Term Life Insurance FAQ: What Sort Of Life Insurance Is Best For Me?
Since term life insurance cost so little it could be the perfect policy for today. I believe that everyone needs some life insurance at some time during their lifetime. The reason I feel so strongly is that I have seen families who had a breadwinner die without adequate coverage. I have known businesses that had no protection for their partners or shareholders when one of the owners died.
I, on the other hand, have known adequately covered families, corporations or partnerships. I have seen the faces of the heirs who were overcome by fear but on learning of the term life insurance policy that was on the life of the deceased spouse, partner or shareholder had a complete reversal of countenance.
In America today the economy is stressed to say the least. The uncertainty is getting to even those who up until now paid little or no attention to these matters. People know they just have to continue on until the problem turns around. They depend on their elected officials to take care of the problem. They still need to protect the family in the event of death. Term life is ideal for today, even if it is only for a temporary period.
There are several term policies to choose from. For the married couple with young children the longer term policies may be best. The 15 year, 20 year, 25 year or 30 year term policies would work very well. These policies may also be applied to married people with no children at all or those whose children are grown and now live on their own. the amounts would just be different, likely less.
For shorter term needs like covering college costs or may be guaranteeing that a loan is repaid one could use a 5 year or 10 year level term policy. In some cases the yearly renewable term, or increasing premium term policy, may fit.
If you own a house with a mortgage you may choose to take out a decreasing term policy that will last until your mortgage is paid off. The death benefit decreases as the balance owed decreases. If you have a large estate you may want to use your policy to offset Federal Estate Taxes. These taxes have been repealed but it will take until 2011 I believe for you not to pay any Estate Taxes at all.
As these term life insurance policies are quite inexpensive you will find that they can be quite useful. You may decide to keep these policies mentioned for the duration or you may choose to convert to permanent life insurance. As time goes by you may want to consider the combination policies like universal life or variable universal life or , on the other hand you may prefer a whole life policy combined with term insurance.
These permanent policies have cash values and may earn dividends which serve to offset the cost of the policies themselves. Dividends are not guaranteed but the larger and more established carriers tend to always pay a dividend.
More detailed information on Term”>Term”>http://www.lifeinsurancehub.net/term-life-insurance-3.html”>Term Life Insurance
Watch the video related to term life insurance
www.trustco.ca Term Life Insurance FAQs Frequently asked questions for Canadians What sort of life insurance is best for me? Question and answer from The Hughes Trustco Group in Canada Cheap Life Insurance in Canada The people who need term life insurance the most are often the ones who let it go or who put it off. In most cases, these are young families with children at home, and they put off buying a life insurance policy because money is tight for these families. Unfortunately, the …
Help answer the question about term life insurance
Usually what is the typical premium for Term Life Insurance?I am planning to go for Term insurance. Usually what is the premuim? (I know it will vary across different insurance companies, but I guess there wil only be a small varition across)
Say I need a cover of 25 lakhs for 25 years
About Author
For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable.
Donald’s website is: http://www.lifeinsurancehub.net
Related posts:
- Prudential Life Insurance – Alternate Ending Whenever you think of opting for Life Insurance Policies,...
- Is globe life insurance for kids a scam If permanent insurance with flexible premiums and options is...
- No Exam Life Insurance Quote Life insurance is an interesting product. It can be...
- life insurance rates without exam Term life insurance policies are written in such a...
- Affordable New Life Insurance for Kids! For some people, losing weight is pure vanity. Some...
Related posts brought to you by Yet Another Related Posts Plugin.
Posted by American Car Insurance on July 16th, 2008 filed in life insurance | 11 Comments »
Top incoming search terms for this post
11 Responses to “Term Life Insurance FAQ: What Sort Of Life Insurance Is Best For Me?”
Leave a Comment
-
Link Partner
July 16th, 2008 at 4:06 am
You can get cheap life insurance on our site… We have live quotes from 10 different insurance carriers. It’s fast and convenient.
July 16th, 2008 at 4:07 am
Just remember that “cheaper” isn’t always “better”. How often when we buy something do we go for the cheapest product. Not for cars, TVs, food, etc. So, when it comes to the “financial backing of our families” why are we looking for the cheapest answer. Smart Cars and McDonalds are cheap for a reason. So are most cheap Term policies. Buy a quality LI policy, be it Term or Perm.
July 16th, 2008 at 4:23 am
We have no idea. What's the GOAL of the insurance policy?
At 62, I'm assuming you have no minor children. If you have enough assets that your estate can pay for your funeral and cover your debts, why do you have insurance in the first place?
You need to define the exact GOAL the the insurance is to acheive, and THEN decide which policy meets that goal best. That includes, deciding how LONG you want to keep life insurance. If you never see a time when you don't need it, then whole life is the one to have.
Having said that, whenever you are shopping out for new insurance, or comparing prices, you do NOT want to let your current policy lapse, until your NEW policy is already in place – you might not even QUALIFY for life insurance now! There's no way to know, until you have the policy in your hands.
So. Define your goals. Select the tool. Comparison shop, and don't cancel the old policy, unless you have already replaced it, or have decided you don't need life insurance. Try this site
http://free-best-life-insures-comparator-usa.blogspot.com/
Here you can get quotes from different life insurance companies in your area, its the best way to find an affordable life insurance with a reliable company.
July 16th, 2008 at 4:32 am
a few questions for you one do you pay for your policy at work if you do then stop you do not want to pay for something now and then if you leave before you retire you are out of luck usually where that coverage would drop off so I would recommend instead just getting a term policy and using some of that money that you would have used for the premium at work and a little extra that you would already be paying
2 how old are you I would get as long as a term that you can afford because the fact that you cannot guarantee how healthy you are going to be in 5 year let alone 30 years
3rd I would tell you what I would do if I where you I would get a $100,000.00 UL policy plain and simple that rate would stay the same for the rest of your life, and then if I needed more then the $100,000.00 I would then get a term policy for the remainder in a term policy for the maximum amount of time that one the insurance company offers you and secondly that you can afford if you have questions and want to hear some rates IM me at rahnside and I can pull them up for you I or another Life Agent is Licensed in every state of the US and have over 20 AM Best A- or better companies
A Life Specialist
Rahn A. Sidebotham II
July 16th, 2008 at 10:34 am
The 20 times thing is typically a recommendation or suggestion more than anything.
As long as you can justify the amount that you are applying for then you can get any amount you want. For example, if there is a person in their 20s and they are a student in some kind of medical field or something that persons current income would be maybe $10,000/year. If that person can only get 20x their income at that point that wouldn't even cover their first years salary when they get out of school. In cases like this a person can apply for a larger amount to lock in the rate at that benefit amount and then they would likely need to include in the application mention something like "this client is currently a student is currently a medical student in the field of brain surgery and while thier current income is low, his income will be $XXX,XXX upon graduation. Given the current demand/shortage of doctors there is little reason to doubt the potential and justification of the amount applied for."
Example, when I started as a financial advisor I was working straight commission and there was no gaurantee I would be making any money at all. I applied for a substantial amount of insurance and explained my career aspirations, expectations and goals and that while the amount applied for was currently far exceeding what I needed to be covered for, in the long run it would be exactly what I need.
To answer your questions a little more directly, income is a guideline used and EVERY application is handled on an individual basis. If they weren't handled individually, the advisor themselves would be able to decide whether its approved or declined right there on the spot.
July 18th, 2008 at 12:36 am
It is a good idea to think about this now. And, yes you should get term life insurance because your employer's insurance is usually not transportable. Meaning you can't take it with you.
Why do you want insurance? What do you expect it to do for you? Do you really need it?
If you are single, you may not need it, or you may need quite a bit less than you think. Married, homeowners with kids- now you NEED it. Especially, if you do not have enough in liquid assets to cover needs for the next ten to fifteen years.
Look to companies who only use Level term insurance with no conversion policy, one policy to cover an entire household, and a policy that covers both existing children and future children for the same single premium. Be sure they will also complete a complimentary financial outlook survey for you, to be sure of you needs.
July 18th, 2008 at 2:40 am
There is no typical premium as it will vary based on your death benefit, duration of term, age, and health. Try re-posting this in the Indian Y! Answers to get more specific information and quotes in lakhs.
July 18th, 2008 at 10:41 am
Your best bet is to contact an insruance broker. Given your history of declined applications and medications you use, it is important to find a company that might not look at those things in their applications. Every company is different and has different requirements. A Broker can find a company that will suit your exact needs to make sure you put in a strong application.
Anytime you have any kind of undiagnosed condition or are on the waiting list for treatments you will almost always been declined for insurance. There are too many things that could go wrong, even if the condition isn't life threatening, there is a slim chance the treatments might be. I've seen applications get declined for something as simple as waiting to see a knee surgeon. Knee surgery is not a major thing, however, if there are complications it can get ugly fast as an example.
Secondly, cheaper is not always better…expecially given the details of your situation. You want to make sure you are dealing with a good company and a good product. Think about toys that were made in China….wicked cheap and look the same on the outside as if they were made in North America, but once you get them you uncover this little thing known as lead poisoning from the paint they used (nothing against China, just a good example of why cheapest isn't always better). Never surrender quality for price when dealing with financial products…this insurance could mean the difference between your family getting thousands of dollars or absolutely nothing but bills and debt.
July 18th, 2008 at 5:40 pm
OK, term is PURE insurance – a straight bet on whether or not you'll die, within a certain time period. I LOVE term insurance.
"Regular" life insurance would be whole life, universal, variable, etc – where they've added gimicky extras to it, at about 10X the price of term insurance.
Don't worry about the labels – think about what you want the insurance to do for you. PIck the product AFTER you've set the goal.
Me, I want my kids to be able to go through college, and hubby to hire a nanny, if I kick off. When the kids are grown, we have no more need for life insurance, according to MY financial goals, so we have term.
July 18th, 2008 at 5:44 pm
Any company having solid financial ratings (I recommend AM Best A+ or higher) is fine, as long as you are certain you'll only need term. Keep in mind that as your life situation changes, term may not be the entire answer. You need to consult with a financial advisor to determine the best solutions to your current situation, while keeping options open for the future. The key here is to do a proper analysis, and to ensure that the term you buy has adequate conversion options to secure your future insurability. The couple of bucks a month you'll save price-shopping term isn't worth risking your family's financial future.
July 19th, 2008 at 2:06 am
Term life insurance doesn't build any cash value. At the end of the term, you may be able to renew it or convert it into another life policy. If you die during the term, your beneficiary gets $100k. If you cancel the policy at anytime, you get no money back. You may get a refund of excess premiums you paid (depends on how often you pay, such as yearly payment).
I don't know your situation, but $100k coverage seems small. In the area I live, the average face amount my company issue is around $500k (national average is $275k) on husband and wife for a total coverage of $1 million.
Anyway, you might want to recheck if $100k is enough to cover your family's finances and also check if 15 years is all you need to build wealth for retirement.