you are,to some
extent,prepaying the premium or building up a savings account from which the
life insurance premium can be paid.

Life Annuity Protection

2009-07-09T11:11:00.001-04:00

If I purchase a life annuity or life annuities from a large life insurance company in Canada,what protection do I have for my income and capital?

If you purchase a product from a life insurance company which is a member of Assuris, you are protected by Assuris. If your member life insurance company fails, your life insurance policy will be transferred to a solvent company.

A Life annuity policy that pays a monthly or annual income benefit, is protected under Assuris’ income protection. On transfer, Assuris guarantees that you will retain up to $2,000 per month or 85% of the promised monthly income benefit, whichever is higher. Registered and non registered benefits are protected separately. A joint life policy is protected separately and in addition to the individual lives.

Ownership is not relevant as the protected person is the annuitant ,the individual who is receiving the life annuity benefit.

Is it legal to have two life insurance policies?

2009-07-09T09:22:00.000-04:00

Is it legal to have two life insurance policies?

Yes,you may have,at least in theory,as many life insurance policies as you wish.

And it is certainly a good idea to at least review your life insurance policies at each major life change.You may get married,someone dies,a child is born and events like these could lead you to review your existing life insurance policies

Life Insurance: What to Look For in a Life Policy

2009-06-11T14:00:00.001-04:00

Life insurance means that you are protecting yourself and your loved ones. But how can you be sure you are choosing the best life insurance policy?

6 REMINDERS OF WHAT IS IMPORTANT IN A LIFE INSURANCE POLICY.

1. Choose a company that is strong and stable. When you buy a life insurance policy, you want to be sure the life insurance company will be there when you need it. Check the life insurance companies for a good record.

2. Choose a life insurance company with a good back record and experience. You want to buy a life policy from a reputable company which you can prove that it has stood the test of time.

3. Deal with an experienced professional. Choosing the right life insurance professional is a crucial step in helping you achieve your life insurance goals.

4. What do you want your life insurance to do for you? Do you want a life policy that allows you to access cash value in the future or just provide protection. When it comes to life insurance, one size does not fit all.

5. Choose from all the life insurance companies quoting. That is the only way to get the cheapest life insurance premiums.

6. Make sure your life insurance keeps up with your life changes. As your life changes, so do your life insurance needs.

FAQ on Life Annuities

2009-06-05T10:17:00.001-04:00

Question: Are registered annuities considered life insurance products and are the proceeds at time of death tax exempt?

Answer: Life insurance companies issue registered life annuities. The proceeds at
death are not tax exempt.

FAQ on Life Insurance

2009-06-04T11:19:00.000-04:00

I am looking for an insurance - life/ term insurance + mortgage insurance +
content insurance + house insurance.

I am buying a new townhouse, closing will be on 1 August. My lender offers
me life+mortgage insurance but their rates are high.

I have some life insurance from my employer. I need an additional coverage.
I prefer to buy a package including all insurance I need.

I live in Kamloops BC. I am 48 (will be 49 soon); female,on-smoker, healthy.
Please let me know what information you need from me to send me a quote.

Good morning and thanks for the inquiry.

Life and term insurance and mortgage is the same product; just named differently
for marketing purposes.The other insurances are general and will be handled
separately as there are different risks entirely.

I am giving you a link where you will see a list of all the premiums for the
amount you want.Of course you can call me to discuss any time at,toll free,
1 877 842 3863.

Types of Life Insurance

2008-12-06T15:09:00.000-05:00

There are different types of life insurance available to financially protect your family in case of death of you, your spouse or your child. Insurance policies can range from just covering funeral costs to replacing the salary that would have been earned if the insured had not died. Some of the types of life insurance are term life insurance and permanent life insurance. This kind of financial protection keeps people in their homes, food on the table, children in college and many other financial burdens at bay when a loved one has died.

What is Term Life Insurance?

Term life insurance is an insurance policy that covers a specific period of time. When the policy ends, the insured would need to renew his or her policy. Having a life insurance policy for only one year is possible with term life insurance. The premiums for a term life insurance policy are typically more affordable than a permanent life insurance policy. Unlike a permanent life insurance policy, with term life insurance your policy will not have any cash value.

What are the Options With Term Life Insurance?

You can purchase a policy for a term of one year. At the end of that year, you would need to purchase another policy. Each year, as you get older, your premium will go up or you may become uninsurable. For these reasons, there are two options for term life insurance that you may want to consider. The first is called an annual renewable term life insurance policy, this policy will guarantee that you can renew your policy for a set number of years such as 10 or 20 years. The second is guaranteed level premium term life insurance. Your premium will remain at a set price for a period of between 10 and 30 years. These two policies will carry a higher annual premium from the beginning to off-set the fact that by the end of the set term you may be paying a lower premium annually than you would if you had just purchased a one year term life insurance policy year after year.

How do I get a Term Life Insurance Policy?

Contact an insurance agency or your insurance agent to get a quote on premiums for term life insurance. Some of the factors that will determine your rate are age, health, whether you smoke, and the amount you would like the policy to pay out. Check with other companies also, if you feel the rate is too high.

Take care of your loved ones by providing financial security for them with term life insurance.

Finding a Good Term Life Insurance Quote

2008-12-05T15:19:00.000-05:00

If you have been looking at term life insurance lately, then you know that there are many different types of term life insurance. You know that getting a good term life insurance quote, is determined by what you want in your insurance policy and how long you plan on being covered for. First let’s define what “term” is. “Term” means that there is a specific time period in which you will be covered. When that time frame ends so does the coverage, and you get no value for the money you have put into the policy.

There are many different types of term life insurance policies and you need to know this when you talk to a company and ask for a term life insurance quote. There are policies that only cover you for a five year period, while others can cover you for as long as 30 years. You should also realize that the longer coverage is going to cost more. There are different quantities that the coverage covers, and this depends on the amount you choose.

How Do Insurance Companies Factor Price of Their Insurance Quotes?

The cold hard truth is that insurance companies work off of statistics and probabilities. The longer you live and the older you are, the higher your probabilities are of dying sooner. So, if you are a certain age, an insurance company may only offer term coverage for a small number of years, say 5. If they do offer longer policies your insurance quote is likely to be much higher. On the other hand if you are in your 20´s, the probabilities of you living another 30 years are higher, so an insurance company is more likely to offer you a longer time frame in a policy, at a smaller price.

Getting the Right Term Life Insurance Quote

There are ways you can get a better deal on your insurance quote. First you should get quotes from more than one agent. You can also look online for a good quote, but try for sites that give you an instant quote. Otherwise you will have a ton of agents calling you every day.

When you get an instant quote you get information from several reliable insurance agencies, and you can make an instant decision as to the best type of insurance for you.

Make sure you pay attention to monthly payments, and to the term the policy is for. You want to really think about the type of coverage you need too. Be sure you get enough term life coverage to help your family and cover their needs, if something should ever happen to you.

Types of Life Insurance

2008-12-04T15:08:00.000-05:00

There are several types of life insurance policies available to the public. Choosing the right one for you and your loved ones should be based on your own specific needs.

Whole Life Insurance

Whole life insurance is a type of insurance that covers your entire life. Your premium will remain level and your benefits or coverage will decrease over time, with age, as your risk of dying becomes greater. The benefits are similar to term life insurance except that it covers the entirety of your life.

Universal Life Insurance

Universal life insurance in a policy that allows you to cash in on your own life insurance. You have the ability to pay more than the premium to create a cash value that you can borrow against. If the cash value is not touched, it will most likely go to the beneficiary upon death of the policy holder. Generally the investment is restricted to bonds and mortgages.

Variable Life Insurance

Variable life insurance is almost identical to universal life insurance, except that you have more options when it comes to choosing your investment vehicle. For example, with a variable life insurance policy, you have the ability to use stock funds as an investment product.

Term Life Insurance

Term life insurance is a personal life insurance that covers a specified period of time. In the event that you do not need to use your insurance, your premium would not be paid back to you. It is mainly geared toward younger adults who take out a term life insurance policy to cover expenses like funeral, mortgage, and loss of salary of the policy holder in the event of their death. There are different terms that you can pick but they usually don't last any more than 20 years. Term life insurance policies are not renewable. Most policies contain a suicide clause which terminates the policy if you take your own life within approximately three years of beginning the policy. When it comes to term life insurance, as you age, your coverage decreases. For a 70 year old that has had a 20 year, million dollar life insurance policy, their premiums will stay the same, month to month, but by the time they reach the age of 70, their policy may only be worth 500,000. There are many term life insurance plans that offer no medical exam. Term life insurance has many benefits as it is the most flexible when it comes to your previous health than most other types of insurance policies.

Finding a Good Term Life Insurance Quote

2008-12-03T13:01:00.000-05:00

If you have been looking at term life insurance lately, then you know that there are many different types of term life insurance. You know that getting a good term life insurance quote, is determined by what you want in your insurance policy and how long you plan on being covered for. First let’s define what “term” is. “Term” means that there is a specific time period in which you will be covered. When that time frame ends so does the coverage, and you get no value for the money you have put into the policy.

There are many different types of term life insurance policies and you need to know this when you talk to a company and ask for a term life insurance quote. There are policies that only cover you for a five year period, while others can cover you for as long as 30 years. You should also realize that the longer coverage is going to cost more. There are different quantities that the coverage covers, and this depends on the amount you choose.

How Do Insurance Companies Factor Price of Their Insurance Quotes?
The cold hard truth is that insurance companies work off of statistics and probabilities. The longer you live and the older you are, the higher your probabilities are of dying sooner. So, if you are a certain age, an insurance company may only offer term coverage for a small number of years, say 5. If they do offer longer policies your insurance quote is likely to be much higher. On the other hand if you are in your 20´s, the probabilities of you living another 30 years are higher, so an insurance company is more likely to offer you a longer time frame in a policy, at a smaller price.

Getting the Right Term Life Insurance Quote
There are ways you can get a better deal on your insurance quote. First you should get quotes from more than one agent. You can also look online for a good quote, but try for sites that give you an instant quote. Otherwise you will have a ton of agents calling you every day.

When you get an instant quote you get information from several reliable insurance agencies, and you can make an instant decision as to the best type of insurance for you.

Make sure you pay attention to monthly payments, and to the term the policy is for. You want to really think about the type of coverage you need too. Be sure you get enough coverage to help your family and cover their needs, if something should ever happen to you.

The Term Life Insurance Quote Process

2008-12-02T12:57:00.000-05:00

Once you are married and have children your top priority becomes that of protecting your family. You want to make sure they are never left wanting. You want to be sure that they can cover living and educational expenses should anything happen to you, or should you pass away. One of the best ways of doing that is by getting term life insurance. But how do you find the right term life insurance quote?

Actually getting a good term life insurance quote is not all that difficult, you don’t even have to know too much about the insurance world to get a decent policy. Most of the time you can find a good term life insurance quote right online, from an insurance company that has an online presence.

Term life insurance is much cheaper than whole life insurance because of the type of insurance policy it is. Your family can only collect if you should pass away within the time frame which you have the term life insurance policy in place.

If you have no life insurance, and your company doesn’t help pay for it, then term life is a great option. You can even start out with term life and then change it over to a whole life insurance policy with most reputable insurance companies.

The term life insurance quote you get will depend on the type of policy you get. It will depend on the number of years you want the policy for, and on the amount of payout you want from the policy. It will also depend on your current age. The older you are when you get term life insurance coverage, the more expensive the policy will be.

For instance, a 30 year term life insurance policy for 1 million will be more expensive than a 5 year policy for the same amount. And a policy that covers you for $50,000 for ten years will be less expensive than a policy for $100,000.

Before getting a Term life insurance quote, you should first decide on how long you want to be insured for. Do you want a 5 year coverage, 10 year, or 30 year? Remember the older you are when your coverage runs out, the harder it will be for you to get another term life insurance policy.

Then you should decide on the amount of coverage you need. You need to replace your income, but you also need to cover costs like educational costs, etc.

Have all of these questions settled in your mind before you go looking for quotes. Then you can go online and search for term life insurance quotes. You will see that several companies appear in your search.

You will have to fill in the requested personal information to get a true quote. But you can get quotes from several companies online, then compare what they offer with their price. Be sure you get quotes from reliable, long standing companies. You don’t want to purchase a policy, pay it diligently, only to find that the company goes bankrupt somewhere down the line.

This is all there is to finding a great term life insurance quote. It takes a little diligence, some reading and time to figure out what you want, but the process is pretty simple, and can be done from the comfort of your home.

Types of Life Insurance Pt 6

2008-12-01T11:10:00.000-05:00

Sorting through coverage information to decide which type of life insurance policy is best for you can be confusing. You want to find the best life insurance at the most affordable rate, but calculating the return of premium on a short versus long term insurance plan is best done with the help of a qualified agent.

The Difference Between Whole and Term Life Insurance

Whole life insurance policies, as the name implies, are purchased to cover your whole life, while Term life insurance is purchased for a specified period. Term life insurance , sometimes called death protection only life insurance, can be purchased in increments from one to 30 years, and upon death of the policy holder, pays the face value of the policy.

While term life insurance premiums are low for the stated period, the cost of renewing at the end of the term may be substantially higher. The premiums of whole life insurance, on the other hand, are the same throughout the life of the policy.

Insurance companies offer several types of whole life insurance and vary in the way they invest the premiums . Some allow you to pay above the minimum and let the policy holder choose the way it’s invested.

Determine the Amount of Whole or Term Life Insurance Benefit Needed

There are several factors to consider when trying to determine the amount of life insurance to purchase, including, but not limited to:
* Funeral expenses
* Debt pay off amount
* Amount needed for college funds
* Amount needed for survivors living expenses
* Mortgage payoff
* Value of current assets

The length of time it will take for your survivors to be self supporting must also be taken into consideration before you finalize the life insurance policy.

Convertible Term Life Insurance

If you only feel you need a large amount of insurance until your children are grown, through college, or until the mortgage is paid off, a term life policy for that amount of time may be a part of your complete financial plan.

Some term life insurance policies allow a conversion feature. Seek the advice of insurance agents to see if the possibility exists to obtain less expensive term insurance for now, and if financial or family circumstances may change in the future, change part or all to a permanent plan. Check to make sure the company allows the change with no medical exam.This also applies to term life policies.

Types of Life Insurance Pt 5

2008-11-30T11:04:00.000-05:00

A life insurance policy is a legally binding agreement between the policy holder, and the insurance company. The policy is the document that describes the details of the contract between the parties involved.

There are two basic types of life insurance, temporary and permanent. These two types can be separated into separate subdivisions. Namely: endowment, term, universal, variable universal, and whole life.

Endowment:
Endowment policies are contracts that build up cash value. Endowments are a permanent option. This value equals the death benefit, at a given age. The endowment age is a pre established age that the policy pays the face value. The advantage is that the endowment is paid, whether the insured lives or dies, providing the insured lives to a predetermined, specific date. This type of policy could be considered a form of retirement plan.

Term Life Insurance:
Term life insurance policy is based entirely on a specific term. The term is a temporary situation. The insured purchases the plan for a fixed premium, and a fixed term. At the end of the term, usually 5 to 30 years, the insured may purchase an additional term. At this point, the premium may increase, or the benefit may decrease.. This type of life insurance does not generate income at a later date. It is only payable in the event of a death.

Universal Life Insurance:
Universal life insurance was created in order to offer a greater flexibility option in terms of premium payments as well as the probable high rate of return. Universal life is a permanent solution. A universal plan typically includes a cash account. A portion of the premiums is added to the cash account. This could be considered as another form of a retirement investment. The policy itself indicates a either fixed or a variable interest rate on the insured’s investment.

Variable Universal
Variable universal life insurance is a type of insurance that has its advantages with respect to tax exemption. The policy holder creates an account with the insurer. The insurer then creates an account with a financial expert, usually within the same company. The account is then used to buy stocks. In the event that the stocks that the policy holder does well, then the insurance premiums are paid within the accounts. If the investments do not do well, it is up to the policy holder to make the payments himself. The advantage is that the policy holder can generate capital gains, without a tax liability. This is a permanent option.

Whole Life Insurance
The Whole life option is a basic plan. The insurer provides a table of what the policy is worth and when. The premiums are constant. The policy holder can opt to purchase Riders, which will provide maximum benefits, in the event of an accident, and the like.

Types of Life Insurance Pt 4

2008-11-29T10:00:00.000-05:00

There are three basic types of life insurance: term life insurance, whole life insurance, and universal life insurance. Whole life and universal life each use some of the insurance premiums to fund investments for the policyholder. These investments build a cash value, but require larger premiums than term life insurance. Term life insurance, however, uses the entire premium to buy insurance coverage. That is why term life insurance will provide more insurance for the same amount of money.

Term Life Insurance Explained

Term life is an insurance policy that provides life insurance for a year, or a set number of years, for a set premium. Term insurance does not build a cash value. Because term life only provides protection in the event of death it is just insurance and nothing else. There are no decisions required regarding investments or loans against the cash value. There are just three things to compare on a term policy insurance quote: the death benefit, the annual premium, and the amount of time the insured is covered. The benefits can remain level or change, the premium can remain level or increase, and term can be for one or more years.

Annual renewable term life insurance

The best type of life insurance may be annual renewable term life insurance. It is a one year policy that the insurance company will guarantee to renew at the end of the year regardless of the insurability of the insured. Rates for renewable term insurance policies start low, but then may rise over the life of the person. The policy is usually guaranteed to be renewable each year for a predetermined number of years. Depending on the policy this could be from ten to thirty years, and does not change even if the insurability of the insured does.

Renewable Term Life Insurance

Renewable term life insurance is a good choice for providing coverage of personal financial needs or responsibilities. If the insured should die before the term ends then the policy pays out to the estate or the beneficiaries. Caring for dependents, providing a dependent with money for college, paying off a mortgage, and paying for funeral costs are some of the reasons for buying insurance. These cost too much for most people to afford after the loss of the primary wage earner, but life insurance provides them with a solution, and annual renewable term life insurance will provide the largest benefits for the money.

Term Life Insurance

2008-11-28T10:45:00.000-05:00

It is important to buy a term life insurance policy to protect your finances in the event of an accident or diagnosis of a dreaded disease or critical illness. You can get free term life insurance quotes from term life insurance companies. Our term life insurance gives you the best term life insurance rates possible with the various types of life insurance.

Term Life Insurance for your Family

It is a wise decision to buy term life insurance for your family and loved ones. As most of us live from paycheck to paycheck and budget life, we can get more coverage for our money.You need to make sure that your term life insurance coverage,when invested,produces enough after tax income, to replace your financial support.

Choose the Best Term Life Insurance

The best term life insurance is one that is affordable and we should be able to continue to pay in case we lose our jobs or be retrenched. Before buying term life insurance, it is best to check with a few life insurance companies for the best coverage and best deals at minimum cost of premium. It gets more expensive the heavier we are, if we smoke, increase in age or drink too much.. You can pay annually which is cheaper or monthly which can be paid by credit cards with a lot of life companies. Most policies do not require medical examination for a minimum amount of life insurance coverage and based on your declarations.. So it is very easy to buy term life insurance

Get Protected With Term Life Insurance

Based on your age and health, the premiums may vary.. For the policyholder, this is the best investment decision you can make. The insurance agent can give you financial advice on which is the best policy to purchase for your family to get the full protection at an affordable price. The death benefit that your next of kin receives means they don,t have to worry about finances and payments. You can also use a calculator to check your savings with term life insurance as opposed to whole life insurance in the next 10 to 20 years.

Types of Life Insurance Pt 3

2008-11-27T10:40:00.001-05:00

Are you confused by the different types of life insurance? If so, you are not alone. While protecting your loved ones in the event of your untimely death is an absolute necessity, it is one that many otherwise conscientious people put off because they feel they don't have enough information to make an informed decision.

Whole Life and Universal Life Insurance

Whole life insurance is a permanent policy that will last as long as you live or as long as you pay the premium. Not only does this type of insurance offer protection, it also builds cash value. Many people use these policies as a savings account. Universal life insurance is similar to whole life, except that it allows flexibility with rates and premiums. While both policy types offer protection for dependents, they share obvious drawbacks. The most important of these is that they are more expensive than term life insurance.

Term Life Insurance

With term life insurance, the consumer is paying for just life insurance;pure protection. They don't have to worry about investments or whether they are getting a competitive interest rate. Because term life insurance has no investment component, the premiums are much lower for the same premium level as other types. People agree to pay a fixed premium for a term of time to be insured over that time. Most financial advisors recommend this type of life insurance.

Protection You Can Afford

If you want to protect your family and children by getting the highest level of life insurance you can afford, term life insurance is the perfect choice for you. Many people have found the right company and policy for by using an online calculator. Others like to get advice from a real agent. There are a wide variety of options for people who want to protect their family's future.

"Do I Qualify for Term Life Insurance?"

Many people wonder if they can become a policyholder if they fall into certain categories. Whatever your specific situation, there is sure to be a company and policy that is just right for you. For example, some companies will not insure a smoker or someone with an unfavorable medical history, while others will. Some will not insure people without a medical exam, while others instantly approve everyone who puts in an application.

Dying is not just traumatic for those left behind, but expensive. Survivors are left to pay medical bills, funeral bills, and still deal with everyday bills like a mortgage. It is essential to plan ahead with apolicy like term life insurance.

Choose Your Best Term Life Insurance With Care

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Term life insurance is suitable for those who wish to get life insurance with a limited budget as this type of life insurance, being affordable, provides you with outstanding coverage. It is in fact different from those type of life insurance policies, which charge you with large premiums With term insurance, the only thing you are required to pay is a small amount of premium which insures you for a fixed period of time.

Types of Term Life Insurance

Term life insurance, today, provides you with a lot of choices. There are many kinds of term life insurance such as straight term, decreasing term, increasing term, non-renewable term, renewable term, non-convertible term, convertible term and many more. So it is important for you to choose the one which suits best to your needs.

Salient Features of Term Life Insurance

Term life insurance provides you with flexible premiums and terms. The amount of money to be paid will not rise or fall depending upon the changes in company’s persistency, investment earnings, expenses and mortality. But the premium can not increase above a fixed amount stated in the policy. It is best for younger people looking for some cheap insurance as the premiums increase with the age of the insured. These policies guarantee death benefits and involve lesser complications at the time of claim.

Term life insurance provides an instant death benefit for the least amount of premium as compared to other traditional life insurance policies. Hence term life insurance is considerably less expensive and can be afforded easily by the consumer. Term life insurance covers a person for a fixed period of time such as ten years, 20 years or 30 years. As the name itself states, it is a temporary kind of insurance, for a limited span of time.

Term life insurance has a wonderful feature called a convertibility benefit, which allows you to convert your existing term policy into a permanent insurance policy. The best part is that in doing so, you do not even require a further medical exam.

Decreasing term life insurance helps in covering mortgage debts. An online search can help you to find and compare the quotes of different companies. Term life insurance is in fact one of the best deals available in the market and is often recommended by agents or brokers.

How Much Term Life Insurance Coverage Do you Need?

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If you have seriously thought about buying a term life insurance policy, then you are on the path toward protecting your family, in the event of your passing away. The problem that now another question may be gnawing at you. How much life insurance should you get?

As a rule of thumb, some life insurance financial advisors will tell you to multiply your actual income by seven. But still other advisors tell you to only buy a term life insurance policy to replace your current income, and others will tell you, that you only need enough insurance to cover you debts. Now which do you think is the real truth?

Every Term Life Insurance Policy is Different to Meet Different Needs
The truth is that everyone is different, so before you head out the door looking for that term life insurance quote, you need to analyze your personal situation and determine which is the best policy for you. So, getting the right term life insurance policy means you need to really sit down and do your finances. You need to think about the amount of money your loved ones will need to continue with their current life style. You should also think about future college cost, etc. The following method will help you determine the real amount of term life insurance coverage you will need.

Determine Short Term Life Insurance Needs
First you should determine what your family’s short term needs will be. This means determine what the final expenses, the outstanding debt and what the emergency expenses will be. You need to figure out the amount that should be covered for attorney fees, court costs, and taxes.

Determine Long Term Life insurance Needs
Next you need to cover your long term debt. By this we are talking about mortgage costs, college tuition etc. You can use college projection costs to determine the cost of college tuition. It is estimated that the cost of college rises by about 5% every year.

Every Day Needs
Then you need to determine what the family maintenance cost is going to be. This includes food, clothes, utilities, transportation and entertainment.

Think About Your Resources before Ordering Term Life Insurance
Once you have all of the numbers that tell you what income you need, then you have to figure out what your existing resources are. This means add up your savings, scotch, social security benefits, etc.

Realistic Term Life Insurance Coverage
To get a true estimate of what type of term life insurance coverage you want, you will need to subtract your resources from the needed income. This is the amount of coverage you really need. This way you don’t have to buy a term life insurance policy that is too large and you don’t get stuck with “too little” coverage either.

Once you have determined your needs, then you are ready to shop around and get different term life insurance quotes. The amount you pay will be adequate for the amount of term life insurance you buy.

Is a Term Life Insurance Policy Really Necessary?

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We have all seen the disasters that happen! The news broadcasts them day and night! We’ve seen the unexpected plane crash, the tornado victims, the car pile ups, the store shoot outs! So why are we blinded by these events, and why do we assume that nothing like this will ever happen to us?
Tell me, when was the last time you even thought about getting a term life insurance policy? If you are like many, you don’t think about it, and continue on with your daily activities, assuming that nothing will ever happen to you. But what if it does? Do you have children, a spouse? Do they need the income you bring in? What would they do, if you weren’t available? How would they survive? Do you really want to leave these questions unanswered…?

SHOPPING FOR TERM LIFE QUOTES

Have you ever shopped for term life insurance quotes? Have you shopped for whole life insurance quotes? Anyone that has looked around online, can easily be confused by the two different types of insurance policies. Obviously the premiums for term life insurance are lower, than the premiums for whole life insurance, but why?

Finding the Right Type of Life Insurance policy

Now that you know that life insurance is a necessity. If you want to provide well for your family, its time you choose the right type of insurance policy for you, or, for both you and your spouse. This is not a decision that can be taken lightly. The wrong type of life insurance can hurt your financial future. Let’s define what term, whole, or a combination of both life insurance contracts are, and how they can help you.

Details Of Life Insurance Plans

Term life insurance policies are insurance plans where you pay a low monthly or yearly payment, and in exchange the insurance companies pay the amount agreed upon at the signing of the contract, but only in the event that you should die. This type of life insurance plan does not return any money to you and there is no value to the policy itself, except for the death benefits. The advantage is that it is a relatively inexpensive plan. If you do decide to buy term life insurance, then you want to find a plan that is renewable, or that is a longer term. Most long term life insurance plans are going to be a bit more expensive than short term life insurance coverage.

Term Life Insurance Vs. Whole Life Insurance
Ok, we have gone over what term life insurance is, but now let’s go over what permanent life insurance policies are. Whole life insurance policies offer death benefits, but they are also a type of “savings account.” This means the policy has a cash value, and you can get some of what you paid into it back. You can either cash in the policy or borrow on it. Obviously, this type of policy is more expensive than a term life insurance policy.

Getting Either a Term Life Insurance Quote or a Whole Life Insurance Quote
Getting a life insurance quote is really simple. All you have to do is look online. But be careful, you really need to know what you are buying before you make your purchase. Read about the length of the term, find out if it is renewable, and what the requirements are. In the case of whole life insurance, choose a reliable insurance company and check on the cash value of the policy.