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1/5/2009
Monday morning
This topic is closed off and you will be taken directly to the website.
Topics taken from open source list. I hope you find this useful.
This site is for our clients only as an information resource.
| 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. |
| Disadvantages
* Much more expensive than term life. You have a much smaller death
benefit for the same amount of coverage.
* Even though you may borrow your cash value, it is really
disadvantageous to do so because your policy loans will result in
interest charges and may reduce your death protection unless you repay the
loan. * The investments in your policy may realize a rate of return far
below investments made separately from a life insurance policy. |
| Traditional Whole Life, is the original cash-value policy. The insurance
stays in force as long as you pay your premium, i.e., it is permanent. The
premium you pay is fixed and depends on your age when you buy the
insurance. The insurance company will invest your premiums and you can
borrow from the cash value built up if you so wish at a favorable rate of
interest. |
| 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. |
| Term Insurance
Term insurance is the purest form of life insurance, consisting only of a
death benefit without the frills. It is for a fixed term varying from
one to 20 years, after which it must be renewed. If you die during the
term, your benefits are paid to your beneficiaries. Term life insurance
premiums are cheaper compared to whole life which makes it possible for you
to afford more coverage with the same amount of premium. |
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