The Life Insurance Policy and What You Need to Know Before You Buy
by: Don Adams
Are you looking to buy a life insurance policy?
Well, be careful. Life insurance can be difficult to understand and it's easy to be conned into buying something under false pretenses.
Recently a prominent life insurance company together with several of its agents paid a huge fine because it permitted the sale of a life insurance policy disguised as a retirement plan.
There was little attention given to what a life insurance policy is truly designed to provide.
Life insurance is not an investment for your benefit.
It's guaranteed income tax-free cash paid to someone you designate in the event of your death.
If you deeply care for someone and want to protect them, then buying a life insurance policy makes sense.
As primary bread winner in your family, your lost income could jeopardize the ability of those you love to continue to enjoy their standard of living.
The only way to guarantee an immediate replacement of this money is with the intelligent purchase of a life insurance policy.
Notice I didn't say term life insurance, low cost life insurance, or whole life insurance.
To your loved ones ... this doesn't really matter.
Over the years I've delivered millions of dollars of life insurance benefit to the families of deceased bread winners.
And you know what?
No one ever asked me what type of life insurance policy it was. They were just extremely grateful to get the money.
Term is the cheapest, but it's unlikely the death benefit will be paid since the life insurance policy will probably lapse before you actually die.
Right now the premium may seem cheap compared with other types.
But what happens when you're older?
Term life insurance premiums can be level for a specific number of years, but when that number of years is up the price will skyrocket to a point you won't be able or willing to pay.
Whole life insurance provides a lifetime level premium until the policy is literally paid-up.
This could be 10, 20 years ... or when you reach age 65, 85 or 100.
One big advantage is you don't have to worry about your policy expiring before you do.
One type of life insurance policy is not necessarily better than another.
But it's critical you understand what you are buying, how it works and your net cost.
After all, if the policy isn't in force when you die you have thrown your premium dollars right down a rat hole.
By the way, don't fall for that line about buy term and invest the difference.
Anyone who cons you with this bunch of malarkey has absolutely no idea how to intelligently evaluate the purchase of life insurance.
An excellent life insurance policy to consider is universal life.
This is the type of policy that guarantees the death benefit up to age 115 regardless of the performance of the underlying investment.
Although more expensive then term life insurance, universal life is far less costly than a typical whole life insurance policy.
But be careful because some universal life policies are sold by focusing on projected interest rates rather than contractual guarantees.
If you are considering the purchase of a whole life insurance policy from a mutual company that declares annual dividends, ask the agent for a hypothetical illustration using a dividend forecast at least one percent less the current rate.
In the past when long-term interest rates were higher, mutual companies credited very handsome dividends to their policies.
But today with long-term rates still depressed, it's unlikely a life insurance policy will perform as illustrated.
In summary, pay close attention to the guarantees of whatever life insurance policy you decide to buy. Also, make sure you know the credit rating of the life insurance company.
There is nothing wrong with term life insurance, but understand your options about converting to a permanent plan. This could be critical if you become uninsurable before the policy expires.
Remember, you may never get a second chance to make the right decision.
About The Author
Veteran financial consultant Don Adams provides easy to understand advice on a wide variety of money matters.
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How To Get The Best Child Life Insurance Quotes
How To Get The Best Child Life Insurance Quotes
by: Jon Butt
Getting child life insurance quotes on the net can be convenient, but are you sure that you are seeing the big picture?
You can see life insurance information child policies, but the words can be cryptic. The child life insurance coverage information could be well-hidden online too! Because child life insurance costs money, it's important to know precisely what life insurance coverage you can get. It may be best to talk to an authorized life insurance agent.
Question You Should Ask About Your Child Life Insurance
Is child life insurance really worth the premiums? Many question the importance of child life insurance. After all, if anyone needs to get insured, shouldn't it be the working parents? While this is indeed a valid argument, there are advantages to getting child life insurance.
It's not so much the benefits as it is about future eligibility. Child life insurance...
How To Get The Best Child Life Insurance Quotes
Term life insurance > How To Get The Best Child Life Insurance Quotes
Life Insurance Providing Little Protection from Terrorism
Life Insurance Providing Little Protection from Terrorism
by: Richard Green
Recent statements by the City of London Police Commissioner James Hart that future terrorist attacks in London?s financial centre are, "a matter of when, rather than if", will increase already serious concerns over issues of personal and business financial protection.
Mr Hart?s statement pointed out that, "if you want to hurt the government, hurt people at the same time, and you want to cause maximum disruption...where better to hit than at the financial centre?"
Mr Hart also echoed a report by the insurer Axa which warned that just under 50% of small firms do not have a plan in place to ensure that their business could survive should they be hit by an emergency or disaster.
Axa highlighted that many businesses, especially in the South East danger zone, are not even covered against general risks such as fire and flood, which have a much greater...
Term life insurance > Life Insurance Providing Little Protection from Terrorism
Long Term Care Insurance From A Solid Provider
Long Term Care Insurance From A Solid Provider
by: Ivon T. Hughes
Blue Cross Blue Shield of Michigan will start a new company that will offer long term care insurance policies beginning in July 2006 and concentrate on providing long-term care services to individuals.
The individual policies would include coverage for assisted living and nursing care but there would be no group coverage products available.
CHRONIC ILLNESSES CAN BE COVERED BY LONG TERM CARE INSURANCE
Unlike traditional medical insurance coverage, long term care coverage helps patients address chronic illnesses and disabilities that employer policies and Medicare don't cover. They usually include meals and help with daily activities such as bathing and getting dressed. This will help protect them as the average cost of nursing home care is more than $50,000 a year, according to the AARP.
U.S. Census data suggest that the population of people 65 and older will...
Long Term Care Insurance From A Solid Provider
Term life insurance > Long Term Care Insurance From A Solid Provider
Critical Illness Insurance Is Critical
Critical Illness Insurance Is Critical
by: Ivon T. Hughes
A difficult time in life can teach you what's really important. Just ask anyone whose life took a sharp turn when a medical problem was discovered.
First off there are expenses, a difficulty for any family but which are a special challenge for any family who are covered by a limited medical insurance policy or have no insurance at all.
If you have limited medical insurance, there is sometimes just not enough to pay the bills. You could have costs of staying near a clinic while hoping and praying that you will get well.
Some people have family members and friends who have started get well funds to help pay expsenses. But all of this doesn't answer why there was no critical illness insurance.
This Is Why Critical Illness Insurance Is Important
Critical illness insurance is important as what you are doing is insuring your income , just like you insure your house....
Critical Illness Insurance Is Critical
Term life insurance > Critical Illness Insurance Is Critical
How To Shop For Cheap Life Insurance
How To Shop For Cheap Life Insurance
by: Monty Loree
I'm going to explain to our readers how they can get cheap life insurance by shopping online.
If you've done any shopping for life insurance you know that prices for life insurance policies can fluctuate a great deal with different companies.
It turns out that life insurance are based on three basic factors.
AGE
HEALTH RISKS
ACTIVITY RISKS
START WITH STANDARD RATE:
Life insurance carriers start off with their standard rate for a person of your age.
Assuming that your health is perfect and there is no other risk associated with you, you'll get the same price as every one else who has perfect health and no risk associated with them.
NEXT STEP: TAKE A MEDICAL
A medical will tell the insurance company if you've got any serious health issues which could make you a higher risk, mortality wise.
FINALLY: RISKY ACTIVITIES
After...
How To Shop For Cheap Life Insurance
Term life insurance > How To Shop For Cheap Life Insurance
Common Mistakes To Avoid When Purchasing Term Life Insurance
Common Mistakes To Avoid When Purchasing Term Life Insurance
by: Mike Bell
When purchasing term life insurance, there are a number of factors to consider. Consumers should make certain they understand the concept of term life insurance and make purchases accordingly. Here are a few of the most common mistake people make when buying term life insurance policies:
1. Buying a term life insurance policy because it is inexpensive. While the price may be cheap, you must make sure that the policy will meet your life insurance needs.
2. Failing to realize that term life insurance is temporary. A term life insurance policy will only be in effect for a set period of time. After that time expires you will need to renew, and if your health has deteriorated in that time it may be very difficult for you to obtain another policy.
3. Purchasing life insurance from an unknown or unstable insurance company. If the insurance company you choose does...
Common Mistakes To Avoid When Purchasing Term Life Insurance
Term life insurance > Common Mistakes To Avoid When Purchasing Term Life Insurance
How To Decide Which Health Insurance Is Best!
How To Decide Which Health Insurance Is Best!
by: Ian Joan
There are so many numbers of insurance companies and they all have so many different plans for health insurance. Choosing a plan, which can be termed as best, is simply a tedious task. It is not as easy as it used to be. It?s true, but there are some points which can help us to decide which plan is going to be good for our health or our family?s health or for our employee?s health. If you are the owner of a business then you can easily know how costlier is it to take care of the health of your employees, since the prices of the health insurance are touching to the sky day by day.
Many people generally complain about the cost of providing health insurance to their employees and close relatives, but in fact majority of them does not even give time to select the insurance plan. They depend on their broker. If their broker says that this plan is good then they believes on his statement without...
How To Decide Which Health Insurance Is Best!
Term life insurance > How To Decide Which Health Insurance Is Best!
SQL Server 2000 Data Types
SQL Server 2000 Data Types
by: Chris Kemp
SQL Server requires that each variable and column in a table should be defined with respect to the type of data it will store. From a bit to a huge image and binary storage types, the allocation is supposed to help the user conform to the data required, and help the engine allocate space and processing speed efficiently.
Built-in data types
SQL Server 2000 recognizes the following built...
Term life insurance > SQL Server 2000 Data Types
Term life insurance The Life Insurance Policy and What You Need to Know Before You Buy
Useful Information About Homeowner Loans UK
Useful Information About Homeowner Loans UK
by: John Mussi
Homeowner loans UK are a very versatile type of personal loan that are offered to the owners of homes or real estate.
These loans use the value of the home or real estate to secure the loan for the homeowner, allowing for both a larger loan amount and often reduced interest rates.
Homeowner loans UK are a very popular type of loan among lenders, as they present more lender security than some...
Term life insurance mortgage calculator The Life Insurance Policy and What You Need to Know Before You Buy
Term life insurance > Useful Information About Homeowner Loans UK
Latest Trends In Fashion
Latest Trends In Fashion
by: Bridget Allen
Fashion is an incredibly fickle, but fashionistas of all ages still love it! However, this can be a quite confusing topic, as the must haves of last season should never see the light of day for this season. If you find yourself wondering what?s in and what?s out, you should be properly schooled in the latest trends in fashion. By far, the best resource for finding the latest fashion trends are the plethora of available...
Term life insurance
Term life insurance > Latest Trends In Fashion
Choosing A Diamond With 4 Cs
Choosing A Diamond With 4 Cs
by: George Williams
Diamonds ? girls? best friend! Why do girls love diamonds? Why are they so precious? Is it because of their beauty and exquisiteness? Talk about buying. Purchasing a diamond can test the nerves of even the most astute buyer - what do you look for? What do the terms mean? What makes one diamond worth more than another?
When you get in the diamond shop and attempt to buy one, but do not know what the different...
Term life insurance diamonds
Term life insurance > Choosing A Diamond With 4 Cs