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Whole life insurance is the most expensive type of life insurance. The advantages of a whole life insurance policy include guaranteed death benefits, guaranteed cash values, fixed annual premiums. The primary disadvantages of whole life are premium inflexibility,the internal rate of return in the policy may not be competitive with other savings alternatives, and the cash values are generally kept by the insurance company at the time of death.
Term life insurance provides life insurance coverage for a specified term of years in exchange for a specified premium. The policy does not accumulate cash value. A policy holder insures his life for a specified term. If he dies before that specified term is up, his estate or named beneficiary receives a payout. If he does not die before the term is up, he receives nothing.
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I have term life insurance should i also have whole life insurance?
The answer to that question is in the love you have for your family and the character that you do or do not have. Here is the question...Do you want to have life insurance in force when you die? Do you want to have insurance to pay for the burial, tombstone, cremation, all final expenses, left over medical bills, final ride in the ambulance, cemetery plot, perpetual care, probate, estate taxes, etc etc? All is well with term insurance if it is in force when you die, but like most people you don't know when you are going to die and usually it is after the term insurance has expired or you let it lapse because you can't afford it anymore or your future health prevents you from buying any more. I suggest to ALL my clients that they should have at least a burial policy as a minimum. Term insurance is pure profit for the insurance companies as only 2% of all policies ever pay a death claim. Think about it...AnswerUnderstanding the differences between whole life policy and term life policies will help you to see whether you would like to purchase both kinds of policies for your specific situation. Whole life insurance suits the person who has expenses that do not diminish over time such as estate taxes, etc. Whole life insurance can also work as an investment. There is cash value attached to whole life insurance after a certain number of years, which the owner can avail of in times of need.In comparison, term life insurance offers no cash value. And once the term is over you do not get any refund on your premiums, unless you opt for a ROP term policy.Term vs. Whole Life Insurance may help you grasp the features of both these policies.
What is the cash surrender value of a term life insurance policy?
There is no cash surrender value since the policy pays only on death. Source: http://www.my-life-insured.com/term-vs-whole.htm
Discuss the criteria insurance companies use for underwriting on life insurance?
They look at the individuals Health, smoking status, prescriptions, avocation, sports activities (racing kyaking, skydiving, etc), drug use, family history, amount of insurance requested vs. the need and more.
Best rates for term life insurance?
It varies from company to company on different amounts, your age, your health, your smoking status and other variables. Your best bet is to speak with a true "broker", talk about your particular situation and obtain a number of quotes vs the insurance company coverage and offerings. While one company quotes a lower price, the actual offer may be higher once you have applied so be careful. Don't forget to look into Waiver of Premum and Return of Premium.AnswerThe best rates for life insurance can only be found by shopping around for life insurance. Rates differ considerably from company to company and therefore the more you shop, the more likely you are to find the best policy at the most affordable price. Another crucial factor to consider is the financial integrity of the life insurance company. Choose a company with a good rating by A.M. Best.
Unit linked product vs traditional product of life insurance?
unit linked products (ULIP) are actually a mix of Mutual Fund (MF) and Life Insurance. Its good if you want to reduce hassel of keeping track of both in your portfolio, however remember financial institutes who bring ULIPs actually charge more fees, especially in first few years of investment, than they do in individual insurance products and MFs. Therefore if you can spare some time for your investment, it is best to buy 'good-old' insurance products. And invest further in MFs to gain max benefits.
What is the difference between term life insurance vs whole life insurance?
A term life insurance is during the insurer's life only. When he or she is gone, then the insurance ends. The whole life insurance on the other hand has what the term life insurance covers plus more.
what are the advantages of long term life insurance vs whole life insurance?
The basic difference between long term life insurance and whole life insurance is that a term policy is life coverage only and this is also considered an advantage. One can buy a long term life insurance for periods of one year to 30 years, whereas whole life insurance is a combination of a term policy with an investment component.
What are the main differences of term life insurance vs whole life insurance?
A life insurance is only good for life coverage, when you die an amount of money is given. Whole life insurance includes investments you have. Such as stock market.
Where can one learn about whole life vs term insurance?
The best place to find out information about whole life insurance versus term life insurance is from Suze Orman. She has books to read, a show to watch, and an internet page to browse questions and information on.
What are the benefits of whole vs term life insurance?
A term policy is life coverage only and on the death of the insured it pays the face amount of the policy to the beneficiary. Whole life insurance combines a term policy with an investment component usually used for retirement.
Where can one get information to decide about whole life vs term life?
One can get information to decide about whole life versus term life by speaking to their broker of Life Insurance. Once can personally inform themselves by reading Smart Money or Money MSM.
Where can one find information on term life vs whole life insurance?
For impartial advice on term life versus whole life insurance, a site called smart money offers lots of information on this. If you would prefer face to face advice book in with your local CAB as you know they will not be trying to sell you a product but advise you on what is the best path for you.
What is vol life vs group term life?
Voluntary term life insurance plan is elective and generally paid by the employee, whereas group term life insurance is employer paid, and all employees are included.
What is the best term insurance rate for a 25 year old?
There are a few variables that must be considered when purchasing life insurance. Some of these include the person's age, face value of the insurance, whole life vs term, and smoker or non-smoker. In Canada, a non-smoking 25 year old male can but 100,000. 20-year term life insurance through Manulife Financial for $12.12 per month.
How long does it take a bankrupt insurance co to do a runoff?
Depends on the type and length of the policies (yearly car policy vs. mortgage insurance vs. whole life).
I have term life insurance should i also have whole life insurance?
The answer to that question is in the love you have for your family and the character that you do or do not have. Here is the question...Do you want to have life insurance in force when you die? Do you want to have insurance to pay for the burial, tombstone, cremation, all final expenses, left over medical bills, final ride in the ambulance, cemetery plot, perpetual care, probate, estate taxes, etc etc? All is well with term insurance if it is in force when you die, but like most people you don't know when you are going to die and usually it is after the term insurance has expired or you let it lapse because you can't afford it anymore or your future health prevents you from buying any more. I suggest to ALL my clients that they should have at least a burial policy as a minimum. Term insurance is pure profit for the insurance companies as only 2% of all policies ever pay a death claim. Think about it...AnswerUnderstanding the differences between whole life policy and term life policies will help you to see whether you would like to purchase both kinds of policies for your specific situation. Whole life insurance suits the person who has expenses that do not diminish over time such as estate taxes, etc. Whole life insurance can also work as an investment. There is cash value attached to whole life insurance after a certain number of years, which the owner can avail of in times of need.In comparison, term life insurance offers no cash value. And once the term is over you do not get any refund on your premiums, unless you opt for a ROP term policy.Term vs. Whole Life Insurance may help you grasp the features of both these policies.
Difference between term and whole life insurance?
Term life insurance provides protection for a specified period of time (e.g., 5, 10, 15, 20, or 30 years) at an affordable cost but premiums increase drastically with age. Whole life insurance provides protection for your entire lifetime and accumulates a cash value that the policy owner can borrow against. Term: Want to protect your family from financial hardship in the event of your death. You are underinsured and want to supplement your coverage Whole Life: Have a long-term need for life insurance. Want to accumulate cash value to borrow against to provide funds for education, retirement or other future goals Term: More affordable than whole life insurance. Whole Life: Premiums do not increase with age. Builds cash value. Term: Does not build cash value. Coverage ends when policy expires. Premiums may increase with age and look negative in later years compared to a whole life policy where cover increases as cash value grows. Whole Life: Initially higher premiums than term coverage, however later or in older age it pays off. A well designed whole life plan would ideally serve insurance needs of a person, if they can afford it. Start when no or low loan emi's are there, saving is a habit like spending, after all the money returns to you. The biggest grouse by pro equity market + term insurance is the earning of the agent. However when buying something you should see what you get not the advisor as everyone in this world has to be paid for work done, just as when buying a car, or a house.
