Author: Dean Shainin

Basically, all life insurance policies are either term insurance or whole life insurance, or a combination of the two. However, there are many different forms or variations of life insurance policies.

With universal life insurance, you are able adjust the premium and the policy to the amount you think you need.

For a person who wants to have control of the financial and investing aspect of their insurance policy, their option will be a variable life insurance policy.

So, What Is A Term Life Insurance Policy?

As the name suggests, a term life insurance policy provides insurance protection for a precise period of time, such as 5, 10, or 20 years. At the end of the term period, the policy expires with no accumulated cash value, and no benefits are payable. The death benefit is only paid if you die during the term period. Term insurance policy can also be defined as “insurance that is actuarially designed to expire before you do.”

Although the premiums on term insurance are generally low, they increase substantially as your age increases. Due to this reason, a term life insurance policy is the most economical when purchased at a younger age and when the term is longer. Although the short term renewable policies would initially be less expensive, the premiums start to increase significantly after middle age.

As an illustration, in an annual renewable term insurance policy with a $200,000 death benefit, the annual premiums might look something like the example below. Remember, these are just examples to show the difference of cost with age.

$300 / year age 35

$900 / year age 50

$2,500 / year age 65

What Is A Whole Life Insurance Policy?

Whole life insurance is the most common type of life insurance sold. A whole life insurance policy remains in force until you either die or reach age 100, as long as you pay the premium as scheduled. Whole life insurance is also known as ordinary life, or permanent insurance. The main characteristics of a whole life insurance policy are level premiums, level face amounts, guaranteed values, and a relatively high degree of safety. Whole life insurance builds a living benefit through its guaranteed cash value. This enables the policy owner to access this cash for emergencies, as a supplemental source of retirement income or for any other needs.

Another important feature of whole life insurance is that it includes both insurance and a savings aspect. Whole life insurances are often used for long term financial planning. The policy’s other positive feature is the level premiums. So basically you always know what the cost of insurance will be, and you never need to be worried about your monthly premiums going up, thus giving you some peace of mind.

The risk factor of a whole life insurance policy and company is much different than it is for something like an auto policy. When an insurance company issues an auto policy, it hopes that the policy holder will be a safe driver and will never be in an accident. On the other hand, when an insurance company issues a whole life insurance policy, it knows it will someday be called upon to pay the claim.

Author: Dean Shainin

Many things factor in with getting a cost effective life insurance quote and policy. It is wise to take some time out and do some important research first. With online access, it is much easier today than it used to be. There are many affordable life insurance offers on the Internet that would greatly benefit the beneficiaries we love. Taking the time out to educate yourself can be well worth your while.

Finding a life insurance policy is something that we should not rush into. There are some things we should learn about a cost effective life insurance policy, to be able to come up with a decision that would be the most cost effective. Here are some helpful tips in getting a cost effective life insurance policy.

When choosing a cost effective life insurance policy, price should not be your only consideration. The lower the cost of the life insurance, the better for us, of course. But, there are more things about cost effective life insurance programs than just the price.

The life insurance policy you are considering should be offered by a company that has proven credibility and reliability. Nothing beats the assurance of having your life insurance taken care of by a company backed by years of excellent service and proven track record. Be sure to look into the BBB of the life insurance company’s you are considering first and be sure there are no unresolved issues.

Looking into the period by which you would pay the life insurance policy should also be considered, and this should be compared with all the life insurance company’s you are considering.

The amount that would be due once the life insurance policy has matured, should be of a substantial amount. Some life insurance policies pay up to $250,000 for a 30 year period of a monthly $35 payment you make for the policy. This would be a great offer for a life insurance policy, with the great value of the life insurance policy itself, the realistic time period , and the monthly amount demanded. Be sure to read the fine print, before you sign up with a life insurance policy.

A life insurance policy will not benefit you directly, but a cost effective life insurance policy will benefit your stated beneficiaries upon your demise. You can rest assured that your loved ones will be taken care of financially with the right life insurance policy.

There are many benefits that can be derived from a life insurance policy, if paid out in one large payment. This would be very convenient for the beneficiaries, because of many long term issues that could arise over time.

Most life insurance policies are generally given favorable tax options to you and your loved ones. Be sure to retain an experienced accountant to explain the benefits to you.

Author: Matthew Hick

Everyone needs life insurance, especially if you own a home or have a family. It’s a way to ensure that those who depend on you financially will have what they need in the event of your death.

Most people understand the need for life insurance; they just don’t know how much they need. The point of life insurance is to take care of your family after your death in the same manner you would if you were still alive. Most insurance experts recommend taking out a policy that is between 5 and 15 times greater than your annual gross income, or alternatively, an amount up to your annual salary times the number of years before your youngest child is out of college.

If that amount seems too high, consider how much your family would need to pay all of their expenses indefinitely if your salary were to suddenly stop.

Economic replacement is another way to calculate the amount of insurance you need. Instead of trying to “guesstimate” how much coverage you will need now and in the future (requiring you to change policies every few years), the “full economic replacement” concept encourages applicants to purchase the maximum coverage allowed by an insurance carrier. Although pricier than a need-based policy, it offers the most comprehensive protection for your family, no matter how your lifestyle changes in the future.

Term or Whole Life?
There are two basic types of life insurance available: term and whole life or permanent coverage. Term life insurance is the cheapest form of life insurance. But, it does have a downside. It is only in force for a specific time and once it expires, you lose the death benefit unless to take out a new policy, which tends to cost more as you age. Still, it remains a valuable asset for those who can’t afford a more expensive whole life policy.

In contrast, permanent life insurance is just that - permanent, providing coverage for your entire life as long as your premiums are kept up to date.

Another benefit to this type of policy is the ability to accumulate tax-deferred savings that can be borrowed in the future for such things as college costs, to buy a home, or to provide retirement income. Unlike term policies, which cost more with each policy turnover, permanent whole life policies allow the buyer to “lock in” the premium amount for the life of the policy.