Insurance Whiz » Life Insurance

Term vs. Whole Life Insurance – General Information

Insurance Whiz — Mon, 30 Nov 2009 00:37:54 +0000

Quite a few people have no idea what you mean when it comes to term vs. whole life insurance. Term life insurance is defined as temporary insurance. You pay a premium annually, which covers the company’s risk should you die during that year. Term life does not have cash value. Term only pays out for the insurer’s death as long as the policy has not expired. Generally, the beneficiary receives the policy’s death benefit.

Whole life insurance is meant to be in force your entire life. Generally, whole life premiums stay the same throughout the life of the policy. These policies build cash values, which usually make their premiums higher than with a term policy. You can get policy benefits through surrenders or loans. Whole life policies typically mature when you reach your 100th birthday. In addition, in the competition between term life insurance vs. whole life insurance, whole will usually build interest over time and can add to the value of your policy. Term insurance vs. whole life insurance can be a little special to understand. Knowing the difference will help you get the best insurance for your specific needs.

At this point, you may be wondering what do you actually need; term or whole life insurance. How do you choose a plan? Look at what your needs will be long term for a policy. Maybe you are just starting out and just want some life insurance coverage for 10 to 20 years or so; then term life should take care of that. On the other side, if you need a savings plan that is an investment over a lifetime, the whole life policy is the option for you. We can just say that there is a term life insurance vs. whole life insurance battle of sorts.

It probably does not need mentioning, but there is a difference when it comes to the cost of a term life insurance policy vs. a whole life insurance policy. Make sure that when you are searching for a policy that you figure out the amount of money you can spend on premium payments. More often than not, term insurance is going to be much lower when it comes to cost than premiums for a whole life policy. Since term policies will not compound any interest and therefore have no value, they usually have cheaper premiums.

Those in the know have been debating back and forth about term vs. whole life as to which policy is the better choice for the policyholder. Where do the barriers lie in terms of financial gains between term life vs. whole life insurance? Many financial advisers are all for buying a whole life policy because it builds value throughout the course of life. Others are of the mindset that by investing you will get a much better return than by anticipating interest gains on a purchased whole life insurance policy.

Understanding The Difference Between Term Life Vs. Whole Life Insurance

Insurance Whiz — Fri, 27 Nov 2009 22:53:18 +0000

When investigating life insurance to find a policy that best fits an individual’s needs, it becomes quickly apparent that the researcher needs to understand the differences between term life vs. whole life insurance policies. There are further subcategories below both of these types, but just understanding the difference between them can go a long way towards finding the best policy. A reputable insurance agent will probably offer both kinds of coverage and can further clarify any regulations on term life insurance vs. whole life insurance.

First, consider the coverage provided by a whole life insurance policy. This policy is designed to be held for your entire life. Initially whole life will have a higher yearly premium than term life because the company is taking the money and investing it in a kind of savings account. Once the savings account is accruing interest yearly premiums will go down until eventually they could overtake the premiums and nothing would be owed for the year, even though the coverage remains in place. This sounds like a great idea, but usually the company only pays out a small amount of interest for the money saved and it would take a long time to see much of any real benefit, so the serious investor would do better to invest the money on their own.

Two variations of whole life insurance are universal and variable policies. According to a universal life insurance policy if the company accrues large gains on the policy holder’s money during that year they would pass gains on to the policy holders. With a variable life insurance policy, the money is invested in accounts that look like mutual funds and the policy holder determines what accounts they want to invest. However, with any investment that offers possibility for great gains, there is also a greater risk taken. During the years that the funds or the life insurance company does not do very well the individual policy holder can owe more than budgeted.

There are other options available though, under the category of term life insurance. Term life policies cover the insured for a determined length of time while they are actively paying the premiums, after which benefits expire. Variations on term life policies typically involve what kind of a term they are set up to cover. When an individual is young and in good health, they can purchase a level term policy that will have the same premium and death benefit rate for up to 20 years. An annual renewable term life insurance would come up for renewal each year and will have steady rate increases. To combat raising premium costs decreasing term life insurance can be selected. It will pay out less as the policyholder ages with the expectation that financial obligations go down as you enter retirement.

When considering term life vs. whole life insurance plans keep in mind the length of benefit as well as premium costs, current health and the death benefit needs of the beneficiary. There are many pros and cons to either term or whole life insurance, and they would both be a huge benefit to a person under different circumstances.

Guaranteed Term Life Insurance

Insurance Whiz — Tue, 17 Nov 2009 12:17:56 +0000

If you are concerned about fluctuating costs of life insurance because of an unpredictable market place economy, then you should consider purchasing guaranteed term life insurance. Term life insurance is an inexpensive method of ensuring maximum life insurance coverage over a predetermined amount of time. It allows individuals to determine the length of the agreement, or term, and to make regular payments within that period of time. A guaranteed term insurance policy, also known as a guaranteed level term life insurance policy, is one in which the insurance premiums are guaranteed to remain stable, and not increase within that allotted number of years. Frequently term life insurance can be converted to a permanent plan once the term has expired, although regulations governing these types of conversions should be discussed by individuals with their insurance brokers, since they can vary by company.

When searching for life insurance options, just making one’s way through the specifics of each policy title can be both discouraging and confusing. It is important to know the facts, and to understand the implications of the varying types of term life insurance, in order to ensure that the most appropriate coverage is selected. The following paragraphs will help to define some of these tricky titles, which can so often lead to confusion and mis-communication.

There are a number of different types of term life insurance coverage from which to choose. As discussed above, guaranteed term of level ensures a steady and unchanging premium over the course of the term. This insurance type is not to be confused with annual renewable term coverage, which must be renewed by the policy holder on an annual basis. It implies that the premiums paid during the course of that year will remain stable, but once the term is up for renewal, the premiums may be increased.

Guaranteed acceptance term life insurance and guaranteed issue term life insurance are two additional titles, which can lead to confusion, but have essentially the same function. They are the option frequently chosen by people who have a difficult time ensuring other permanent coverage options due to their age, occupation, or medical history. This type of insurance is issued without the requirement of a detailed background or medical check. Frequently, because of the higher risk being taken by the insurer, guaranteed issue or acceptance policies often have higher premiums, clauses about the issuance of funds written into the contracts, caps and conditions on the amount of money to be released if the covered individual passes, and even age limits. These specifications are not always made obvious to individuals about to enter into such an agreement, and should be brought up with the issuing insurance company or broker before any contract are signed. It is important to understand that guaranteed issue and acceptance policies are frequently intended to cover the basic costs involved with a family death, such as funeral and burial arrangements.

Clearly, there are titles and conditions abounding for minutely differing types of life insurance. Be sure to have a clear understanding of the above-defined terms, and know exactly what you require in a policy when choosing your guaranteed term life insurance plan.

The Term Life Insurance vs Whole Life Insurance Debate

Insurance Whiz — Tue, 10 Nov 2009 00:09:13 +0000

Are you confused about the differences between term life insurance vs. whole life insurance? The words term vs. whole life insurance get thrown around when you are searching for life insurance policies. Has anyone figured out that the person looking to buy or that is actually buying the policy may not have the first clue as to the difference between the two? Term insurance vs. whole life insurance is actually not that difficult to understand. Once you know the difference, you will be able to quickly weigh your options and pick out the best insurance plan for your needs.

First, break out the terms and the meanings of term life vs. whole life insurance. Term life insurance is life insurance coverage that is paid for a specified period. With term life, you will get a guaranteed amount that will be paid out in the event of death. Just pay your premium and you are covered. Just to be clear, this policy does not build any cash value. Next, we have whole life insurance. This is also life insurance paid over a specified period. The difference is that with whole life insurance, a percentage of the premium payments are invested by the insurer. Based upon the amount that is invested, in the event that the policyholder does not die before that specific period expires, a payout is available from the whole life policy. Yes, whole life is an investment.

Now, you are wondering if you need term or whole life insurance. Which should you choose? Evaluate what your long term needs are for the policy. If you are looking for some life insurance coverage for the next 10 to 20 years, the term life insurance policy will take care of those needs. On the other hand, if you were looking for a savings plan and an investment means, the whole life policy would be a better option for you in the term life insurance vs. whole life insurance battle.

Of course, there is a difference in cost between the two types of policies; term life insurance vs. whole life insurance. While you are searching for a policy, determine how much money you are willing to spend or can afford to spend on your premiums. Generally, term insurance is much lower in cost than whole life. Term insurance does not build any value so that is why it is usually cheaper.

There has been a debate as to which is better in terms of finances between term life vs. whole life insurance. Many financial advisers recommend purchasing the whole life policy because of the value that it builds and cash pay out benefit. Others think that the variance in cost that is saved by purchasing the term life insurance vs. whole life insurance could be invested. They believe that by doing that, a much better return could be earned than the financial gains from the whole life insurance policy. The debate goes on.

Is Joint Term Life Insurance For You?

Insurance Whiz — Sat, 07 Nov 2009 00:58:58 +0000

Joint term life insurance is one of the least expensive ways to protect a family in case of an unexpected death. Couples, families with children, and even business partners will opt to enter into a joint life insurance plan to help save costs over several individual life insurance plans, and for simplicity reasons. Life insurance is a simple way to give your family the peace of mind that there is something there to help take the financial burden off of them in case something happens to you.

There are several different types of joint life insurance policies available to everyone. Typically a joint term life insurance policy pays out only once upon the first death of those it covers. It is also known as a first to die life insurance. This is a great option for families who survive on two incomes as it will help pay the day to day bills of the parent and children who are left behind. This is also a great policy type for retired couples or couples without children as it will allow the surviving spouse to make mortgage payments, or make their retirement without you easier financially.

Another form of a joint term life insurance policy is one that is made payable only upon the death of both of the policy holders. This type of joint life insurance policy tends to have slightly cheaper premiums because of how long payouts usually take place. Statistically speaking policy that pays out upon the first death will pay out much earlier than after the death of both policy holders. This allows the insurance companies to see a greater profit and thus give customers lower monthly payments.

Something to think about in terms of additions to a joint term life is the terms. Commonly the terms of most policies are 10 or 20 year terms. If your insurance needs are for the short term, then you may want to look at a 10 year term policy. Most often these 10 year policies are renewable if your insurance needs change during the 10 year term. For longer term insurance needs, a 20 year term will be the best choice, both in cost and because they can be renewable after certain age or may be able to be converted to whole life insurance at the end of that term.

One thing that is important are the options you have when purchasing your policy. If your family has a history of health problems like cancer you can opt to have the policy pay out if you become too sick to work. While options like this do increase the premiums of the policy if you or your partner has been recently diagnosed with a life threatening medical condition you will want to have the peace of mind your family will be cared for financially.

Joint term life insurance is an important investment to make sure your family is protected financially is something happens to you or your spouse. This peace of mind will be one less thing you have to worry about in case something traumatic happens to you or your family when someone unexpectedly passes away or falls ill.

Online Life Insurance Quotes

Insurance Whiz — Sat, 07 Nov 2009 00:05:10 +0000

Are you looking for more information on finding online life insurance quotes? Ever try to figure out term life insurance quotes online compared to online whole life insurance quotes? These terms are thrown back and forth when you search for a life insurance quote online. It is entirely possible that no one has put together that the person needing to buy the policy may not know what the difference is between him and her. The options are not that hard to grasp. Free online life insurance quotes make searching so simple. Once you are clear on the facts, get a life insurance online quote. That will create the ability to quickly weigh options and snatch up the best insurance policy for your lifestyle.

Term life is life insurance coverage that is temporary. There are installments for a set period. In general, term life will give the guaranteed face policy amount in the event of death. Keep your payments current and you will be consistently covered. Just for clarification, a term policy does not offer the opportunity to stack cash value. Next option, whole life insurance. This particular life insurance is considered to last your entire life without terms. With whole life insurance, the policyholder invests a percentage of the premium payments. With whatever amount that is invested, in the event the policyholder does not die before that specified time period’s expiration, a payout would be available payable by the insurance company.

Are you in deep thought as to which you should choose? The first decision would be to determine what any long term needs will be for the policy. If you are only concerned about having some life insurance coverage for the next 10 years or so, term is what you should probably consider. It is renewable after the term, although the premiums generally go up. On the other side of that, if you are a saver and investment options are important to you, the whole life policy is an option you should check out. Do this for yourself or other(s).

You should expect that there is a difference in cost for term life insurance vs. whole life insurance plans. During your online search for a policy, be sure you are aware of how much money you can spend or what you consider to be affordable to spend on your premiums, whether they are monthly or annually. It is typical for term coverage to be a lower cost policy than whole life.

Getting online life insurance quotes will save you in many ways. Analysts have a debate going on about term compared to whole insurance. Which plan is better in terms of a family’s finances? Many advisers recommend purchasing the whole due to the value that it builds and cash option. Others think the variance in cost saved by having a term life could easily be invested. Their theory is that by investing the savings, the returns earned could be significant compared to the whole policy. Their split continues.

Receiving A Term Life Quote

Insurance Whiz — Wed, 04 Nov 2009 20:29:58 +0000

Are you looking to receive a term life quote? There are all kinds of life insurance policies including term life. In general, term life quotes are cheaper than other policies. Because of the many options available, it is quite possible to get an affordable term life insurance quote.

Decide on a term that is perfect for your needs. This will sound a little strange, but a term life insurance quote is calculated for the specified number of years that you anticipate living. The term life insurance price quote will be cheaper if you pick the lowest number of years available. Think about this, if you purchase $100,000 in coverage for 20 years, you will have to renew your policy if you want to keep it. Decide what your needs are and then compare various quotes for amounts that are a bit higher than that amount. Sometimes by doing this, you may actually find that the quotes are not that much higher if you go with the larger amount. Take as much time as you need to understand the policy terms.

Go for quotes with guaranteed rates. They will preserve your premiums without an increase. By getting the best term life insurance quote with guaranteed rates, you will avoid renewals that increase annually. If given the option, make your payments on an annual basis. This generally saves you some money on the rates over the term of the policy.

Be certain that you understand the details of your term life policy. Most people make the big mistake of buying a policy they do not have a clue about. It may sound ridiculous, but make sure the insurance quote specifies exactly what causes of death will qualify for a payout from the insurer and which causes of death do not. This is very important and you should be very clear on this.

Look into purchasing a term policy that can be converted. This is important because many term life insurance policies only extend to 30 years. That means someone in their 20’s could have a policy that will end in their 50’s. In this instance, if you have a convertible policy, you will be able to change it to a whole life insurance policy. You are going to be looking at higher annual premiums but they should still be more affordable than if you purchased a very new policy. When you buy a term life insurance policy that is renewable, you can renew the policy without the insurance company requiring you to take a medical exam.

The key to getting the best term life quote is to comparison shop. Rates for term life insurance vary from insurance company to insurance company. Do the legwork! Utilize the internet search engines to find the best term life insurance rates. Numerous insurance companies will compete for your policy business. Always base your comparisons on like features when doing your search. The internet will give you an advantage and save time.

Life Insurance Cost

Insurance Whiz — Sun, 01 Nov 2009 13:22:58 +0000

To many, the idea of a life insurance cost may seem an unnecessary annual investment, or money more effectively spent elsewhere and to be fair, is not absolutely necessary for every individual. It is important, however, to consider the benefits that a life insurance policy may have to offer, before discounting the idea entirely. Life insurance ensures the financial security of family members and loved ones in the event of unexpected or premature death. Individuals that would benefit from such a plan include those who have recently started families or have other dependents, and have not yet accrued any substantial savings or equity.

Once having determined that life insurance is a priority, comparisons in pricing and types of insurance should be the next step. The following will discuss the differences in price, and advantages and disadvantages of several types of life insurance that can be purchased by individuals, including term, whole, and universal life insurance.

Term life insurance cost factors may include the following: A subject’s age and medical history, and the desired size of payment to selected beneficiaries in the case of death. The cost of term life insurance can also vary depending on the plan that is selected. Low cost term life insurance is most frequently attained in shorter-term policies, such as annual renewable terms. Although at face value this may seem the most cost-effective option, since during the given term an individual may pay a lower premium than with a longer term agreement, once the term is up for renewal, the rate of the previous year’s term is no longer guaranteed, and could potentially increase considerably. A more cautious option to take would be a guaranteed level premium term plan. These plans are for a longer period of time, and guarantee that the premium being paid will not increase during the course of the contract. In order to ensure these guaranteed levels, the premiums will often be higher than in shorter-term contracts.

Whole life insurance cost is set by the insurance company, based on the following factors: The premium is applied towards a fixed pay-out to beneficiaries in the case of death, while the surplus is put, by the insurance company, into an investment fund, which is tax-deferred as long as the policy is maintained. Eventually the insured will have the option of withdrawing said surplus, with the accrued interest, as they might with a savings account, in order to apply it towards their retirement.

In contrast to whole life, universal life insurance cost is determined by the insured, as is the amount to be paid out in the case of death. Interest rates on investments fluctuate more frequently in this case, as they pay a market rate of return instead of being adjusted on an annual basis, and will be higher or lower depending on the state of the market at any given time.

When researching life insurance cost, be sure to consider the length of the life insurance term, as well as the desired level of payment to beneficiaries and stability in interest rates.

The Difference Between Term and Whole Life Insurance

Insurance Whiz — Sat, 31 Oct 2009 23:56:19 +0000

The assumption can be made that there are plenty of people walking around with no idea what the difference between term and whole life insurance is. Many people who look into getting life insurance will think term life insurance. Actually, just as many, if not more will look at buying whole life insurance. The major difference between term life and whole life insurance is one has a set term and the other is considered permanent (having a cash/investing component that can actually be used as a loan). Most of the term life companies offer terms like 10 to 30 years. At the end of the set term, the policy will expire. At this point, get a whole life plan or just renew the term. If you plan to renew, your policy rates will most likely increase.

Term life insurance vs. whole life insurance is a very important piece of a family’s financial portfolio. For most, term life insurance is a building block of comfort. Whole life insurance is the actual foundation. Life insurance allows the family members that are left behind to maintain their lives after a devastating death in the family. It is critical to families that do not have multiple incomes. Beneficiaries have varied needs and at that point, the difference between whole life and term insurance is not very important. For them, knowing that an insurance payout is on its way eases the stress of taking care of their loved one’s burial services and final expenses.

With regard to whole life insurance, some may be unclear on some specifics. When cash values become insufficient, policies lapse. Whole policies build cash value via an investment component, but policy owners need to be sure they understand all of the components that make up the build of their policy. The cash value portion supplements the policyholder’s premiums in the future. If the cash value is taken for whatever purpose and the policy holder decides to or does not have time to replace it, at some point they are going to need funding added to keep the policy active.

The bottom line is that the difference between term and whole life insurance is pretty straightforward. Both can offer good protection for your family if you pass on. It is up to you as to which policy you should buy. Ultimately, make your premium payments so that your policy stays active. Either insurance policy is going to pay benefits to the surviving beneficiary when the policyholder dies. Each of these types of insurance will take care of the ones you leave behind as long as it is in force at that time. Life insurance is significant to your financial package. Always check into the policy face value options that are available. Never forget that there are people or even a person that you love depending on you if you should die. If you leave them without the benefits from your life insurance, it may be like watching a sinking ship. Do not wait; decide and purchase a policy that fits your family protection plan.

Finding Inexpensive Auto Insurance

Insurance Whiz — Thu, 29 Oct 2009 13:48:37 +0000

Locating quality inexpensive auto insurance is as easy and convenient as using the internet. One of the best ways to choose the insurance is via internet quotes. There are a number of websites that provide a vast number of auto insurance quotes for free. You can simply choose your preferred coverage options and a list of companies and the applicable quotes will be provided. When looking for the lowest auto insurance you should utilize a number of methods to obtain reduced rates. From locating the cheapest quote to properly accessing your insurance needs, being informed about your insurance options will make your better prepared to find the best auto insurance for you.

Selecting inexpensive auto insurance quotes is fairly simple; choosing the coverage options that give you the most for your money requires more work. There are a number of coverage options when seeking car insurance. It is required that every driver at least hold liability car insurance. Liability car insurance protects other people in case of an accident. This is the cheapest insurance option and is most preferred for cars that are paid in full or older model cars. Collision insurance coverage is also available and costs a bit more because it protects the driver and the driver’s car against damages. Comprehensive auto insurance coverage includes liability, collision and other additional coverage options such as payment for damage to a vehicle as a result of theft or natural disaster such as lightening. Comprehensive auto insurance coverage is the most expensive coverage because of all the miscellaneous coverage options. Not everyone needs the more expensive coverage options. People should purchase the amount of insurance that is necessary. Being over insured is not necessary and can be costly. Know how much insurance coverage you really need based on the car you have to decrease your insurance rates.

Affordable auto insurance is feasible if you seek out discounts. Auto insurance discounts are available, but many times a simple internet quote will not display the benefit of such perks. You will have to contact insurance companies individually to obtain detailed information on the discounts available. Vehicles with anti theft and safety devices will help lower the insurance rates because these devices are risk deterrents. The less risk the lower the insurance premiums. There are also insurance discounts for driving a limited number of miles, having more than one car insured by one company, age specific discounts for seniors or teens and discounts based on one’s professional affiliation. Make the effort to speak to an insurance agent at a car insurance company to discuss the discounts that you qualify for in order to obtain cheap inexpensive auto insurance.

Getting the inexpensive auto insurance you want requires some work. Although performing a quote comparison will help you narrow your choices for auto insurance companies, you must be willing to contact the companies directly to obtain more information on their services. Many auto insurance companies offer insurance discounts that can drastically reduce the cost of auto insurance premiums. Likewise, the individual seeking auto insurance should become knowledgeable about the different types of coverage available, and should choose the coverage that provides the most benefits at the most economical price.