Whole life insurance is the most prominent of the insurance products on the market and the oldest. Whole life literally means whole life. Term life is simply a life insurance policy that will last for a specific amount of time, i.e. 5 years, 10 years etc. After that date, the policy will expire. Universal life is what is called a participating policy with many extra provisions included such as: earning interest on the cash value accumulated, ability to change premium payment schedules ,and many other features for the owner.
Term Life Insurance
For the many who are just beginning their working years, buying a home, or starting a family, term insurance would be a great choice. This product is much more affordable for higher amounts of coverage. This would mean that you can purchase enough to cover the payoff of a current mortgage and preferably enough for the surviving spouse to live on until they are able to join the working force once again. Decreasing term would be another great idea. This could follow your mortgage year by year until the home is paid off. If that inevitable event happens before that time, the policy would have enough coverage in it to cover the existing payoff of the family home. The down side to term life insurance is that it does not build any cash value as you pay your premiums. This means no built in savings account.
Whole Life Insurance
Whole life is a product that has been around for more than 100 years. Whole life covers the policy holder for their whole life as long as premiums are made. The only true advantage to this plan is that you are covered for life and the cash value savings account built inside. The cash value is a portion of the premium payments made into the policy. This account can be cashed in or borrowed against. Of course borrowing against will lower the face amount by the borrowed amount, plus any and all interest until payed back. Never borrow unless it is an emegerncy. Whole life insurance should be purchased to pay for all final expenses. Funerals are not getting any cheaper, the average cost across America is nearly 7000 dollars. Of course the older an individual is, the more they will pay per 1000 of coverage. When individuals reach retirement, this should be looked into, and this should be the only life insurance you carry.
Universal Life
Eventually, younger consumers became wise to how much they were paying over their life for whole life protection. Companies turned to Universal life as the answer. Universal life has many unique qualities that the policyowner can take advantage of. Some earn a decent interest rate in the cash value account. Some are allowed to set their own payment schedule and even skip payments from time to time without penalty. Universal life would be an alternative for the younger generation just starting out. For the price of premium, universal life has the bang for the buck. In this day and age, saving money is important! So is saving the family homestead.
Life insurance is not just something our grandparents used to purchase. Life insurance is protection for our families. It is true that we do not know when that day will come for us, but we do know that day will come. It will always be a shock, it will always bring sadness, but with the right coverage, it will not be the end to your families way of life.
From your mailbox to your television to your child’s take home school notices, someone is telling you that you need life insurance. Most often, the insurance being touted is term life insurance, one of the simplest forms of life insurance on the market. Term life insurance pays a death benefit to the person or persons identified as beneficiaries if the insured dies while the policy is in force.In order to maintain term life insurance, the policy holder must pay an annual premium, often payable in monthly installments. The premium amount is usually based upon the age, lifestyle and health status of the insured.
Some of the most frequent questions asked regarding term life insurance are:
- Is term life insurance necessary, and if so, how much coverage do I need?
- Are there special considerations?
- Should I insure myself, my spouse or my children?
Term life insurance is the simplest form of life insurance coverage. You pay premiums to an insurance company each month based on an annual premium. If the insured dies during that year, the insurance company pays the beneficiaries a fixed amount as a death benefit. Term Life insurance coverage is not an investment vehicle. It will not pay dividends. It cannot be cashed in at the end of the term. The only purpose is to pay a cash benefit to survivors if the insured person dies during the term that the policy is in force.
Generally, the insurance company determines the premium based on the age of the insured and the face value of the insurance policy (the amount of money the insurance company will pay upon the death of the insured). Since the chances that the policy holder will die increases as they advance in age, the older the insured is, the higher the premium will be. Occasionally there are conditions that may increase the or perhaps even lower the premiums. For instance, many insurers will reduce the life insurance premium if the insured is not a smoker.
There are basically 2 types of term life insurance differentiated by the way the premium is paid. With standard term life insurance, premium payments will increase each year or at the beginning of each term renewal. Standard term life insurance is often the most affordable form of insurance for a young person, but can be prohibitively expensive as they get older. In level term life insurance, the premium is guaranteed to remain the same over the life of the term, regardless of changes in health or age. Often, level term life insurance is taken out for periods of five, ten or fifteen years, and is renewable for one, two or three terms. It is more expensive at the outset, but comparatively less expensive in toward the end of the policy term, since the premium is guaranteed not to increase.
Anyone with long term debt should consider term life insurance, particularly if their death will cause a financial hardship for those left behind. This is the only way to guarantee that their financial needs will be met. Get a free quote for term life insurance today to compare rates from several carriers.
There are many websites that offer you quick and easy life insurance quotes. You might be wondering which one is the best or which one offers the best rates. One thing you need to be aware of is that the rates are the same no matter which website you go with. Life insurance carriers update their rates monthly and websites cannot quote you any higher or lower than the rates published directly from the carriers. So if the rates are going to be the same no matter which site you go to, then the important thing is to find a site that has been doing it for years, that provides excellent customer service, and offers you quotes from many highly-rated life insurance companies.
What you should consider before choosing a term life insurance policy:
• Compare the costs. Get multiple quotes from different carriers to find out which carrier has the best rates for you.
• Compare policies. You should compare quotes for different types of policies such as a 10 year term, 20 year term, or return of premium.
• Guaranteed periods. Make sure your rate is guaranteed to remain the same for as long as you need the coverage.
• Insurance carrier rating. A.M. best provides financial ratings of insurance companies. These ratings can give you an idea of their financial strength. It’s something important to look at because you want to be sure you go with a company who can pay their claims now and in the future.
Remember that there is a big difference between a website that has been in business for one year and one that has been around for 25 years. An experienced company will be able to help you find the absolute lowest priced life insurance policy for you based on your particular situation- your age, health status, family health history, occupation, hobbies, smoking status, and your driving history. It’s very important to work with someone experienced because you’ll be paying for a life insurance policy for the next 10, 20, 30 years or more so even a small savings can add up to big dollars over time.
At 52 years old your life insurance needs have probably changed a lot since you were in your 20s, 30s, and 40s. You might need less life insurance because your children are grown and on their own now or maybe you’ve paid off your mortgage. Or maybe you need more insurance because your children are just starting to enter college or maybe you’ve bought a bigger house. Either way, you can still find affordable life insurance at 52 years old. If you are looking for term life then you should know that you can still qualify for a 30 year term life insurance policy if you are in good health. That means that you will have insurance coverage until you are 82 years old.
Here’s an idea of what you might pay for term life and whole life insurance coverage at 52 years old. These are example quotes based on a preferred health rating for a non-smoker.
$250,000 30 Year Term Life Insurance
Male: $1350 per year
Female: $910 per year
$250,000 Whole Life Insurance
Male: $4000 per year
Female: $3200 per year
For the most accurate rates, get a free quote today.
