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.
Do you need life insurance? If you bring home a paycheck through employment or business ownership, your family might be hard-pressed to meet living expenses without your income. Or, if you are a stay-at-home parent, many of the contributions you make are not accounted for like caring for children, housekeeping, errands, etc. Salary.com created a mom salary calculator to help families determine how much the stay-at-home parent’s salary is really worth. You’d be surprised to know that a stay-at-home parent with two children has an annual median salary that equated to more than $122,000.
If you are business owner, you need to plan ahead for a smooth business transfer of your interest in the business. You may want to pass the interest along to another family member, or you may want to have your investment transferred to your loved ones.
Life Insurance can provide funds to help cover all of these expenses and more. So where do you start? You can start by contacting an Allstate Agent for help, or you can learn more about the basic types of life insurance: Term Life Insurance and Permanent Life Insurance.
Term Life Insurance
Term Life Insurance offers basic protection with level premiums for a fixed span of time, typically from ten to 30 years. You simply pay premiums for this period of time and you’re covered. Learn more about Term Life Insurance or get a Term Life Insurance quote now.
Permanent Life Insurance
Permanent Life Insurance is designed to provide a cash value and can be either fixed or variable.
Permanent Non-Registered Life Insurance Protection options:
Universal Life
Universal Life insurance is permanent life insurance that gives you flexibility. For example:
After selecting an initial premium and death benefit amount, you can decide when and how much you want to pay into your policy. You can increase payments to build additional cash value, decrease the death benefit amount, decrease payments or even skip payments as long as your cash value is adequate to cover the cost of insurance charges and other policy related expenses.
Permanent Variable Life Insurance Protection:
The Variable Life insurance option is similar to universal life insurance, but instead of your cash value growing at a fixed interest rate, you can choose to purchase a variable policy which may increase or decrease in value.
Variable Life Insurance benefits include:
- The option of investing your premiums in a wide range of variable sub-accounts. Many variable life policies allow you to allocate funds among a range of variable subaccounts ranging from conservative to aggressive.
- Your death benefit remains protected as long as you meet the conditions stated in your policy.
- In many variable life policies, after paying the initial premium, you decide when and how much you want to pay into the policy, as long as there is sufficient net surrender value to pay the cost of insurance charges and other policy related expenses.
- In many variable life policies, you can increase or decrease your death benefit amount without buying a new policy (subject to additional terms and conditions).
- Your cash value growth increases or decreases depending upon the terms of the variable policy and on the performance of your selected variable subaccounts.
For more information, please visit: http://myallstatefinancial.com/
AARP life insurance has policies which are obtainable to any member of AARP which are between the ages of fifty and eighty. The member’s spouse can also purchase a policy, but must be great than forty five years old. The decision over life insurance is an important one as it will great help in supporting your family with financial matters if you are lost.
Congratulations on looking into this information as this is one topic that no one really wants to talk about, but is critically vital to pretty much everyone. You’ll want the most appropriate coverage for your situation and goals at the best possible rates, called “premiums.” Based on your situation, you may want more covered than just burial costs. If you were to die, does someone (a spouse, child, or both) need financial support to continue to live their lives as they’re used to? Greater coverage over just burial expenses may not be needed in your situation, but be sure to think about the “big picture” when purchasing a policy. The premiums you pay are generally calculated on your gender, health, and age. The younger you are, the less you are going to pay, so don’t put off the decision for too long.
Term Life Insurance
Generally the least expensive type of life insurance, term life insurance accrues no cash value and is considered a temporary policy. It is basic coverage, but do not let that make you think it isn’t appropriate for you. It very well may be, just be sure to make an educated decision based on your unique situation. The premium you pay will never be increased from the amount you start with as long as you pay on time during the time the contact is in effect. Term is the most pure of the protection you can get. No investment or cash options, you just pay to have someone receive funds if you were to die.
Universal Life Insurance
Universal is one option that is different than term in that it accrues a cash value. It is also a kind of life insurance called “permanent” insurance (like Whole life). You’re basically combining a death benefit paid to the beneficiary with a savings plan. This savings is generally tax deferred, but make sure you check with the provider of your policy if you choose this route. Universal is also sometimes called adjustable life insurance. Many such policies, when they’re value and interest is accrued to a high enough amount, can have their premiums paid by the value of the policy. So in time, this can be a great policy to have.
Survivorship Life Insurance
Survivorship life insurance is another kind you can choose from. It covers the lives of two people but only requires one policy, or contract. This policy will pay the face value to the beneficiary only after both of the insured people die. Make sure you talk with a qualified professional to see where this type of policy may be best for you.
AARP life insurance may be what you’re looking for. They’re a large and experienced operation. You have many options and companies out there with similar experience, but you’ll probably be happy with AARP.
What is Universal Life Insurance?
“Universal” is the term used for life insurance that offers built in flexibility to change your premiums and the amount of life insurance you carry throughout the life of the policy. A universal life insurance policy will accumulate value as the premiums are placed in an interest building account. If your situation changes, and you decide you need more (or less) coverage, you can control how the universal life insurance policy operates. Many consumers have found that they appreciate the added control and hassle-free flexibility they receive from owning universal life insurance. As with any life insurance policy, the benefits provide financial security for your loved ones in the untimely event of your death.
What Can I Gain from Universal Life Insurance Quotes?
Once you’ve made the decision to purchase universal life insurance, the first step to securing a policy is to find out how much coverage you can afford. The best way to do this is by getting universal life insurance quotes. When deciding how much you can spend, remember that with universal life insurance, you are always able to add more coverage later if you want. Universal life insurance quotes will provide all the information you need regarding insurance rates, conditions, exclusions and benefits for the policy you are considering. It’s generally a wise idea to procure universal life insurance quotes from several providers to compare the different coverage options they have to offer. Once you have the quotes in hand, creating a table for comparison will allow you to decide on the most effective policy for your needs.
What if I’m not Sure About Universal Life Insurance?
If you haven’t yet decided that universal life is the way to go, consider getting universal life insurance quotes along with quotes for other types of life insurance. Just as with provider comparisons, use the quotes to compare coverage and benefits across the different policy types. Whatever your final decision, the universal life insurance quotes will ensure that you are making a well informed decision. If you’re still not sure you understand all the details of a policy, contact an insurance claim attorney or insurance agent for clarification.
How Can I Obtain Universal Life Insurance Quotes?
Getting universal life insurance quotes is a very simple process. Many insurance providers allow you to request and access quotes via the internet. Researching the internet will also allow you to gather information about the general policies and coverage that can help you decide companies you should ask for universal life insurance quotes. Aside from the internet, your insurance agent should be able to provide you with a variety of universal life insurance quotes to assist you in your comparisons. Most insurance agencies and online insurance providers will be more than happy to provide you with universal life insurance quotes for free. While life insurance can’t bring you back to your loved ones, it can certainly offer them a measure of security.
