Life InsuranceThere are two basic types of life insurance, term and whole life. Term Insurance Term Insurance is insurance where you pay the premiums and the insurance stays in force as long as you pay. If you die when the policy is in force, a set amount of money is paid to your beneficiary. Term insurance is relatively cheap and the cheapest of the life insurance options. Term insurance is packaged in different ways with some premiums increasing annually and others increasing in five or ten year periods. Some may even call for you to pass another physical at some point. Some if not all will not insure you after you reach a certain age, possibly 70 or 80. Also insurable amounts may decrease as you get older. There are two types of term insurance. Decreasing term – the premium stays the same but the value of the policy decreases as you age. Level term – the value of the policy stays the same but the premium increases as you age. Below is an example of rates for 10 year term life insurance that show you how rates increase in 10 year age based increments. The payment is shown as a monthly amount and only representative of an actual quote. $250,000 10 Year Term25 years old $9.79 30 years old $9.7940 years old $11.4650 years old $23.7560 years old $55.21 Whole Life (Cash Value, Universal Life, Variable Life, Ordinary Life, Permanent Insurance) Whole life is term insurance with a savings account attached to it. The same amount of coverage will cost three to four times more than term insurance. Whole life comes in many variations with varying names. The cash value of a whole life policy (the savings) is not paid at death. The high cost of whole life insurance may force you to under-insure yourself. You do not want to purchase whole life insurance. If you already have whole life insurance, you should find the best value in term life insurance and then cash out your whole life insurance. Life Insurance Tips If you are out of debt and have invested for retirement, then life insurance should become unnecessary at some point in your life. You should reach a point where the income from your investments would provide an income for those that depend on your income. Do not buy life insurance as an investment. If you want to invest money then invest in mutual funds with an investment company. Only buy the amount of life insurance that you need and make sure that you get enough. Since you have put together a monthly budget, you should be able to figure out how much those you leave behind will need. Do no allow a commissioned salesperson to tell you how much or what kind of life insurance you need. You are not stuck with a whole life insurance policy if you have one. You can cash it out or roll any value in it over to a term policy. Research the company that you are depending on for your life insurance needs. Life insurance is available from many companies and often through your workplace. Look around for the best company and value. Children do not need life insurance. Once they have an income and others depending on their income they can get life insurance. Never cancel an insurance policy until you have another policy in place. Shop around and get several quotes and then check how the companies with the best quotes rate in the insurance industry. I have used NetQuote to get life insurance quotes for my families life insurance needs. Get a life insurance quote from NetQuote. I've just recently changed my life insurance after getting a quote through NetQuote. You can look at insurance company ratings at AmBest.com.
|
