Question : What are the different types of life insurance? What are the pros and cons of both?
Which life insurance companies do you recommend? How young is too young for your child? He's 1... I'd like to leave my family with the security and without the stress of "money" when I die, but I don't know where to start. Thank you in advance!
- asked by Love my curves! Whoa!
All Answers:
Answer #1
Well, there's term life, and whole life. Term lifehas alot of restrictions and is more expensive theolder you get. Whole life can be paid in full andborrowed against, and the younger you are the morecoverage you can get. As far as your child, Iheard about Gerbers putting out a whole lifeprogram for kids under 12 on Cartoon Network watchit they play the commercial alot. Hope this helps.
- answered by darthdubious_1
Answer #2
It is never too soon to get life insurance for youor your loved ones. Get some now!!! LifeInsurance Companies are all different, but one ofthe main things is to make sure they have a goodfinancial stability rating (you should ask themwhat theirs is) You will want to get an A orbetter. That means they are financially stable,among other things.Term insurance means exactlywhat it says, it is for a term, or a length oftime. You can get term insurance for 5 years, 10years, 15 years, or 20 years, etc. Terminsurance is very inexpensive (younger ages getcheaper insurance). It does not build cash value,and after the term runs out (the 10 or 20 yearsthat you chose) then the premium significantlyincreases. If you are just starting out with achild, whether you are single or married, and youdon't have a whole lot of extra money to pay thepremium, term life would definitely be a benefitfor you. It gets you good insurance (you pick howmuch $50,000 $100,000 $150,000) for a term (10 or20 years) for a cheap monthly premium. Again, theterm that you choose will eventually run out, soyou will want to convert your policy within thattime before it runs out, but if something were tohappen to you during the 10 or 20 years, you wouldhave something to give to your family for burialexpenses, and for financial support.Whole lifenever runs out, it is not for a term, it is infact just what it says for your whole life. It ismore expensive, but you are locked into thepremium rate when you take it out. (So again,buying it while you are young, you will get abetter rate). Whole life does build cashvalue.Regardless of which one you choose, the mainkey is to make sure you have some now. Get apolicy soon if you don't have one. Lifeinsurance is medically underwritten (mostcompanies anyway) so they will want a medical examwhere they come to your house and draw blood and aurine sample to make sure that you don't have HIVor diabetes, and that everything looks good on thelab results. (Obviously your 1 yr old probablywon't need one, but you will) Once your policy isissued, you can then think about replacing it witha different policy at a later time.You may think,well I will put it off until next week to applyfor it, but then something happens to you, forexample you end up with cancer. Then, chancesare, you won't be eligible for life insurance andyou won't have a policy when you need it.So, buyit now!!! Talk to a couple of different lifeinsurance agents if you want, and get some moreinformation, but definitely don't wait. Any lifeinsurance is better than no life insurance.
- answered by shopgirlz2
Answer #3
I don't have time to fully answer this...but;Whole Live, Variable Annuities and packagesusing their basic principles are sold incorrectlyand usually to the people that need themleast.Banks and Insurance Companies are the worstplace to go for investments/growth of yourcapital.Buy Term Life (Life Certain, in my opinionis best).
- answered by Common Sense
Answer #4
There are more than two. You need to define thegoals that you want the insurance policy toaccomplish, then sit down with a LOCAL AGENT toreview your options. I don't insure children'slives. It's a waste of money.Usually, terminsurance is the best fit for most people's needs- but not ALL people's needs.
- answered by mbrcatz17
Answer #5
There are several top-rated life isnurancecompanies including Northwestern Mutual,Prudential, Metlife, Banner Life and LibertyLife.There are two basic types of life insurance -Term and Permanent (Whole) Life.Term lifeinsurance is designed to help people buy lifeinsurance protection they need when they can'tafford to purchase all permanent insurance, orwhen they only need life insurance protection fora specific period of time. Term insurance providesyou with a guaranteed death benefit, but no cashvalue. The life insurance premiums will increaseat pre-determined intervals such as 1 year, 5years, 10 years or 20 years. This depends on thetype of term life policy you select. A term lifepolicy is often the choice when your lifeinsurance protection needs are higher for a periodof time, then drop down to lower levels in lateryears, such as when your family is growing. Terminsurance can also be an effective way to providesupplemental coverage in addition to permanentinsurance during years you need higher levels ofprotection, such as when your family and otherfinancial responsibilities are beyond your currentincome. In these situations, term coverage allowsyou to purchase important death benefit protectionwithout going beyond your budget. Also, if thecoverage is convertible (the coverage can be"converted" to a comparable permanent lifeinsurance policy, without the need to provideevidence of insurability), you can get thecoverage you need today — with the ability topurchase permanent insurance coverage in thefuture. The Real Cost of Term Life InsuranceHowever, term insurance has its disadvantages. Itisn’t right under all circumstances. Among itsdrawbacks, be sure to note the following: You dohave to "die to be paid." As unpleasant as thatsounds, it's true. Term life insurance provides adeath benefit only, for a specific period of time.So, if you outlive your policy period, there is nopayout to your beneficiaries. When the termcoverage expires, your protection ends, too. And,if you stop paying your life insurance premiums,the coverage ends. Period. Here’s an example foryou - Let's say you own a $250,000 term lifeinsurance policy. You've kept the coverage inforce for twenty years, and the policy expires atmidnight on June 30. If you die at 11:59 p.m. onJune 30, your beneficiary receives the full$250,000 in death benefit proceeds. However, ifyou die at 12:01 a.m. on July 1, your beneficiaryreceives nothing under the term insurance policy,since the policy has expired. Purchasing terminsurance is often compared to renting anapartment. When you rent, you get the full andimmediate use of the apartment and all that goeswith it, but only for as long as you continuepaying your rent. As soon as your lease expires,you must leave your apartment. Even if you rentedthe apartment for 10 years, you have no "equity"or cash value that belongs to you. There is theVery Real Risk of becoming uninsurable when theterm insurance coverage expires. While many termpolicies are convertible to permanent insurancecoverage, others may not be. And, even if the termpolicy is convertible, there are time limits. Ifthe policy is allowed to expire, you may berequired to re-apply for life insurance coverage,and prove insurability by taking a medical exam.If you are found to be uninsurable at that time,you will be without life insurance coverage. Sincepremiums increase at each renewal, the long-termcost of term can be very costly. Many people buyterm insurance coverage when they are in their 20sor 30s because it appears more affordable whencompared to a cash value or permanent lifeinsurance policy with the same death benefitamount. By the time they're in their 40s or 50s,the coverage seems a little more expensive, as therate goes up. In their 50s, the cost may becomparable to the cost of permanent coverage.Finally, in their 60s, if not sooner, they maydecide to drop the policy — not because they nolonger need the protection, but because theyusually can't afford it. However, the person whopaid more for a permanent life insurance policy intheir 20s may still be paying the same premium.That's why the term policy's conversion privilegeis so important. This valuable feature is usuallyavailable in the first few years of the policy,and allows you to convert to permanent insurancewithout submitting evidence of insurability.Converting to a permanent policy lets you "lockin" a fixed premium, and your life insurancecoverage can never be canceled, provided you payyour life insurance premiums. The Value ofPermanent Life Insurance Cash value or Permanentlife insurance is often the best long termsolution for many people. The reasons: Permanentlife insurance provides you with lifetimeinsurance protection, provided you pay yourpremiums. Usually, once you’ve been approved forcoverage, your policy cannot be canceled by theinsurer. Regardless of your health, the insurancewill remain in force. Despite higher initialpremiums, permanent life insurance can be lessexpensive than term life insurance in the longrun. Many permanent life insurance policies areeligible for dividends, which are not guaranteed,if and when they are declared by the insurancecompany. Many companies offer the option to applycurrent and accumulated dividend values towardspayment of all or part of your life insurancepremiums. If dividend values are sufficient,out-of-pocket premium payments may be reducedafter several years, yet coverage continues foryour entire life. So, while life insurancepremiums must be paid under both, the permanentand term life insurance plans, long-termout-of-pocket cost of permanent insurance may belower compared to the total cost for a term lifeinsurance policy. Permanent insurance caneliminate the potential problem of futureinsurability. Cash value life insurance policiesdo not expire after a certain period of time. And,some policies contain guaranteed purchase options,which allow you to buy additional life insurancecoverage at specified times, regardless of yourhealth. Cash Value Life Insurance builds cashvalue within the policy. This amount, part ofwhich is guaranteed under many policies, can beused in the future for any purpose you wish. Ifyou choose, you can borrow cash value for a downpayment on a home, to help pay for your children'scollege education, or to provide income for yourretirement. (Note: Borrowing cash value from yourpermanent life insurance policy requires thepayment of loan interest and will affect yourtotal policy values.) Also, if you decide to stoppaying premiums and surrender or cancel yourpermanent insurance policy, the guaranteed policyvalues are yours. When purchasing life insurancecoverage — renewing or converting a term policy— look at more than just the premium. Considerthe financial rating of the insurance company.Consider your long term goals and needs forprotection. A professional insurance agent candiscuss your life insurance goals, analyze yourinsurance needs and review the pros and cons ofthe various life insurance policy optionsavailable. You can compare free quotes for termlife insurance online through Efinancial, theyhave offered life insurance quotes online since2001. You just fill out one form and get up to 12Instant Quotes for term life insurance fromtop-rated insurers with no obligation. To get yourfree quotes visithttps://www.efinancial.com/smartquoteefc.aspx?source=389-707I hope that helps! Best of luck to you.
- answered by Hadley
Answer #6
There is not a simple answer to your question thatwill be adequately informative. You should meetwith a few different independent insurance brokersto get multiple perspectives. A littlecompetition usually turns out better for you.Threeglaring mistakes mentioned in the above answers:1. There are more than two types of life insurance. I could name 7 without trying.2. Just because youbuy a permanent policy and pay premiums onschedule does not mean that you will be |
measure and fulfill your financial needs