Term life insurance > In Praise Of Whole Life Insurance

In Praise Of Whole Life Insurance

by: Donald Lusan

Whole life insurance even though it is not the least expensive life insurance policy you can buy can still fulfill the needs of some. Why some people have such an aversion to this policy I will never understand. Term insurance is also good insurance and can fit into more situations than whole life because of the low cost. More people can afford it. Both types of life insurance serve the same purposes, however, when you buy whole life insurance you get some additional benefits that term life insurance does not provide. Let us take a look at the whole life insurance policy and it's benefits.

Level Premium

Whole life insurance has a fixed level premium which never increases for as long as you own the policy. When you pay a whole life premium a portion goes to pay for the death benefit and a portion is applied to cash values. In the initial years a portion of the premium is also applied to administrative costs.

Death Benefit

Like any other life insurance policy the whole life insurance policy has a guaranteed death benefit which can be paid either in one lump sum or in the form of a monthly income. This death benefit is usually paid free of federal income taxes. There are several income options including a life income, an income for a fixed predetermined period and an income for a fixed amount. The insurance can also keep the principal and just pay the interest. The principal is paid upon demand.

Cash Values

The whole life insurance policy contains a guaranteed cash value which accumulates tax deferred. If you are ever in need of cash you may borrow from your cash value. You don't need to tell the insurance company why you want the money and you pay back the money at your convenience.

Dividends

Cash values earn dividends which depend on the performance of the company. these dividends are not guaranteed. They can be taken in cash, can be left to accumulate interest, can be use to reduce premiums or they can be used to purchase paid up additions. Paid up additions on a whole life
insurance policy is a fully paid up whole life policy. These paid up additions have cash values and also earn dividends.

There are many riders you can add to your whole life insurance policy. The two main riders are the waiver of premium benefit and the accidental death benefit rider also known as the double indemnity rider.

Waiver Of Premium.

If the insured should become disabled, any time after six months of disability the life insurance company will step in and pay the premiums even if the disability lasts for the lifetime of the insured.

Accidental Death Benefit

If the insured person should die in an accident, for example an automobile accident, the life insurance company will pay twice the death benefit. If you have a policy for $100,000, and you have the accidental death benefit rider, the insurance company will pay $200,000 to your beneficiary.

The above benefits may be worth the extra premium you would pay for a whole life insurance policy.

About The Author

Donald Lusan

For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and best life insurance companies in the United States as well as Canada. His advice is invaluable.

Donald's website is: http://www.lifeinsurancehub.net.

Vacation Travel Insurance Tips

Vacation Travel Insurance Tips

by: Peter Shannon

Travel insurance is an important but often overlooked part of your vacation. Whether you are traveling to a foreign country or to the next state you should consider travel insurance.

Some of the reasons to have insurance are to cover medical expenses, life insurance for your family, or trip insurance when something goes wrong.

If you have medical coverage, check with your insurer to find out the specifics regarding your planned destination.

You can buy medical coverage for the duration of your trip or for longer periods. Some travel insurance policies cover multiple trips of specific duration. Some will cover you for travel up to a year.

Planning a skiing or mountain climbing vacation? You may want to consider evacuation insurance. If you need to be rescued it is quite possible that the you will end up with a hefty bill to pay for the service.

If you are going on a cruise,...

Vacation Travel Insurance Tips

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Second to Die Life Insurance Policies

Second to Die Life Insurance Policies

by: Ivon T. Hughes

A second-to-die life insurance policy, or survivorship life as it's sometimes called, insures two lives - a husband and wife usually or business partners. However, the death benefit isn't paid out until the second insured person dies.

Usually, the death benefit from a second-to-die life insurance policy is intended to go to the children , a charity or pay taxes owed after both spouses pass away.

In the U.S. there is a marital deduction permitting you to leave an unlimited amount of assets to your surviving spouse with no taxes payable at your death. Those assets then become part of the estate of the spouse and if it includes a second to die life insurance polciy it could help pay any taxes. In Canada, there is more lenient tax treatment.

There are also tax ramifications for small businesses, which is why business partners also purchase second-to-die policies.

THE REASON...

Second to Die Life Insurance Policies

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Guide to RIB Insurance

Guide to RIB Insurance

by: Patrick Altoft

If you require insurance for your RIB, but have been presented with a number of alternative policy wordings from a variety of companies, Noble Marine's Guide to RIB Insurance may help you decide the sort of policy you require. Full details of the cover provided and an interactive quotation form, providing quotations at any time of day or night, can be found by clicking the RIB Insurance link on Noble Marine's website.

Both the cover provided by different RIB insurance companies and the service they offer, can vary greatly. Bear in mind that a cheaper policy may end up costing you more, if you have to make a claim and you should always check what cover is being offered before signing up.

Q. What should I look out for?

A. Everyone's needs are different, and only you can decide if wider cover is important to you. It is essential though, to understand what is being offered to you, before being...

Guide to RIB Insurance

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Critical Illness Insurance And Life Insurance Cover For Better And For Worse.

Critical Illness Insurance And Life Insurance Cover For Better And For Worse.

by: Rachel Lane

There are three main types of insurance cover you can buy to protect yourself and your family: life insurance, private medical insurance and critical illness insurance. If you want your financial health to be completely bionic then you could choose all three types of insurance, but if your family finances are more restricted, it might be better to insure yourself with critical illness insurance and life insurance. Critical illness insurance should not be confused with private medical insurance or even income protection insurance and it?s important that you do a full evaluation of your needs before you pursue the different insurance options.

The purpose of critical illness cover (CIC) is to fill a gap that is left by traditional life insurance policies, which will only provide a pay-out on the death of the policy holder. CIC provides a tax free lump...

Critical Illness Insurance And Life Insurance Cover For Better And For Worse.

Term life insurance > Critical Illness Insurance And Life Insurance Cover For Better And For Worse.

Life Insurance - Money Saving Top Tips

Life Insurance - Money Saving Top Tips

by: Michael Challiner

More and more people are buying life insurance online and the numbers seem to be doubling every two years. The reasons are clear. Prices are lower on the Internet and life insurance is fundamentally a simple insurance product.

Despite the underlying simplicity of life insurance, most web sites channel their online clients through a telephone based help and advice service manned by experienced personnel. They represent your safety net so if a little technical knowledge is called for, help is at hand.

But it?s always a good idea to have a few Top Tips in your back pocket when you?re shopping online for life insurance. They?ll help you ask the right questions and find the best policy.

1. Always have your Life Insurance policy ?Written in Trust?.

This means that in the event of a claim, the money goes directly and immediately to the person(s) you nominate when you...

Life Insurance - Money Saving Top Tips

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Is Pet Insurance Right for You?

by: Sherry Kirchenbauer

What is Pet Insurance?

Pet insurance is a health plan for your pet to insure against large and small unexpected veterinary bills over the life of your pet.

Potential treatments for your pet now rival human treatments both in sophistication and cost. Pet insurance is designed to alleviate much of the financial risk and insecurity that caring for your pet can bring.

Pet insurance is common in many European countries. However, it remains rare in the U.S. There are about 130 million pet cats and dogs in the United States, but only a handful of pet owners (fewer than 300,000) take advantage of these policies. Pet insurance has been around for about 20 years, but many pet owners don't know that it exists, or they think the insurance costs are too high.

Should You Get Pet Insurance?

There have been tremendous technological advances in the care that is available for our...

Is Pet Insurance Right for You?

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Whole Life Insurance Explanation

Whole Life Insurance Explanation

by: Donald Lusan

A whole life insurance explanation should be required reading for anyone about to purchase life insurance. Whole life, in my humble opinion, has in recent years got a bad rap. People tend to buy term life insurance because it is cheaper. Although I believe that a good term insurance can take care of the insurance needs of most people, a good whole life insurance policy is worth looking at.

Guaranteed Death Benefit

The death benefit of a whole life insurance policy is guaranteed to stay level for the duration of the policy. If you think about it, that means a lifetime. That type of guarantee cannot be sneezed at. The premiums of your whole life insurance policy is also guaranteed never to increase. This is also a very important feature. The policy can never be cancelled by the insurance company.

Cash Value Accumulation

A whole life insurance policy has cash values, that cash...

Whole Life Insurance Explanation

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Term life insurance tvs In Praise Of Whole Life Insurance

Printer Cartridges - Step Back in History

by: Martin Smith

You are working and trying to print out important documents when you discover that you are out of ink. This would have been a big drawback in the past. Most printers years ago used daisy wheels or ribbons to print documents. The evolution of printer cartridges should be looked at.

1984 saw the introduction of inkjet printers and printer cartridges. Now changing ink cartridges and printing documents...

photo printer Term life insurance Printer Cartridges - Step Back in History

Term life insurance > Printer Cartridges - Step Back in History

Term life insurance

How Do You Circumvent Motorcycle Risks?

by: Maricon Williams

Risks, dangers and threats are part of motorcycle riding. It is already an innate part of mounting on a bike and going mobile.

If you miss a signal of another rider be it a hand, lights or horn signal, you will be susceptible to an accident. If you missed the right moment to step on the brakes, you will likely encounter a mishap. In cases like these, how sure are you that you will make it alive?

When...

boots

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Fundraising Letters: Questions To Ask Yourself Before You Ask Anyone For A Donation

by: Alan Sharpe

I have a brother-in-law who farms and drives a 16-wheeler for a living. When I told him that I start each business day with a blank computer screen that I must fill with at least 1,000 words by noon, he almost fainted. He says he could never do it because he wouldn?t know where to start. But the same goes for me when it comes to pulling the engine out of a John...

Fundraising Letters: Questions To Ask Yourself Before You Ask Anyone For A Donation Term life insurance hedge funds

Term life insurance > Fundraising Letters: Questions To Ask Yourself Before You Ask Anyone For A Donation