All Life Insurance Tips

Need life insurance for me my husband and two children. What is the different term life and or whole life.?

How do i find a good company to go with.

Public Comments

1. high premium for term life You can have benefit and in case of whole life very low premium benefit goes to nominees.
2. Many people seem to ask this question. The following is my answer to a similiar querie which I have cut and pasted: There are two types of life insurance: Term and Permanent. Term is temporary insurance and permanent is Whole Life or Universal Life. Term Insurance is only for the period of time you're insured - 10 years, 20 years or 30 years. Whole Life and Universal Life are for your whole life. The advantages of Term insurance is in your younger years you can get a large face amount for a very low cost. The disadvantages of Term insurance is when your term period is up and when need it most in your later years, the cost is extremely high and unaffordable. At that point the policyholder cancels the Term. Another disadvantage of Term insurance is the risk you may become uninsurable due to health issues such as diabetes, heart problems, cancer or a number of things that will cause an insurance company to decline renewing your policy. The disadvantages of Whole Life or Universal Life insurance are the initial cost is higher than Term. The advantages of Whole or Universal Life are: the initial cost is fixed, it's permanent coverage whether you become uninsurable or not (as long as your premiums are paid), it builds cash that you can either withdraw or borrow, you don't pay taxes on the money taken out of the policy (as long as the policy stays in force), it's a forced savings you otherwise would not have put away for yourself. Another advantage is the fixed cost is far less than Term in the later years, the time when you need life insurance the most. The best time to purchase Whole or Universal Life is in the younger years. Purchasing life insurance is a personal matter. No particular type of insurance fits all. Everyone has a different family situation requiring the proper financial plan. With respect to finding a good company, you want to go with an insurance company that is A rated and above. High ratings indicate the financial strength, length of existence, reputation, a combination of things about the company. Insurance companies are required to reveal their rating. You can find them online to get that information. California licensed - 10 years mob442ins@yahoo.com.
3. Term life is pure insurance, and costs about 1/10 what whole life does - because it only guarantees a rate for a certain number of years - up to 20. Whole life, costs much more, and has a gimicky "savings" account part to it (which reverts to the insurance company if you die). Before you think about selecting term vs. whole, or even a hybrid, like universal life, or return of premium term, you need to sit down and figure out exactly what you want the insurance to DO for you, if you die. Example: me. I want my life insurance to pay to put my minor kids through school, through college. That means, I need ENOUGH insurance money to cover the kids, AND, when the youngest is 24, we don't NEED it any more, because my goal would have been acheived. So. For ME, $250,000 of 20 year term is what *I* need. Then, in case I change my mind about the goal later, I bought "guaranteed renewable and convertable" riders on it. We 'self insure' funeral costs for kids - as if they end up not dying, that money can ALSO go towards education costs.
4. Find a broker to go with and have them show you multiple companies. Term life lasts for a period of time ( a term - 1-30 years) and whole life lasts your whole life. Term is cheaper since it's only covering you for a short period of time. A broker is your best bet. In the interim you can get prices for term and policies that last until your age of 100 on my web site. The tool provided there requires no personal information to use and is invaluable when meeting with brokers to make sure they're showing you something competitive because it gives the prices for 150 different carriers..
5. I agree with Mob442's answer, except stay away from Unversal Life insurance, agents tend not to tell people that they can run out, if the cost of insurance exceeds the premiums being paid. Theses policys run off interest rates and if they are not funded right, 15 years from now you will be getting a call or notice stating that at current rates your policy will be in force for another 6 months unless you increase your premiums. There are some policy's and company's that offer guarnteed Universal lifes contracts, which means the policy is guarnteed to not run out no matter what the intrest rate is. But again, be very careful when looking at a Universal Life policy. Please feel free to contact me with any questions at sam_alessa@yahoo.com Insurnace Agent