Life Insurance - Research Before You Buy
There are essentially two kinds of life insurance. Or, as some call it, "death insurance" or "funeral payments". In any case, both have the same purpose." to give your family some money to replace what they are losing with your death.
Term is bought more frequently than any other kind. It is in force for a certain period of time, the term, and coverage can be purchased for 5, 10, 15, 20, 25 and in some cases, 30 years.
Term costs less because the carrier is assessing their risk as to whether or not you will pass away during the coverage years. For your family to see any money, you need to die during the tenure of the coverage.
They charge depending on your level of insurance risk and then they determine how likely you are to die during the time they are covering you. Your premiums will increase if you are over 50, have heart problems, survived cancer, or are a smoker - these will surely put you into a high risk category.
Cash value insurance is another option. Also referred to as whole or universal life, this type of insurance is much more expensive for even less coverage. Unlike term, a policy will cove you you for your whole life, but of course you are paying premiums for your whole life as well.
Cash value also comes with an investment option. You can select various funds and stocks to invest in and you are guaranteed a return on your investment. However, read the small print in your policy, usually within the first few pages, that discusses your investment return. Even though the company might promise you a return of about 15%, you personally only get about 3-4% - the company keeps the rest.
Be aware that your survivors don't get everything: the cash value and the premium! They get the death benefit only - the face value of the policy. The company keeps everything else for themselves and makes it hard for you to figure this out until it's too late.
Keep in mind as well that these policies do not end up. "paying for themselves." You might get a letter from the insurance company saying you have no further premiums due, but that. 's because the company will start taking your premiums from your cash value savings. Either way, you still end up paying! - 23211
Term is bought more frequently than any other kind. It is in force for a certain period of time, the term, and coverage can be purchased for 5, 10, 15, 20, 25 and in some cases, 30 years.
Term costs less because the carrier is assessing their risk as to whether or not you will pass away during the coverage years. For your family to see any money, you need to die during the tenure of the coverage.
They charge depending on your level of insurance risk and then they determine how likely you are to die during the time they are covering you. Your premiums will increase if you are over 50, have heart problems, survived cancer, or are a smoker - these will surely put you into a high risk category.
Cash value insurance is another option. Also referred to as whole or universal life, this type of insurance is much more expensive for even less coverage. Unlike term, a policy will cove you you for your whole life, but of course you are paying premiums for your whole life as well.
Cash value also comes with an investment option. You can select various funds and stocks to invest in and you are guaranteed a return on your investment. However, read the small print in your policy, usually within the first few pages, that discusses your investment return. Even though the company might promise you a return of about 15%, you personally only get about 3-4% - the company keeps the rest.
Be aware that your survivors don't get everything: the cash value and the premium! They get the death benefit only - the face value of the policy. The company keeps everything else for themselves and makes it hard for you to figure this out until it's too late.
Keep in mind as well that these policies do not end up. "paying for themselves." You might get a letter from the insurance company saying you have no further premiums due, but that. 's because the company will start taking your premiums from your cash value savings. Either way, you still end up paying! - 23211
About the Author:
When your trying to find Life Insurance quotes picking the correct place first can seem daunting. But to get the best costs on Life Insurance, you need to look around and compare. Go online to find the best costs now!
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home