- Decreasing Term Life Insurance PolicyOne policy that sets itself apart from all other types of life insurance policies is decreasing term life insurance. As the name implies the face amount of the policy gradually decreases over the years. The most common area where your need for life insurance decreases is when a policy is used to erase a mortgage debt when the homeowner dies. This policy perfectly fits that type of situation. The premium remains level for the duration.
All other life insurance policies are level death benefit policies but each of them have unique twists that policy buyers may find useful. - Yearly Renewable Term Policy This type of policy has a level death benefit as mentioned before, however, the premium increases every year if you choose to keep the policy. Here you have a one year term policy with the option of renewing it every year. Because you are older you pay the premium for the older age. This is life insurance in it's purest form. You would use this to pay off outstanding debt in the event of your death.
- 5 Year And 10 Year Term Policies These types of life insurance policies maintain a level death benefit for 5 or 10 years...depending on which policy you choose. These policies are also used to take care of fairly short term life insurance needs. You will find these level premiums to be quite inexpensive.
- 15 Year, 20 Year, 25 Year And 30 Year Term Policies A greater number of these types of life insurance policies that we are about to discuss are sold than any other. These are level premium term policies designed to take care of long term life insurance needs. Your choice would depend on how many years you need to be covered...
Let us assume you are using this policy for family protection. You have a child 3 or 4 years old. You need to be assured that the child and surviving parent can attain all desired goals in the event of the death of the insured. Because you want to provide sufficient cash or income at least until the child graduates college a 20 or a 25 year term policy would fit the bill. Had the child been older you could use the 15 year term policy. - Whole Life, Universal Life, Variable Universal Life And Variable Life Policies The premiums for these types of policies are much higher than those of the term policies...but they can fulfill an important need. If you have a desire to accumulate some cash through your life insurance policy these are the policies designed for that. You can use the whole life policy and the universal life policies as vehicles through which you can save money. The returns are not very high on these types of life insurance policies though...
You have a better chance getting a high return on your money if you invested in a variable universal life insurance policy or a variable life policy. These types of life insurance policies are sold by prospectus only and the agent needs an NASD licence before he can discus them with you.
Tuesday, November 23, 2010
Types Of Life Insurance Policies
Life Insurance Buying Tips
Life Insurance buying tips. If life insurance buying is approached in the proper manner it can be very beneficial to yourself and your family. You need to take the time to give some thought to a subject that can be very unpleasant. I guess that is why most people don't think about it, or at best think about it only after they have had a brush with death, or when a life insurance professional brings up the subject.
What will happen to your family when you die? Have they been provided for? Life Insurance is the solution and we can help. Compare Multiple Quotes from Highly Ranked Carriers and Save up to 70%! Getting your quote is easy and FREE. Click Here And Save |
Sometimes these people wait until it is too late to do something about such a critical matter. They find themselves not insurable when they discover they have some critical illness. People should give serious thought at least once per year as ones situation may change and you find that your need for life insurance may change as a result. One of the best life insurance buying tips is therefore to review your life insurance needs at least once per year. These are the questions any good life insurance agent would ask. Your answers would help him or her come up with an accurate amount that would be a perfect fit for you. Here are the questions you should ask.
- Should I buy life insurance to pay for funeral expenses when I die or do I prefer to have this taken from accumulated cash?
- Do I need a policy to pay estate taxes? This is for people with an estate in excess of $1,500,000. Estate taxes may be repealed in the near future. The congress is looking at this matter at the present time.
- Do I want to leave a lump sum for my family and how much? If the beneficiaries are well practiced in handling large sums of money then this may be a good idea, otherwise, it may be wise to provide an income.
- What about an income? Should I set up an income for the lifetime of the beneficiary, or should the income derived from the proceeds of the life insurance policy be paid out for a limited number of years? Should I let the insurance company hold the principal and pay out an income to the beneficiary?
- How about life insurance on my spouse? Would that be a good thing? What about the children, is there a need for life insurance?
- If you have a business, is there an employee that you could consider a key employee? Should you have some life insurance on him or her? If your business partner died, what would happen to his shares? What would happen to his family?
Subscribe to:
Posts (Atom)