Life Insurance Basics; What You Need To Know About Life Insurance
Need life insurance basics?
1. Term life insurance will cover you for a period or ‘term’ of time. Get an in-depth term life insurance explanation.
a. Usually 10, 20, or 30 year terms.
b. When the term is done. The insurance is gone. All money put in is gone too.
c. Face amount stays level for length of term.
d. Inexpensive compared to whole life insurance. Learn about combined policies such as insurance quotes homeowners health life.
3. Whole Life insurance will cover you for your entire life.
a. Premiums never go up. Some would think that this would make it superior. But whole life is expensive. That is its main drawback.
b. Face amount stays level.
4. Variable Universal Life is similar to whole life in that it is permanent. The premiums are not fixed. Premiums are tied to the separate account investments such as mutual funds. This account is selected by the policy holder. If the market is down you may be required to invest extra money to keep the policy paid up.
5. Universal Life insurance is a permanent policy also. Premium payments above the cost of insurance are credited to the cash value. Usually also based on a market index to establish expenses and interest.
6. Annuities- I don’t know how to say this nice. I hate annuities. The only people I know who really love them are the agents that sell them. (and yes, I am licensed to sell Annuities) Commissions are very high for the salesperson as well as profits for the insurance company. In my opinion a bad deal overall.
a. By definition an annuity is the systematic liquidation of an asset. There are better ways to liquidate your assets.
b. Nursing homes, essentially do the same thing.
Long story short… Most people are best served with a Term policy. If you do not plan to ever own a home and have no investments then Whole life product would be a good fit for you. Universal life products tend to be more complex in nature and deserve their own standalone article. Click on the link below to see other articles that may help you with life insurance basics.
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Other Learning Articles:
• Voluntary Group Term Life Insurance
• Advantages of Term Life Insurance
• Life insurance basics not what you were looking for? Try the BLOG
• Compare insurance Life Term Whole
• Whole Term Life Insurance UK
• Return to Life Quotes Insurance from: Life Insurance Basics