compare whole life and variable life insurance advice

With the convenience of the Internet, the process of purchasing term life insurance, has become much simpler. The following steps will help take the mystery out of life insurance along with helping you get the insurance plan that fits your needs.

Decide what kind of term life insurance to buy. Depending on the purpose, you may want Universal, term or whole life.

Do some personal analysis to determine the amount of whole life insurance coverage you actually need. You can either compute an income multiple your annual earnings multiplied by at least three and preferably five or you can add up your outstanding over all debt and estimate your family’s needs.

Take advantage of our user friendly online service to complete a profile and then either shop rates yourself from the online rate comparison chart or request a local agent to prepare rates for you.

While waiting for your variable life insurance cost quotes to be prepared, you can check the ratings on several companies. You want a organization that is strong financially, has been in business a long time and that pays claims in a timely manner.

If you decide to meet with an broker personally, be prepared to ask some pointed questions:

To what extent would that agent represent you?

Does the firm have policies that will last to age one hundred or even to one hundred twenty.

Does the firm have radically higher rates for smokers

Does the firm require a visit from a paramedic? Some companies only require a paramedical exam and doctor’s report on amounts of 100,000 or more.

Does the firm have an “easy issue” insurance service that requires less medical underwriting and that pays without a two year waiting period?

What payment process does the companies use? Most require you to make the first payment and then authorize automatic bank draft for future payments.

Strongly consider using an agent. life insurance does not have standardized language from one companies to the other. If you try to do it alone, you could easily end up with something like “modified term life insurance,” a type of universal life insurance that has cash value and insures you to age hundred, but also has premiums that increase at a predetermined frequency. If an agent misinforms you regarding a insurance policy, the firm is responsible. If you make the decision on your own, you bear the responsibility even if you don’t understand the terms.

Once you have decided on a term life insurance insurance service and answered the questions for the application, all you have to do is wait. You still aren’t fully committed. By law, you have a 30 day free look from the time your universal life insurance insurance plan is delivered to you. If you see something you didn’t expect or didn’t want, you can return it and have your first payment refunded.

Usually, a little planning, an open mind and an understanding of the process can virtually guarantee a universal life insurance insurance service that will satisfy you and your family for many years to come.

 

How Much Life Insurance Do You Need? whole life insurance quote free online quote compare

One of the costliest risks that families face is the death of a breadwinner (worker). This is especially true if a spouse and/or children depend upon that person for all or part of their support. To protect family members against financial disaster, consider the purchase of life insurance.

There is no simple formula to determine the amount of universal life insurance uk quotes you need. Many factors must be considered.

Not enough term life insurance and you may not provide a reasonable living for your family members after death. Carry too much and you may not enjoy a reasonable level of living while you’re alive. Many life insurance companies have worksheets to calculate whole life insurance needs. They total up a family members economic needs and subtract available resources.

Generally include a total for lump sum cash needs such as paying the mortgage, debt repayment, and final expenses. There are also calculations for the income needs of family members and a surviving spouse. After the total amount of money needed is calculated, existing universal life insurance and assets are subtracted to determine the additional amount of universal life insurance required.

Once you have mathematics the amount of coverage that you need, choose a variable life insurance product that is right for you. There are two basic types of coverage which, in one form or another, are the basis for virtually all forms of whole life insurance. The two basic types are whole life insurance and permanent (cash value) term life insurance.

variable life insurance, simply stated, is universal life insurance that provides protection only for a specific period of time–this period of time is called the term. whole life insurance has no cash value or investment value. whole life insurance is one of the best ways to solve an variable life insurance. need having a short or limited duration (e.g., the years when children are dependents). It generally also has the lowest up front premium cost.

whole life insurance offers a specific amount of protection for a given period of time. Each time the insurance policy is renewed, the premium increases to reflect the additional risk as an insured person ages. Some types of universal life insurance, called level term, may have agiotages which only increase every five or ten years or stay level for a certain number of years or until a given age. The longer the time of the guaranteed agiotage, the higher the initial insurance premium will be.

Decreasing term was developed for people having an whole life insurance need which becomes smaller over time. It is most commonly used when there’s a declining degree of financial responsibility, such as a home mortgage. With decreasing variable life insurance, the level of protection declines over time, but the insurance premium remains constant.

Permanent whole life insurance combines protection for the entire life of the insured person along with a savings component known as the cash value. Annual insurance premiums are fixed for the life of the policy and are based on assumptions about interest and mortality rates. These premiums may be payable for life or for a limited number of years. Common forms of cash value life insurance include life insurance, variable life, and universal life insurance. The main difference between these different forms is in the method of cash value buildup.

Most People Don’t Have Enough variable life insurance.

An agent selling whole life insurance may tell you to “buy now” because your premium (insurance cost) will cost more later. Others argue that if you don’t need variable life insurance now, saving your money and investing it is better. This may be true. It depends on your ability to save and your health. Before you decide to put off buying now, consider your chances of getting an illness or injury later in life that could make you uninsurable.

Children don’t need life insurance unless they are family wage earners. You, as head of the household, should buy life insurance on your life to protect your children in case of your early death. Again, there is one exception. If you get support payments for a child and these are important to your family’s income, you may want to buy variable life insurance for that child.

Say you’ve decided you need whole life insurance. How much is enough? There is no simple formula that tells you the right amount.

One way often suggested to figure how much whole life insurance you need is to use a formula. Some experts suggest buying whole life insurance equal to five times your yearly income. Using this formula helps you buy enough universal life insurance for your family’s current money needs. This formula assumes that there is group life insurance from work for an amount equal to one year’s salary. It also assumes that the person who will get the universal life insurance payment is eligible for social security survivor benefits.

If both husband and wife work, buy life insurance on both. You need more universal life insurance on the person with the highest income.

What is whole life insurance?

insurance is generally the least expensive and least complicated type of insurance. It provides variable life insurance protection for a specified period of time, such as 10, 20 or 30 years.1 If you die within the term period and the program is in force, a death benefit is paid to your beneficiary. If you are still living at the end of the term, protection ceases unless your life insurance policy is renewed. There is no “accumulation” element, or cash value with life insurance

Who’s it for?

People with a temporary need for variable life insurance protection.

Those who need a large amount of insurance protection but have limited budgets.

People with specific business needs (e.g., business owners who want to cover the life of a key employee who has a set number of years until retirement).

Benefits of universal life insurance

It provides life insurance quotes protection for a low cost (at least initially).

If your needs change, most whole life insurance policies allow you to convert to a permanent Term Life Insurance service without having to take a medical exam or provide other information about your health.

insurance is a good way to supplement other coverage when you have added financial responsibilities for a given period of time (e.g., mortgage, college expenses).

Death benefits are generally received free from income tax.

Things You Should Consider:

Premiums generally increase with age and they could become unaffordable later in life. There is no cash-value element with whole life insurance, so you miss the tax-deferred growth of the cash value of permanent whole life insurance policies, such as insurance.

Once the term period expires, unless you renew your program, the Term Life Insurance coverage ceases and the program has no further value.