Life Insurance is a good way to protect your future. You should look at the basics of life insurance before delving into a policy however. Not all policies are the same. It can be overwhelming at times, with all the terms and factors to consider.
Why do people buy life insurance? They buy life insurance for the pure fact of leaving family or a business with plenty of money to manage life without them. People want to leave this earth knowing there assets are protected. If you have no family, business or charity you wish to take care of then you should not invest.
The most popular of them all is Term Life Insurance. Term is simple and affordable to most budgets. Term Life is buying Life Insurance for only a specified length of time. Terms can be 10,20 or 30. If you out live your term the policy pays nothing.
There are pros and cons to a term life plan. One disadvantage is that once your term is up you lose the policy. So if you out live the term nobody gets anything once you die. The good thing is if you get ill during the term premium and policy do not change for the life of the term.
Whole life is another popular choice. With Whole life the policies will receive a predetermined payoff. The policy never ends as long as premiums are paid. Premiums never end until you die. The can change year to year as well.
Whole life also earns a cash value. Cash value is different then face value. Cash Value - the amount you would get at the time you surrender the policy. Face Value - the amount guaranteed to pay to your dependents if you should die.
Univerasal Life Insurance is a bit more complicated to the new purchaser. The most basic way to describe is that the money you pay in can be invested into stocks and money markets. The proceeds contribute to the death benefit. If your investing plunges your dependents are still guarnteed a minimum death benefit.
Variable Life is similar to Universal. Only the death benefit varies depending on how your investments do. So you are not guarnteed a minimum death benefit for your dependents. This kind of plan is not for the unseasoned investor.
Why do people buy life insurance? They buy life insurance for the pure fact of leaving family or a business with plenty of money to manage life without them. People want to leave this earth knowing there assets are protected. If you have no family, business or charity you wish to take care of then you should not invest.
The most popular of them all is Term Life Insurance. Term is simple and affordable to most budgets. Term Life is buying Life Insurance for only a specified length of time. Terms can be 10,20 or 30. If you out live your term the policy pays nothing.
There are pros and cons to a term life plan. One disadvantage is that once your term is up you lose the policy. So if you out live the term nobody gets anything once you die. The good thing is if you get ill during the term premium and policy do not change for the life of the term.
Whole life is another popular choice. With Whole life the policies will receive a predetermined payoff. The policy never ends as long as premiums are paid. Premiums never end until you die. The can change year to year as well.
Whole life also earns a cash value. Cash value is different then face value. Cash Value - the amount you would get at the time you surrender the policy. Face Value - the amount guaranteed to pay to your dependents if you should die.
Univerasal Life Insurance is a bit more complicated to the new purchaser. The most basic way to describe is that the money you pay in can be invested into stocks and money markets. The proceeds contribute to the death benefit. If your investing plunges your dependents are still guarnteed a minimum death benefit.
Variable Life is similar to Universal. Only the death benefit varies depending on how your investments do. So you are not guarnteed a minimum death benefit for your dependents. This kind of plan is not for the unseasoned investor.
About the Author:
If you are searching for NO MEDICAL EXAM REQUIRED LIFE INSURANCE then contact agent Jeff Cline. He is a very knowledgable professional and can assist you find what you need. can i sell my term life policy?, need assist with this? Jeff can assist with that also. Give him a contact morning, noon or night at his toll free number 866-526-9669.
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