Term Life vs. Whole Life Isurance
Term Vs Whole Life Insurance
Many people who are shopping for a life insurance policy are still confused by the difference between whole and term life! This is one fundamental thing to understand in order to purchase the right type of coverage. Lucky for us, it is actually pretty simple.
Permanent Policies
The first type of life insurance was whole life. Sometimes it is called straight or ordinary life. The name pretty much sums up one major difference between it and term. It will cover a person for their WHOLE LIFE as long as the policy is kept in force. There is no expiration date. Most of these policies do say they will remain in force until age 100, or some advanced age like that. At that time, they will pay out the death benefit even if the lucky insured person is still alive.
Whole life policies also can grow a cash value over time. This cash account may be useful too. It means it can be borrowed against, cashed in, or even used in settlement transactions. But of course, these permanent policies are more expensive than term.
Temporary Policies
Term, on [...]
What is Different About Life Insurance for 50+?
Some of you may know that I also run the Over 50 Website. A frequent topic of conversation over there is the possibility of obtaining life insurance over age 50. The first thing that people want to know is why older people need life insurance.
Some Life Insurance Needs at 50 Plus!
Funerals are expensive. Prepare financially for final expenses. Estate Transfers. This may be particularly important if a business or home is involved, and other heirs must be compensated besides the one who will retain the asset. Settle debts Leave an inheritance or legacy. Provide for a spouse or others.
Can Older People Find Life Insurance?
I have some good news. Because Americans are, on average, living longer and more productive lives, many insurers hare happy to extend benefits to older people, and to offer those policies at lower rates!
You can find out which plans are best for you with over 50s life insurance quotes here. Since insurers vary policies and premiums by local areas, it is important to find out which companies are competitive in your town or city. Also, the type of plans that are available for [...]
What is Universal Life Insurance?
Universal life is the newest form of life insurance and it is also a form of permanent life insurance, like whole life. But it is both more complex, and more transparent than whole life. It is also the most flexible form of life insurance because you can adjust your premiums, and even your coverage amount!
Permanent Life Insurance – You will have coverage as long as the policy is kept in force. Keeping a policy in force usually means that premiums are paid, or the policy is paid up. The insurance part and the cash value part of universal life insurance are unbundled. A portion of your premium pays the life insurance, and another portion can acrue a cash value. This cash value can earn interest at a set rate or be tied to a market index like the S&P 500. The cash value may be borrowed against or withdrawn without terminating life insurance coverage. Keep in mind that the life insurance portion must be funded or coverage will not be kept in force. You have the option to make flexible premium payments. You can pay a minimum payment, target payment, or maximum payment. You [...]
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