| Universal Life, differs from the traditional whole life by investing the
premiums in fixed-income securities that provide better rates than the
traditional whole life. You can choose to use the accumulated cash to buy
more death coverage or to pay the annual premiums, or both. |
| After deciding on the type of life insurance that is best for you and how
much insurance you need, the final step is to shop around for a good
policy. The best way to do this is most probably through a group policy.
If you belong to any professional organizations or groups, check if they
have a group life insurance program. If you cant go through that route,
then call up a couple of insurance agents (you can get numbers from the
phone book or from newspaper adverts). Ask them for quotes, do a
comparison, and then decide your best option based on the price and
financial rating of the insurance company. You can also get life insurance
information from the internet (e.g., http://www.insure.com) or through
brokers that provide quotes from different insurance companies. You should
also check about the life insurance benefit at your place of work. Most
organizations have a life insurance benefit in place that is bundled with
health insurance. The typical coverage from work place insur. |
| Should you have life insurance?
Who should get life insurance?
What type of life insurance should you have?
Which type of insurance should you pick?
How much life insurance do you need? and
How can you shop for life insurance? |
| Many, many financial types will advise you that whole life policies are
bad news for most people. Only you will know the insurance options
that will make you feel comfortable, but you need to make sure you
evaluate all your options. Please consult a disinterested financial
adviser before making your final decision. My comments below are
strictly my own opinion. |
| Whole life insurance protects you throughout your whole life, i.e., it is
permanent. The insurance is also structured to include some form of
savings or investment feature in addition to the life insurance policy.
Because it is permanent and includes an investment feature, it is much more
expensive than term life for the same amount of coverage. There are many
types of whole life; the differences are mainly in the way your premiums
are invested to build up a cash value. The three basic types are the
traditional whole life, universal life, and variable life, though other
varieties like the variable universal life and interest sensitive whole
life exist. The three basic types are described below. |
