Whole life insurance is an insurance policy that you keep for your whole life. Whatever the premium is at the time you take out the policy – based in part on the amount of coverage and your age – that premium remains constant for life.
With a term policy your coverage lasts for a certain number of years – the term of the policy – and then the policy expires and your coverage ends.
Initially term life insurance may seem like the better deal because you’ll initially pay a lower monthly premium for basically the same coverage as you’d get in a whole life policy. But at some point your term insurance will expire and then you’ll need to buy another policy with a new – and higher – age-based premium. The purchaser of a whole life policy, however, continues paying the same level premium for life.
While several things affect the cost of
Variable life insurance is life insurance that gives account flexibility for more risk-oriented policyholders and it provides permanent protection for them. It pays the death benefit to a named beneficiary and offers low-risk, tax-free cash buildup. It permits the death benefit to vary, with regards to the fund returns of the cash value account. It lets a policyholder borrow from the policy, during his lifetime. However, it does not offer any guarantee on the amount of cash value, during the policy holder?s lifetime. It offers no premium flexibility and no face amount flexibility.
Universal variable life insurance is a variable life insurance that gives more control on the cash value account policy features, than any other form of insurance. It does so by paying the death benefit to a named beneficiary and offering low risk tax deferred cash value option. Furthermore, it offers separate accounts for investing in money market, stock and bond funds. It offers premium flexibility and allows people to make withdrawals or borrow from the policy, during their lifetimes. It insists that if a contract is terminated in early years by
Families opt for a life insurance policy to provide security against calamities such as death, fire, or accidents. Such deals prove to be a safe way of protecting individuals by agreeing upon a certain amount prefixed by the insurer that would be paid in case of such unfortunate events. Insurance companies assist bereaved families by providing moral, financial, and emotional support. Life insurance is purchased by working employees, and by senior citizens too.
It is possible that a policyholder may not be able to pay the premium fixed due to financial constraints. In this case he would be forced to sell his policies to companies for cash back at a fixed percentage. Some companies may not offer the amount expected by a policyholder. Other companies may agree to pay face value of the policy. An application form has to be filled that includes the medical and policy information to dissolve such a policy and claim compensation.
At times, major companies that invest in buying policies at a lower rate than the purchase value may acquire large sums offered by insurance companies at the time of maturity. Various lenders or brokers, who bid for higher rates, may pay the customers only half the
Don’t let your search for affordable life insurance in the state of Connecticut make you vulnerable to fraud. If you are contacted to purchase a life insurance policy and then immediately sell it, think twice. You may be the target of an insurance fraud.
The National Association of Insurance Commissioners and the Connecticut Insurance Department want policyholders to be aware that the sale of life insurance policies are being perpetrated illegally.
A little background: Insurance companies provide for the selling of life insurance policies. There are two types of sales and they are called life settlements and viatical settlements.
o Life Settlement occurs when the owner of a life insurance policy sells it to a third party. The third party now becomes the owner/beneficiary of the policy. The new owner must pay the premiums and thus will collect the benefit when the original policy owner dies (as the original policy owner is still the ‘insured’).
o Viatical Settlement: Viatical settlement is similar to the life settlement, except the original policyholder is terminally ill.
Why, you may ask, would anyone sell his or her life insurance policy? There are many reasons; one of them being financial. If
Whichever way you look at life, life insurance is inevitably something we all need to think about purchasing. Whether you’re young or old, life insurance is important because while you might not be expecting to die anytime soon, life is unpredictable; and if you have dependents, you need to make sure they will be provided for in some way in the event of your death.
Hitherto, many people attribute their lack of life insurance to high cost. However, new research appears to suggest that the cost of life insurance premiums has decreased substantially over the past ten years. According to a study done by Barclays Life Insurance, living costs in the UK in the past decade have risen by 16%, but the price of average life insurance premiums has halved during the same period.
Mark Till, managing director of Barclays Insurance observed: “we all seem to remember our money going a lot further in the past than it does these days”. The main contributors to the higher cost of living in the UK include rising property prices, as well as increases in the price of petrol and tobacco; higher taxes and rising energy costs have also played a large part in pushing
My husband and I have made the decision to buy term life insurance. Why term insurance? It’s simple. Term life was developed to provide the average person with temporary coverage knowing the average person would be constrained by a limited budget. Term can be purchased in fairly large amounts for a relatively small premium payment when compared to other insurance types, making it very well suited for short-range goals. When they say temporary coverage they mean coverage for term lengths of 5 years, 10 years, 15 years, 20 years, 25 years and 30 years. When they say short-range goals they mean providing adequate insurance protection to cover the child-raising years.
Another part of the decision to go with term life insurance is that it is the simplest form of life insurance. I found enough to have to understand and think about with this uncomplicated insurance type and have no interest in having to take on anything more complex, like trying to leverage my insurance payments into an investment vehicle at the same time with cash benefits and payouts of differing amounts over varying amounts of time, depending on interest rate fluctuations and so on and so forth. Those are investment thoughts