Many people do not realize the importance of having some form of life insurance for themselves or the ones that they love. What is a life insurance policy? Well there are many different types of life insurances that you can choose from. You want to weigh your options with each different type of policy so you can be sure to make the best educated choice as to policy.
What is a life insurance term policy? This is as type of policy that gives people coverage for a certain amount of years at a special premium rate. This is generally coverage for death and nothing else. People wonder what a life term policy basic break down is. It consists of 3 key parts, the length of coverage, the premium to be paid and the face amount of the insurance.
What is permanent life insurance coverage? This is a coverage that will remain in effect until the policy pays out, matures or if the owner of the policy fails to pay the premiums when they are due. This policy cannot be cancelled by the insured except for the only reason of fraud by the insured. The cancellation must happen within a certain period of time which is actually defined by the law. When you have a permanent insurance, you build a cash value on the policy which helps to reduce the risk to the insurance company. This policy allows the person to borrow from the cash value of the life insurance as well as surrendering the policy in order to receive the surrender value.
Now keep in mind that what life insurance generally does is it divides the insurance into two basic classes which would be the permanent and the temporary. Life insurance can even have subclasses such as universal, term, whole life variable, variable universal and endowment. There are actually three types of permanent life insurance which are called the universal life, whole life and the endowment.
Now a person can also add types of coverage’s to their life insurance policy such as accidental death benefits. This can be added to such policies as a standard life insurance policy as a rider. If a person buys this type of rider for their policy, they actually double the face amount of their policy if the person insured dies from an accident. This is also called a double indemnity type of coverage. Many people find that some companies will even triple the amount of the indemnity coverage.
It is important to know all you can about what a life insurance policy is and what it will do for you in the even that something should happen. You want to make an educated decision where your loved ones are concerned should something happen to you. Life insurance policies will help ease the financial burden your loved ones may face in the event of your death.
Friday, February 1, 2008
Saturday, January 26, 2008
Term and Whole Life Insurance - the Differences
Most people want to know what the real difference is between Whole life insurance & Term Life Insurance and which the best option for them is. For obvious reasons because I enjoy helping, the best that I can really do is explain the difference between the two and the pro's and con's of each type of policy. You the consumer will understand the differences between both policies because you need to know what you're getting into before you buy.
Whole life insurance provides you insurance throughout your lifetime, as long as you keep up with the premium payments. The policy generally, will cover you up until your death or age 100, whichever occurs first. Some of the most known pros of a Whole Life Insurance policy are that you will also build an account that has actual cash value. Some of your premium goes to buy life insurance, while the rest is placed in safekeeping for the future. You can actually borrow against this account if you need to, but it needs to be paid back. This ability to borrow gives you a bit of piece of mind in case of expenses at college, auto repairs or any other of life's little emergencies.
Some of the known cons of Whole Life Insurance are that it can be very expensive. The monthly premium payments for whole life insurance will be much higher than a term Life insurance policy would be. Another con is that the cash value pays very low interest and as you get older the savings account feature becomes less attractive. For someone young and just starting out, this makes more sense because they have their entire lives ahead of them, but for someone middle aged or above, I'd buy Term and invest elsewhere.
A Term Life insurance Policy is also known as "pure life insurance" because that's all you're getting. Some obvious differences between the two policies are, unlike Whole Life insurance policies, there's no savings account that accumulates or to borrow against. You are simply paying and getting insurance. Another disadvantage is that, some term policies are only for that specific "Term" or time frame, not your entire life. Some Term life insurance policies, such as Guaranteed Term, can be rolled over.
Most term life insurance policies only last a specified period of time. For instance, the best use of this policy is if the "breadwinner" of the household who is middle aged, the kids are grown, but still in college, he or she has been paying on their major assets, like their home for example. For several years and they need some security to make certain that if anything happened, everything would be taken care of so that the family could go on without any issues, other than the loss of their loved one. A 15 or 25 Year Term Policy might be the best option for the fictional example above, depending on their individual living circumstances.
Please, now I am sure you know why it's difficult to give counseling to people without knowing their specific circumstances. But just learning the differences between whole life insurance and term life insurance these two more popular types of insurance policies should help you immensely in the future. You can do comparison shopping online and good luck.
Whole life insurance provides you insurance throughout your lifetime, as long as you keep up with the premium payments. The policy generally, will cover you up until your death or age 100, whichever occurs first. Some of the most known pros of a Whole Life Insurance policy are that you will also build an account that has actual cash value. Some of your premium goes to buy life insurance, while the rest is placed in safekeeping for the future. You can actually borrow against this account if you need to, but it needs to be paid back. This ability to borrow gives you a bit of piece of mind in case of expenses at college, auto repairs or any other of life's little emergencies.
Some of the known cons of Whole Life Insurance are that it can be very expensive. The monthly premium payments for whole life insurance will be much higher than a term Life insurance policy would be. Another con is that the cash value pays very low interest and as you get older the savings account feature becomes less attractive. For someone young and just starting out, this makes more sense because they have their entire lives ahead of them, but for someone middle aged or above, I'd buy Term and invest elsewhere.
A Term Life insurance Policy is also known as "pure life insurance" because that's all you're getting. Some obvious differences between the two policies are, unlike Whole Life insurance policies, there's no savings account that accumulates or to borrow against. You are simply paying and getting insurance. Another disadvantage is that, some term policies are only for that specific "Term" or time frame, not your entire life. Some Term life insurance policies, such as Guaranteed Term, can be rolled over.
Most term life insurance policies only last a specified period of time. For instance, the best use of this policy is if the "breadwinner" of the household who is middle aged, the kids are grown, but still in college, he or she has been paying on their major assets, like their home for example. For several years and they need some security to make certain that if anything happened, everything would be taken care of so that the family could go on without any issues, other than the loss of their loved one. A 15 or 25 Year Term Policy might be the best option for the fictional example above, depending on their individual living circumstances.
Please, now I am sure you know why it's difficult to give counseling to people without knowing their specific circumstances. But just learning the differences between whole life insurance and term life insurance these two more popular types of insurance policies should help you immensely in the future. You can do comparison shopping online and good luck.
Friday, January 25, 2008
Term Life Insurance Might be your Best Choice
Term life insurance is simply an alternative to lasting or whole life insurance that is from time to time overlooked or unused by many who find themselves turned off by the big-ticket cost of the later. However, term life insurance is definitely well accepted for being the cheapest and most capable alternative to whole life insurance. The greatest payment of term life insurance is its affordability for all.
With term life insurance, you have the option of picking the length of the policy. For example, you can have one, five, ten or thirty years. Next, you pay a small monthly amount maybe as little as $10 if you so choose because that determines what level of coverage you want. This can be across the scale from $100,000 into the millions. Finally, you have to pick the person or people that you want to benefit in the instance of your death.
Term life insurance is perfect if you want momentary rather than long-term insurance coverage. Young people starting out with new families find that they need life insurance coverage more than older people whose children have grown up, and who have their years of savings in the bank. Simply put term life insurance is mainly used to protect against early (i.e. premature) death.
A lot of individuals also use term life insurance to protect against peculiar needs and then stop the insurance when coverage is no longer needed. Customers from time to time take out protection until all of their offspring are able to care for themselves, while others instead take out a policy until their spouse are able to receive their retirement incomes.
There are many other situations in which term life insurance is necessary; many parents use it to cover the length of their children's education, to ensure their kids get the best start in life even if something untimely should happen to mom and dad. Another popular option is to guarantee a mortgage against a policy so that dependents or spouses won't lose their home if the worst does happen.
The biggest benefit of term life insurance is its low cost. If you have rather good health, you'll pay far less. It is advisable to take out term life insurance as soon as possible, in simple terms because the cost of the insurance will increase as you age. For example, a $200,000 term life insurance policy would cost a 30 year-old roughly $300 a year. While in contrast, somebody investing the same amount of money every year into a whole life insurance plan would end up with a policy in the region of $25,000. This is because whole life insurance policies combine forced savings with insurance.
The good news is that term life insurance is available for purchase at affordable prices several insurance companies. Be aware, that policies from different companies can vary in price by as much as 40%. Please do shop around to find the best deal. Comparison shopping on term life insurance can be accomplished online. In your desire for the cheapest term life insurance policy pay attention to the financial health of the insurer.
With term life insurance, you have the option of picking the length of the policy. For example, you can have one, five, ten or thirty years. Next, you pay a small monthly amount maybe as little as $10 if you so choose because that determines what level of coverage you want. This can be across the scale from $100,000 into the millions. Finally, you have to pick the person or people that you want to benefit in the instance of your death.
Term life insurance is perfect if you want momentary rather than long-term insurance coverage. Young people starting out with new families find that they need life insurance coverage more than older people whose children have grown up, and who have their years of savings in the bank. Simply put term life insurance is mainly used to protect against early (i.e. premature) death.
A lot of individuals also use term life insurance to protect against peculiar needs and then stop the insurance when coverage is no longer needed. Customers from time to time take out protection until all of their offspring are able to care for themselves, while others instead take out a policy until their spouse are able to receive their retirement incomes.
There are many other situations in which term life insurance is necessary; many parents use it to cover the length of their children's education, to ensure their kids get the best start in life even if something untimely should happen to mom and dad. Another popular option is to guarantee a mortgage against a policy so that dependents or spouses won't lose their home if the worst does happen.
The biggest benefit of term life insurance is its low cost. If you have rather good health, you'll pay far less. It is advisable to take out term life insurance as soon as possible, in simple terms because the cost of the insurance will increase as you age. For example, a $200,000 term life insurance policy would cost a 30 year-old roughly $300 a year. While in contrast, somebody investing the same amount of money every year into a whole life insurance plan would end up with a policy in the region of $25,000. This is because whole life insurance policies combine forced savings with insurance.
The good news is that term life insurance is available for purchase at affordable prices several insurance companies. Be aware, that policies from different companies can vary in price by as much as 40%. Please do shop around to find the best deal. Comparison shopping on term life insurance can be accomplished online. In your desire for the cheapest term life insurance policy pay attention to the financial health of the insurer.
Life Insurance Policies
A large number of life insurance policies were purchased from companies that only offer different life insurance policies to their clients. These life insurance companies try to keep their individuality by making different classifications on the policies.
Life insurance policies are classified into different types. Term life insurance policy is the easiest and almost anyone can apply for a term life insurance policy. The attractiveness of this policy is that it is inexpensive. The biggest disadvantage is that you accumulate no cash value. If you stop paying you lose whatever you have paid over the past months or years. Basically this policy is meant for young people live with their families.
Life insurance policies like term life insurance are a convertible and renewable program. The range of term life insurance policy is 1 to 100 years. If you have chosen a one-year program then the coverage increases after every one year. It is better to buy a whole life insurance policy from any of the whole life insurance companies than a term life insurance for 100 years.
The other type of Life insurance policies is called permanent Life Insurance- This life insurance policy is for the entire life of a policyholder. The value increases throughout the life and usually accumulates cash value. The most common terms are Par and Non-Par terms both are mostly used in the context of life insurance policies. Par provides dividend, while non par on the other hand does not offer any dividend.
Life insurance policies can also be refereed to as whole life or universal life insurance policy. Both have combinations of term life and permanent like. The main differentiation involves payment terms, years of coverage and what cash value is accumulated. Universal life insurance policy is tailored for people having pension contributions, paying tax on income etc. These policies are most difficult of all the insurance contracts.
After going through all life insurance policies you must choose the best one. Online life insurance companies can help provide you all needed information. Make sure to tell the truth about your life style and do shop around by comparing quotes. The best measure is always to take into consideration the credit rating of the insurance company that will be issuing your life insurance policies.
Life insurance policies are classified into different types. Term life insurance policy is the easiest and almost anyone can apply for a term life insurance policy. The attractiveness of this policy is that it is inexpensive. The biggest disadvantage is that you accumulate no cash value. If you stop paying you lose whatever you have paid over the past months or years. Basically this policy is meant for young people live with their families.
Life insurance policies like term life insurance are a convertible and renewable program. The range of term life insurance policy is 1 to 100 years. If you have chosen a one-year program then the coverage increases after every one year. It is better to buy a whole life insurance policy from any of the whole life insurance companies than a term life insurance for 100 years.
The other type of Life insurance policies is called permanent Life Insurance- This life insurance policy is for the entire life of a policyholder. The value increases throughout the life and usually accumulates cash value. The most common terms are Par and Non-Par terms both are mostly used in the context of life insurance policies. Par provides dividend, while non par on the other hand does not offer any dividend.
Life insurance policies can also be refereed to as whole life or universal life insurance policy. Both have combinations of term life and permanent like. The main differentiation involves payment terms, years of coverage and what cash value is accumulated. Universal life insurance policy is tailored for people having pension contributions, paying tax on income etc. These policies are most difficult of all the insurance contracts.
After going through all life insurance policies you must choose the best one. Online life insurance companies can help provide you all needed information. Make sure to tell the truth about your life style and do shop around by comparing quotes. The best measure is always to take into consideration the credit rating of the insurance company that will be issuing your life insurance policies.
Thursday, January 24, 2008
How To Find The Best Life Insurance Rates
If you are looking for affordable life insurance policies, you should learn to hunt for the best life insurance rates. Finding the best life insurance rates is not really so difficult especially today where most the big insurance companies already offer their services online. To help you find the best life insurance rates, here are a few tips for you.
Know What You Want And What You Need
Before anything else, you need to make sure what you really want and what you need. Always remember that different people have different insurance needs. Going for those policies that give you the best life insurance rates is a good thing but you should be very careful about your choices if you do not want to end up with a policy that does not answer your needs. For instance, if you are not married and you do not have kids or anybody who depends on you for support, you do not really need a comprehensive life insurance policy.
What's the point of leaving something behind when you do not really have anybody who will benefit from it? On the other hand, if you have a wife and kids and you want them to live comfortably even after you are gone, you might want to go for some comprehensive life insurance package that will address the needs of your family. At this point, it would be a good idea for you to start hunting for a policy that gives you the best life insurance rates.
Shop Around First
If you want to get the best coverage, you need to spend some time doing your homework. Always remember that getting a life insurance policy is a big decision so you should not just rush into things. The different types of life insurance can be quite confusing so need to be familiar with the basic features of each type of life insurance. Before you decide which type of life insurance you will have, compare the benefits of each type of insurance first.
Do not just go for the insurance package that offers you the lowest life insurance rates. For all you know, the life insurance package that offers the lowest life insurance rates may not even be suitable for you. Paying lower premium for a coverage that does not really answer your needs will not cut it. In other words, paying less for something that you cannot really use is not a good idea.
Know What You Want And What You Need
Before anything else, you need to make sure what you really want and what you need. Always remember that different people have different insurance needs. Going for those policies that give you the best life insurance rates is a good thing but you should be very careful about your choices if you do not want to end up with a policy that does not answer your needs. For instance, if you are not married and you do not have kids or anybody who depends on you for support, you do not really need a comprehensive life insurance policy.
What's the point of leaving something behind when you do not really have anybody who will benefit from it? On the other hand, if you have a wife and kids and you want them to live comfortably even after you are gone, you might want to go for some comprehensive life insurance package that will address the needs of your family. At this point, it would be a good idea for you to start hunting for a policy that gives you the best life insurance rates.
Shop Around First
If you want to get the best coverage, you need to spend some time doing your homework. Always remember that getting a life insurance policy is a big decision so you should not just rush into things. The different types of life insurance can be quite confusing so need to be familiar with the basic features of each type of life insurance. Before you decide which type of life insurance you will have, compare the benefits of each type of insurance first.
Do not just go for the insurance package that offers you the lowest life insurance rates. For all you know, the life insurance package that offers the lowest life insurance rates may not even be suitable for you. Paying lower premium for a coverage that does not really answer your needs will not cut it. In other words, paying less for something that you cannot really use is not a good idea.
The Many Different Life Insurance Companies
Just like with any service any more, there are several, if not hundreds of different life insurance companies that you can turn to for your life insurance needs. Every company is run a little different but each one generally carries the same two types of life insurance policies. There are basically just two different types that life insurance companies have and those are term and whole life insurance policies. The difference between the two is something that the life insurance companies should have no problems in explaining.
All life insurance companies should have a good quality staff of people who are not only knowledgeable in their products but also be very good with their customers and those who are seeking to possibly become a customer. The life insurance companies who do not know how to treat their customers are generally the ones that fall out of business and just completely fail within just a few short years. The ones who show excellent customer service and a true dedication to their work are the life insurance companies who succeed and continue to be there for the needs of their customers.
Where To Find Them
Just about every time you venture out you are surely at risk of driving past car and life insurance companies as they are just about everywhere. In fact, there are so many out there in buildings along the main streets of America that maybe there is not any more room for life insurance companies. Maybe that is the reason for online life insurance companies who do not even have an office to go to. While this can be a scary thought for some, this could be how they save money and by doing that, they can pass those savings onto their customers.
If you are not someone who is yet comfortable with online life insurance companies, there are many companies that can be found in your phone book simply by looking under insurance in the yellow pages. Also, the Internet can often times serve as an excellent directory and even have the information on the exact address and directions for the different life insurance companies. Make sure that while you are naturally going to try and save money on your policy, make sure that you are not sacrificing friendly customer service for a few bucks. Keep your eyes and mind open and you will find what you have been looking for.
All life insurance companies should have a good quality staff of people who are not only knowledgeable in their products but also be very good with their customers and those who are seeking to possibly become a customer. The life insurance companies who do not know how to treat their customers are generally the ones that fall out of business and just completely fail within just a few short years. The ones who show excellent customer service and a true dedication to their work are the life insurance companies who succeed and continue to be there for the needs of their customers.
Where To Find Them
Just about every time you venture out you are surely at risk of driving past car and life insurance companies as they are just about everywhere. In fact, there are so many out there in buildings along the main streets of America that maybe there is not any more room for life insurance companies. Maybe that is the reason for online life insurance companies who do not even have an office to go to. While this can be a scary thought for some, this could be how they save money and by doing that, they can pass those savings onto their customers.
If you are not someone who is yet comfortable with online life insurance companies, there are many companies that can be found in your phone book simply by looking under insurance in the yellow pages. Also, the Internet can often times serve as an excellent directory and even have the information on the exact address and directions for the different life insurance companies. Make sure that while you are naturally going to try and save money on your policy, make sure that you are not sacrificing friendly customer service for a few bucks. Keep your eyes and mind open and you will find what you have been looking for.
American General Life Insurance Company: Not Just For Soldiers
Often known as AIG for short, American General Life And Accident Insurance Company was not named because they only offer insurance to American generals. In this case, the word "general" refers to the word's alternate meaning of "common to or current to the majority" (Funk & Wagnalls Standard Dictionary, 1980). Over four million Americans use American General Life And Accident Insurance Company for their insurance needs, whether for business or private use.
How Stable Is AIG?
Although any life insurance company offers great rates and incentives, not every insurance company is going to be around in the next few years. Before you decide on any insurance company, take a look at its financial ratings. There are several independent financial ratings watchdog companies that act as a Consumer Reports of the financial world.
The top ratings companies are Standard & Poors, FitchRatings and Moody's Investors Service, which release their ratings to the general public. They grade a lot like the American school system, with A being outstanding and F as "failed". American General Life And Accident Insurance Company has been consistently A++ or even higher for the last few decades. This means, among other things, is that the company is financially stable.
A Brief History Lesson
American General Life And Accident Insurance Company has been in business for over 100 years, starting on February 28, 1900 in Tennessee. Back then, its name was "The National Sick And Accident Association of Nashville." For a while, it was known as the NLT Corporation. It merged with Houston, Texas-based American General Corporation in 1982. Since then it not only changed its name several times, but bought out yet another insurance company.
Although American General Life And Accident Insurance Company does offer employers services for their workers, the company is more focused on the insurance needs of the individual (often called "middle market" in insurance lingo). Choices offered include term insurance, universal coverage and their trademarked "Quality of Life Insurance".
The latter is a new idea in life insurance – giving money when you and your family need it BEFORE you die. This insurance helps pay the bills in case you contract a critical illness or even a terminal illness. It helps if you suddenly become disabled and even with retirement, as well as life insurance to help your family out in case you die. AIG is available in most states, so check and see if it is available where you live.
How Stable Is AIG?
Although any life insurance company offers great rates and incentives, not every insurance company is going to be around in the next few years. Before you decide on any insurance company, take a look at its financial ratings. There are several independent financial ratings watchdog companies that act as a Consumer Reports of the financial world.
The top ratings companies are Standard & Poors, FitchRatings and Moody's Investors Service, which release their ratings to the general public. They grade a lot like the American school system, with A being outstanding and F as "failed". American General Life And Accident Insurance Company has been consistently A++ or even higher for the last few decades. This means, among other things, is that the company is financially stable.
A Brief History Lesson
American General Life And Accident Insurance Company has been in business for over 100 years, starting on February 28, 1900 in Tennessee. Back then, its name was "The National Sick And Accident Association of Nashville." For a while, it was known as the NLT Corporation. It merged with Houston, Texas-based American General Corporation in 1982. Since then it not only changed its name several times, but bought out yet another insurance company.
Although American General Life And Accident Insurance Company does offer employers services for their workers, the company is more focused on the insurance needs of the individual (often called "middle market" in insurance lingo). Choices offered include term insurance, universal coverage and their trademarked "Quality of Life Insurance".
The latter is a new idea in life insurance – giving money when you and your family need it BEFORE you die. This insurance helps pay the bills in case you contract a critical illness or even a terminal illness. It helps if you suddenly become disabled and even with retirement, as well as life insurance to help your family out in case you die. AIG is available in most states, so check and see if it is available where you live.
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