Life Insurance

Term - This is simplest form of life insurance, no frills,bells or whistles. The policy is for a fixed time span,and it costs much less. There are 2 types of term life insurance.
Level Term - can be bought in 10 to 30 year increments and the cost remains the same level for that time span.
Annual Renewable - As you age,so does the costs, it goes up.

One neat thing about term policies is that is you want to, later on you can convert this in to a whole life policy without have to have a medical exam. If you are in poor health, this may be the choice for you….but it is a bad choice for almost everyone else.

Whole life insurance

Whole life is term insurance with investment portion and have two key ways to pay.

Mortality charge - is the part that pays for the insurance coverage, and with a reserve that earns interest.
The older you get,the portion that goes into the reserve decreases while the portion that pays for the mortality charge increases.

Cash Value - is just that, this is what you would get if you cash . Whole life is very expensive,if you are on a budget,you may not get all the coverage one needs.

Universal

Universal - is sort of like Whole life but it combines the insurance with savings.
Accumulation fund(savings) earn monthly interest used to pay the mortality charge.
If money is tight, you can skip a savings fund. the key is to put savings more in the early years of the policy. There are some problems with universal, if you don’t want to pay high charges later ….plus if you drop the policy you may have to pay fees.

Variable Life Insurance

This type combines savings and mortality charge with a few options offered by the insurer. The savings is usually investment structured like a mutual fund.

There are 2 types of variable life, one is a fixed payment .
The other is variable universal life , this has a flexible payment like universal life.
Keep in mind that, variable returns will fluctuate with the stock market.This type is not recommended for people that are on a fixed budget or may need money fast.

Return of Premium

Personally, I like this type of insurance here is why.
Return of premium is a cross between term life and whole life..If you buy a policy for
a set amount of time say 25 years and make your payments faithfully.
If you pass away during that time, your beneficiary will be paid face value of the death benefit.

This is the part I like, ok what if you live past the 25 years you selected??
Well, the insurer will send you a TAX FREE CHECK….yea you heard me right.
He or She will send a tax free check for the full amount that you have put in for the
25 yrs.that’s a lot of loot! This is a win/win situation.
Although there is a downside, the price. For them to guarantee you the premiums at the end of the 25 years(in the example) your insurer charges you an additional 50% over the cost of a standard term policy.

Contestable Period

The time period during which the insurer is not obligated to pay a claim (usually two years), because of material misrepresentations found in the application. A policy becomes “incontestable” when the contestability period is over.

Life insurance is just that, life after your death for others(your family to enjoy).

Life Insurance… the gift that keeps on giving after you are gone.

Get a Free Life Insurance Quote Today

Enter Zip Code