Why Term Life Insurance from Employer May Not Be The Cheapest
WSJ's columnist Diana Ransom discussed the same thing I recognized a few years ago: for employees young and healthy, buying term life insurance from employee-sponsored plans may not be the most economical way to get coverage.
"A key factor to check is whether your company's plan charges the same premiums for all workers or whether the premiums are "age-graded." In the latter design, which is more common, there's one charge for all workers in a particular age bracket -- say, between 35 and 44 -- with lower premiums for younger age brackets and higher premiums for older age brackets. If there's a single charge for everyone, that coverage may be relatively inexpensive for the older workers but far more expensive than other policies in the marketplace for younger workers. (Life insurance is usually more expensive for older buyers because their risk of death is greater.) That's less of an issue with age-graded plans. Another big consideration is your health. If you ..." Full StoryReview: TermLifeOptions.com
With the proliferation of internet, it is becoming common for people to getting life insurance quotes online, especially for term life insurance, a product that is so commoditized that it usually only takes applicants a few minutes to answer a bunch of questions before getting the rate quotes from various insurers. It is therefore no surprise that the number of online insurance quote sites are growing every day. TermLifeOptions.com is one of such sites what specialize in providing free quotes on term life insurance. The site design is pretty neat, and properly balances the online quote tool with good readings on general insurance concepts (such as why one needs life insurance, how much insurance is appropriate, and description of different types of life insurance products ... Full Story
Term Life Insurance: It's Getting Cheaper and Cheaper
It shouldn't be a surprise that term life insurance is getting cheaper because people are generally living longer. Also, the popularity of getting insurance coverage from online outlets reduced the cost of insurers, which also drives the cost down. Is it time for me to double-size my million-dollar policy?
"A key financial product -- term life insurance -- continues to get cheaper and easier to buy. Prices for coverage have plummeted, partly because people are living longer. A healthy 40-year-old man who doesn't smoke can now get a $500,000 term-life policy for as little as $350 a year for 20 years -- down from $375 two years ago and $674 a decade ago, according to AccuQuote, an online insurance broker. In the early 1990s, the same policy cost more than $1,000 a year. Another important change: Over time there's been a fundamental change in the nature of term policies. Years back, the standard product was annual renewable term, on which the premium rises inexorably each year. Today, the bread-and-butter offering is level-premium term, with ..." Full StoryWhat Are The Diffeent Kinds Of Term Insurance?
If you’re considering term life insurance, keep in mind that there are many different kinds of term life insurance. This includes decreasing term insurance, increasing term insurance, increasable term insurance, decreasing term insurance and renewable term insurance among many. It’s important to find the type of term life insurance that fits your needs best. Decreasing term life insurance reduces the coverage of the policy year on year. The policy holder usually requires the cover for a loan repayment such as a mortgage or to cover a potential inheritance tax bill. Increasing term life insurance is just like basic term life insurance, except that, as the name suggests, the level of coverage increases. Premiums increase along with the level of coverage as well. Increasing term insurance ... Full Story
Does Permanent Life Insurance Make Sense?
Most Life Insurance Buyers Still Don't Get It. Permanent life insurance can be so valuable to most insurance buyers. About 20 or 25 years ago most people started thinking about buying term insurance rather than permanent life insurance. The common beliefs were that you could get so much more insurance for your dollar so that was the way to go. Was it? I sincerely believe that term insurance is the best type of policy for many people but serious consideration should be given to permanent plans like universal life, variable universal life, variable life and whole life insurance. There also is nothing wrong with starting out with term insurance and at a later date converting to a permanent insurance plan... The arguments of buying term ... Full Story
How Much Life Insurance Do You Need?
Insurance is the means that an individual or a family can use in order to help them prepare against the emergencies of life. Life insurance is the form of this preparation that helps in the worst emergency – the death of a loved one. This could be for anyone in the family, or for the main breadwinner. Because so many things can happen to people, mostly unexpected, we want to be ready in the event that it does happen - but hope, too, that it never does. This article will show you how to determine just how much life insurance you should have in order to be prepared in the best way possible. When determining just how much coverage you should have, here are some ... Full Story
Buy Term Life Insurance And Invest The Difference?
To me, insurance is insurance and investment is investment, so to by term life insurance and investment and invest the different is always the right choice.
"It's been debated for generations. Term life insurance versus permanent life insurance? Which one is "better"? In recent years a new concept has crept into the debate: rather than choosing a permanent life insurance policy, you purchase a lower cost term insurance plan and invest the difference, usually in mutual funds. This approach may be well suited for some people, but for others it may not make sound financial sense. You'll want to make an informed decision, so it's best to discuss your needs and your options with an insurance professional. Before you make up your mind, you'll want to consider the following questions: Which Type of Life Insurance is Best for You? How Long Do You Need Life Insurance Coverage? Do You Prefer Renting ..." Full StoryWhat Is Level Term Life Insurance?
Level Term Life Insurance is a cost effective way of arranging life assurance. Level Term Life Insurance is often used for family protection purposes by providing life insurance cover in the event of the death of the life or lives assured for the benefit of the surviving spouse and, if there are any, the dependant children. The amount of life cover provided is often agreed upon after receiving advice from a financial adviser who will assess a family's requirements taking into account a number of factors. The amount of Level Term Life Insurance remains level for a specific term i.e 25 years and is arranged normally on a sole life or joint life first death basis with the premium often remaining constant throughout the term ... Full Story
How To Choose A Good Term Life Insurance Company?
Any kind of life insurance can be a scary thing to think about. Let’s face it – aside from withdrawing from or cashing in your life insurance policy in the event of an emergency or in times of financial strain, the only other time the money of a life insurance policy will be used is when you die. Because of this scariness, many people put off choosing a term life insurance company. Add to this the fact that many people simply do not know what to look for in a term life insurance company, and the result is that a lot of people just don’t purchase needed term life insurance policies for themselves. However, we can help you painlessly choose a term life insurance policy ... Full Story
Different Types Of Life Insurance Plans
Basics: There are 4 parties in any life insurance policy. The policyholder is the one who is buying the policy, the insured is the one against whose death the policy is made, the insurer that is the insurance company and finally the beneficiary is the person who will get the proceedings of the life insurance policy. It is mandatory that the policyholder should have a legitimate reason for insuring a person’s life. Types of Life Insurances: 1. Temporary Life insurance. This policy is also called term life insurance that has coverage for a fixed period of time. The policyholder needs to pay a premium for a fixed period of time for which the insurance company provides insurance coverage. This type of policy does not accumulate ... Full Story
How Your Life Insurance Rate Is Determined
In order to get a life insurance rate quote, you must first determine what kind of life insurance policy you want to purchase. There are two basic kinds of life insurance policies – term life insurance policies, and whole life insurance policies. Term life insurance policies offer life insurance coverage for a “term.” This means, your life insurance coverage will last for a certain period of time. Most term life insurance policies offer coverage anywhere from five to thirty years. How long your term life insurance policy lasts is up to you. Term life insurance policies appeal to people because of the lower life insurance rate quote. Term life insurance policies are usually less expensive than whole life insurance policies, because term life insurance policies ... Full Story
25-Year Term Life Insurance May Be A Good Choice
Yes, 20 to 25 years of term life insurance coverage is enough protection for a 30-year old in his highest earning years.
"A young person graduates from college, has a good job and is considering getting married. He has a good solid income and he is very aware of the expenses he will have to face in the near future. He will need to think about buying a home and it is likely that the new couple will be thinking about having a child before long... With all these things come the additional responsibility of securing the family's future. He wants to know that his young family will be able to maintain their same standard of living in the event of his premature death. He knows he must buy some life insurance. His wife is also a college graduate and she earns a good income. Nonetheless he ..." Full StoryQuick Facts About Viatical Settlement?
A viatical settlement is the sale of a life insurance policy by the policy owner, before the policy matures. Such a sale provides the policy owner an immediate cash settlement. Generally, viatical settlements involve insured individuals with a life expectancy of less than 5 years. Life settlements, also called senior settlements, are similar to viatical settlements, but involve the sale of as life insurance policy when the owner has a shortened life expectancy, but the life expectancy is over 5 years. In countries without state-subsidized healthcare and high healthcare costs such as the United States, this is a practical way to pay extremely high health care costs that severely ill people face. Often this is the only means of obtaining the funds necessary to pay ... Full Story
Decreasing Term Life Insurance: Quick Facts
Decreasing Term Life Insurance is a cost effective way of arranging life assurance. Decreasing Term Life Insurance is usually taken out to repay such things as loans and mortgages in the event of the death of one of the lives assured but can occasionally also be used to provide family protection cover. It should be noted that the amount of Decreasing Term Life Insurance decreases during the term of the life insurance policy normally approximateley in line with the amount the loan or mortgage decreases so there should normally be sufficient life insurance cover in place to clear the liability in the event of the death of the life/lives assured during the policy term. The premium normally remains constant but the amount of the premium ... Full Story
What Is Adjustable Life Insurance?
Adjustable life is a type of permanent protection that lets you change the amount of your premiums. You can also raise or lower the face amount of the policy, or shorten the protection period. If you increase the death benefit, you must prove that you are still insurable. Full Story
How To Save On Life Insurance
SmartMoney offers 10 time-tested tips on how to save on life insurance.
"1. Forget Corporate Loyalty If you get some life insurance as a job benefit, that's fine. But that should never be all you have. You can't count on keeping it if you lose your job or become disabled and can no longer work. There's no federal law that says your old employer must allow you to keep the coverage, even if you foot the bill. So it's a good idea to use any life insurance you get from work as a supplement to what you buy on your own. 2. Be Sure to Negotiate Says adviser Michael Chasnoff, who helped Campbell set up the policy: "When I started in this business, I would have never thought to question what an insurance company told a client ..." Full StoryTerm, Whole, Or Return Of Premium. Which Life Insurance Is Best?
SmartMoney's recommendation is term life insurance, and I cannot agree with it more. Don't confuse insurance with investment. Let term insurance take care of your insurance needs, and get your investment portfolio in order to get the return you want.
"Life insurance comes in three flavors. Term insurance offers plain-vanilla protection at a low cost. Then there's whole life, which has a savings component. A third type, the return of premium, is essentially a hybrid of the first two. Here at SmartMoney.com, we generally recommend term life, as its low premiums allow consumers to get maximum coverage at little cost. (They can then invest on their own the savings they'll reap by forgoing pricier options.) But don't just take our word for it. Before you head to an insurance broker's office, you should be familiar with the pros and cons of each policy type. Insurance agents are notorious for their heavy-handed sales tactics. Arming yourself with some knowledge ahead of time is the best way ..." Full StoryWhat Is "Return of Premium" Term Life Insurance?
Have you heard about "Return of Premium?" Here is what it is when it comes to term life insurance:
"In most types of term insurance, including homeowners and auto insurance, if you haven’t had a claim under the policy by the time it expires, you get no refund of the premium. Your premium bought the protection that you had but didn’t need, and you’ve received fair value. Some term life insurance consumers have been unhappy at this outcome, so some insurers have created term life with a “return of premium” feature. The premiums for the insurance with this feature are often significantly higher than for policies without it, and they generally require that you keep the policy in force to its term or else you forfeit the return of premium benefit. Some policies will return the base premium but not the extra premium (for ..." Full StoryTerm Life Insurance: Level Term vs Decreasing Term
Do you know the difference between level term life insurance and decreasing term life insurance?
"Term insurance comes in two basic varieties—level term and decreasing term. These days, almost everyone buys level term insurance. The terms “level” and “decreasing” refer to the death benefit amount during the term of the policy. A level term policy pays the same benefit amount if death occurs at any point during the term." Full StoryWhy Should You Buy Life Insurance?
Insurance Information Institute explains why you need life insurance.
"1. Replace income for dependents If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially. Insurance to replace your income can be especially useful if the government- or employer-sponsored benefits of your surviving spouse or domestic partner will be reduced after your death. 2. Pay final expenses Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts ..." Full StorySponsors
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