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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.
| 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. |
| Disadvantages
* It is not permanent
* You may not be able to renew it above a certain age, e.g., above 70
years in some states. However, this may not necessarily be
disadvantageous since you may not need life insurance at that age because
your dependents will most probably have been able to establish on their own
by then. |
| 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. |
| To pick a life insurance policy that is best suited for you, you should
consider the advantages and disadvantages and relate them to your
particular situation. However, if you are the breadwinner of a young
family with limited resources (which is true of most young families), you
will most probably be better off with term life because you will be able to
afford a greater amount of death coverag e for the same amount of premium.
On the other hand, if for any reason you want coverage throughout your life
or for more than 20 years (e.g., because of health reasons or for estate
planning purposes), then a whole life policy may be your best bet. |
| Should it include the baby, the high school student, the college student,
the young couple just starting out, the couple with a growing family, or
the older couple whose kids have all moved out? Everyone should have life
insurance because some expenses will be incurred in the passing away of
anyone, even a baby, such as funeral expenses. For everyone to have life
insurance, however, is an ideal situation. On a more practical basis, you
should have life insurance if you are a breadwinner of your family in order
to protect your d ones from financial difficulties arising from loss of
income that will result from your premature death. |
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