Posted: December 25th, 2011 | Author: admin | Filed under: Life Insurance | Tags: Age Health, Beneficiary, Buy Life Insurance, Buy Term Life Insurance, Buying Life Insurance, Fate, Free Life Insurance, Funeral Expenses, Health Occupation, Insurance Term Life, Life Time, Maturity, Misery, Mishap, Period Of Time, Proceeds, Sum Of Money, Term Life Insurance, Time Coverage, Whole Life Insurance | Comments Off
When I asked people “have you bought yourself a life insurance or have you insured?” Most of the answers became another question, why buy life insurance?
Buying life insurance is a protection for ourselves and our family, fate is unpredictable, should mishap falls on us we do not know. Who is going to take care of our children upon our death? Should we see them live on charity or let them live in misery? To own a policy is to secure our family; the proceeds from the life insurance can substitute the income to our family upon our death. We also buy life insurance to cover our funeral expenses, for funeral expenses is a huge sum of money to pay. If we died our children have to live on.
Buy term life insurance or whole life insurance?
There are two basic types of life insurance, term life insurance or whole life insurance.
Term life insurance
Term life insurance provides the buyer for a specified period of time or term, this life policy carries no cash value, and it covers the insured for a stated term of 10 to 20 years or more, upon maturity the policy is then expire and invalid, the coverage will then cease. Any how you may request a new policy, but the premium will be expensive if a person is old.
Whole life insurance
Whole life insurance provides the insured permanent or life time coverage and with adjustable cash value, the buyer can borrow the cash value for times in need. The beneficiary will receive the proceeds upon the death of the insured. The premium of this policy depends on the age, health, occupation and some other factors of the buyer.
Buy life insurance early and pay less
To buy life insurance is better to start young, we can start off with little coverage and therefore also little premium to pay. When we are single, we have less responsibility, as we married our responsibility getting more and we can buy another additional life insurance, so that we have more coverage, and give more security to our family.
You can get your free life insurance quote online, the premiums are adjustable at the buyer’s discretion, please feel free to visit us.
You can learn more about life insurance with the convenience of internet, so find out more about whole life insurance or term life insurance, you can obtain free life insurance quote by following some simple steps of filling in the form, you can also get tips for saving on life insurance premium just by some clicks, so visit us at http://www.indianapolislifeinsurance.net today
Posted: October 31st, 2011 | Author: admin | Filed under: Life Insurance | Tags: Amount Of Money, Beneficiary, Death Benefit, Face Value, Females, Life Insurance Company, Life Insurance Policies, Life Insurance Policy, Life Span, Lifetime Protection, Lump Sum, Maturity, Permanent Life Insurance, Premiums, Sum Of Money, Term Insurance, Term Life Insurance, What Is Whole Life Insurance, Whole Life Insurance, Whole Life Insurance Policies | Comments Off
It is not difficult to understand what is whole life insurance, as the name implies, it is a life insurance policy that provides the insured a lifetime protection; it is a type of permanent life insurance. For example, if you bought a whole life insurance, you will have to pay a fixed amount of premium for life instead of the increasable premiums of term life insurance.
How long do we need to pay for a whole life insurance?
There are whole life insurance policies designed to mature at the age of 100, this is the age when premiums end and the cash value equals to the face value of the policy, and this cash value will be paid to the insured. Normally a whole life insurance policy doesn’t specified how long is the maturity, the premiums are calculated by the insured’s age, usually starts at the age when he buys until 85 years old, the male and female could be different because the females have a longer life span than the men. The premium is then calculated, and a fixed amount of premium needs to be paid, whether monthly, quarter yearly, half yearly or yearly.
As long as the buyer pays the premiums, he will benefit the guaranteed death benefit. Should he die at old age or young, or should he die of accident or illness the life insurance company will pay a lump sum of money to the beneficiary, this amount of money is depended on how much the buyer wants to be insured, if he wants to have a coverage of $100 thousand, the beneficiary will receive a one lump sum of $100 thousand upon his death.
Whole life insurance provides the buyer with cash value, and the buyer can borrows money from the cash value, or if the buyer wished to stop paying the premium for some time, the cash value will pay the premiums automatically, so that the policy will not lapse. But if the cash value has used up, the buyer needs to start paying the premiums again or else the policy will lapse.
Another benefit for whole life insurance is, the coverage is adjustable, and it can be increased. If the initial coverage is $50 thousand, the coverage after some years could be more than $50 thousand. That is to say the insured now has a coverage of more than the initial $50 thousand without paying more on the previously stated premiums.
Cash value accumulation
Another benefit of whole life insurance is the cash value accumulation. This cash value was built after the buyer paid his premium, this cash value increases each year, and the insurance company will increase the cash value as interest to benefit the policy holder. If the policy holder wants to surrender the policy and get the cash he is entitled to do so, but he will no longer under cover, but normally he is advised not to do so. The buyer has another option that is he can borrow the cash as loan and maintain his policy, so that he is still insured. The cash value taken out is tax-free, and in some countries the premium paid per annum is declarable for tax paying, that is the buyer can reduce his tax payment.
This tax reduction is another benefit for a life insurance buyer.
Disability benefit
The buyer can add an additional premium rider to his policy, should he become disabled, after six months of that disability the life insurance company will pay the premiums for him, for the rest of his life.
Accidental benefit
Another benefit of whole life insurance is accidental benefit. The buyer can purchases an additional accidental policy, should he become partially or totally disabled, the insurance company will compensate the insured a percentage of payment as specified in the policy. The compensation varies according to individual policies; the buyers are advice to read through thoroughly.
For further definition on what is whole life insurance, life insurance companies and the agents are pleased and obliged to assist their customers, for this policy has been in the market for many years. There are some experienced life insurance agents very well versed on this particular policy, perhaps you can ask them to provide you more information on what is whole life insurance.
You can seek more information on other types of policies, or view our whole life insurance explanation, find out the reasons why this policy can survive almost hundred of years, or read more on this topic by clicking whole life insurance advice. Please feel free to visit us at http://www.indianapolislifeinsurance.net today.