Posted: August 20th, 2011 | Author: admin | Filed under: Life Insurance | Tags: Cash Values, Collateral, Interest Rate, Investment Portfolio, Life Insurance Company, Life Insurance Policies, Life Insurance Policy, Life Policies, Lump Sum, Period Of Time, Permanent Life Insurance, Premiums, Rest Of Your Life, Slant, Term Insurance, Term Life Insurance, Variable Life Insurance, Variations, Whole Life Insurance, Whole Life Insurance Policies | Comments Off
Did you know that whole life insurance or some variation thereof is bought more than another types in the United States? Why do you think this is so? Is it because the people know nothing about term insurance? Not so! Term insurance is simple to understand. You own $1,000,000 of term life insurance for a specific period of time and you die within that period the life insurance company pays $1,000,000, as long as you keep paying the premiums. Everyone knows about term life insurance.
Permanent life insurance is a different matter. There is much more to absorb when it comes to a permanent policy. You can consider the whole life insurance policy which is really a policy which lasts for the rest of your life, even if you live to age 100. The premium payments can be level for the entire period or, as with some modified whole life policies, you start out with a lower premium and it increases every year for 5 or 10 years then it levels off.
On the other hand you can contract with the life insurance company to pay only for a specific period of years, 10 years or 20 years for example, and the policy will remain in force for the rest of your life. You can also arrange with the company to pay one lump sum and you have your single premium whole life insurance policy for the rest of your life.
Even the the variable life insurance policy is whole life based thus it is considered permanent life insurance. Variable life insurance is a whole life policy with an investment portfolio attached.
These are the basic variations of whole life insurance. Each life insurance company has a different slant to their modified whole life policies, however.
Whole life insurance policies have guaranteed cash values which you may use as you see fit. You may use these values as collateral if you want to get a loan from a bank or other financial organization. On the other hand you may choose to borrow the money from the policy itself. The interest rate is usually lower and you are never under pressure to repay within a given period of time. Any outstanding balance, however, will be deducted from the face amount upon your death.
Whole life insurance policies also earn dividends if your life insurance company is effective with their investments and also if they keep expenses down. Dividends are not guaranteed. These dividends are applied according to your wishes.
The dividends earned on your whole life policy can be used to reduce premiums, can be paid to you in cash each year, can be left with the life insurance company to accumulate interest or they can be used to purchase paid up additions. Paid up additions are tiny single premium whole life insurance policies which increase the amount paid at death. They also have cash values which accumulate interest and they earn dividends as well.
Permanent life insurance policies are very effective, yet complex, tools. If you take the time to understand them you will more appreciate why more people buy them than term insurance. Whole life insurance can be kept for the rest of your life.
Posted: August 5th, 2011 | Author: admin | Filed under: Life Insurance | Tags: American General Insurance, American General Insurance Company, Better Business Bureau, Coverage Policies, E Mail, General Insurance Company, Information Directories, Insurance Organization, Life Coverage, Life Insurance Companies, Life Insurance Company, Life Insurance Policies, Life Insurance Policy, Life Insurers, Local Brokers, Metropolitan Life Insurance, Metropolitan Life Insurance Company, Transamerica Insurance, Transamerica Occidental Insurance, Types Of Life Insurance Policies | Comments Off
Because life insurance is so important, most people consider where they should purchase it from. There are several options when shopping for a life insurance policy. An individual can acquire they coverage desired via local brokers, life insurance companies or directly from the web.
To uncover the best deals and rates requires a great deal of research. Many sales people are hired by life insurance companies to assist the customers select the suitable life insurance plans. Contacting these salespeople through telephone, e-mail or personally can be one to buy coverage.
However, always make sure that the life insurance organization is sanctioned by the state and the Better Business Bureau before shopping with them.
The World Wide Web is the ultimate location to find all the information you need. Online shopping is the simplest and most reliable way to buy a life insurance policy. On the internet you can get a fast accurate quote and also get information. Directories for online industries include a lot of companies. These can also help you to revise, equate, and buy a fitting life insurance policy for your state
The internet provides a number of sites where you can search for relevant information on where to buy life insurance plans. Information about the ratings and policies of leading providers of life insurance are available from these sites. By providing life coverage policies to meet their customers needs, these companies share similar fundamentals. Nevertheless, they each are different in coverage, exceptions and terms.
For example, Metropolitan Life Insurance Company, Transamerica Occidental Insurance Company, American General Insurance Company, CIGNA and Aetna are some of the recognizable and famous names among life insurers accessible on the internet.
These companies easily handle all types of life insurance policies. Each company will have their own website where you can check ratings and information about life insurance. A customer should go to all these sites to compare and find out the cheapest plan with all necessary coverage, before making the purchase.
Dependable applications and worry-not management of policies are some unique things that Metropolitan Life Insurance Company presents. For monitory planning their solution and services are the best. Asia and Europe are primarily served by Metlife and being a part of Reinsurance Group of America it serves the customers as well.
***American General Insurance Company*** (AIG) A leader worldwide in financial services dealing with insurance,retreat planning and savings. The insurance company covers the service internationally all over Asia, North America, Europe, and Latin America. AIG provides affordable life insurance, at a reduction rate of 75%. Online quotes make a shopping less time consuming and infinitely faster.
Term, whole, and universal life insurance policies are available at great rates from Transamerica Occidental Life. Other online companies who offer cheaper rates for life insurance are Aetna and Cigna.
There are certain online life insurance sites that help people to buy their policies. Using the assistance of the sites, you’ll be able to have an answer to your question as to where to purchase your life insurance. Visit the websites below to get moving in the correct direction. The quotes from major life insurers will be compared as listed above.
Posted: May 30th, 2011 | Author: admin | Filed under: Life Insurance | Tags: Beneficiaries, Beneficiary, Blank Areas, Blank Spaces, Business Partners, Creditors, Family Members, Health Condition, Health Status, Immediate Family, Insurable Interest, Life Insurance Companies, Life Insurance Company, Life Insurance Policy, Life Insurance Questions, Odds, Other Additional Information, Personal Health History, Policy Contract, Stranger | No Comments »
Who is allowed to take out a life insurance policy on my life?
The only individual who can buy a life insurance policy on your life is someone who has an actual “insurable interest” on your life. A stranger is not allowed to purchase a life insurance policy on your life.
Individuals who typically have an insurable interest on someone else’s life are family members (immediate family), employers, business partners, or major creditors.
Do my beneficiaries have an insurable interest on my life?
If you purchase a life insurance policy on your own life, then you are the owner of that particular policy. You have the right to name anyone you like as your beneficiary.
How do I begin the process of applying for life insurance?
Generally, you fill out an application regarding your personal health history, age, and other information. Depending on your answers on the application, the life insurance company will determine if it wants to insure you or not.
Once the application is completed, you should make sure to review it to catch any mistakes, blank areas, or any other additional information you forgot to include. This application will become part of your policy contract down the line, and any blank spaces left on the application could run the risk of being filled in by another party.
It is always essential to be as honest as possible when filling out the application. Any factual omissions, exaggerations, half-truths, or lies could cause your policy to become void if discovered later, risking leaving your beneficiaries with nothing.
How large of a factor are my age and health status when a company is deciding to insure me?
These factors are definitely something that are taken into consideration when a life insurance company is determining if they want to insure you.
It’s true that life insurance companies generally assume risks in regards to insuring someone who is not in the ideal health condition, these companies still attempt to stack the odds as high as possible in their favor. To minimize any potential risk, insurance companies decide how much to charge the potential insured party directly depending on particular factors, such as health condition and age.
Life insurance companies use statistical measurements (“mortality tables”) to estimate how long a potential insured party will live for.
Depending on this measurement the insurance company will gauge how much to charge you for the life insurance policy and what benefits will come
along with it.
As the insured party grows older, the risk the insurance company is taking also grows, as does the cost of the policy. This is one of the main reasons why life insurance tends to be so much cheaper the younger you are. It can be difficult to secure life insurance at times if you are fairly old in age.
Life insurance companies do take other factors into consideration other than health and age, however. They also look at elements that can negatively affect a potential insured party’s life expectancy, such as personal habits, career choices, and family health histories.