by insurance | Dec 21, 2018 | Insurance Guide
Whole life insurance, also known as cash-value insurance is a basic and consistent type of permanent life insurance which remains in effect your entire life at a level premium. This life insurance is a good choice got you if you do not expect your life insurance needs to diminish over time. A portion of your premium goes into a reserve fund called cash value that builds up over the years your policy is in affect. Your reserve fund is tax-deferred and you can borrow against it, until you withdraw it.
The premiums must generally remain constant over the life of the policy and must be paid periodically according to the amount indicated in the policy. You may also have the option of a single premium — paying all of the premiums at once with a single lump sum. Your cash values will grow to equal the amount of the death benefit when you turn to age 100.
Although, whole life insurance is very expensive, and if you’re on a limited budget, you may not be able to afford all the insurance coverage you actually need. But the plus point is that the death
benefit is guaranteed as long as premiums are met. Also death benefit will never decrease if you don’t borrow against it.
Whole life insurance policy’s returns will fluctuate with the markets and will usually follow returns
available from other investments like equity mutual funds. However, if you decide to quit your policy, your cash value can be paid in cash or paid-up insurance.
Whole life insurance is most suitable for you, if you want to:
- use it as a tax and estate planning vehicle
- accumulate cash value for a child’s education or retirement
- pay final expenses
- provide money for a favorite charity
- fund a business buy/sell agreement
- provide key person protection
Before buying the whole life insurance, you need to think carefully about choosing your level of coverage. Too often people make the mistake of insufficiently covering or even worse, financially overextending themselves. This would be a tragic error with whole life insurance policy because defaulting on premium payments can mean policy cancellation and the loss of your entire investment. So be careful and make sure you:
- pick a life insurance policy that has a guaranteed cash value starting at the very first year
- choose the one with the highest cash value in the very first year
- consider “participating” insurance policies which can pay dividends, increasing your policy’s value by boosting both the total cash value and the death benefits
- beware of any insurance policy that levies “surrender charges” when you cancel
if you ever need to stop paying premiums, your policy lets you use the accumulated cash value of the life insurance policy to pay the premiums, thus keeping your coverage current.
by insurance | Dec 21, 2018 | Insurance
Term life insurance is the most common type of life insurance – it’s fairly easy to obtain and inexpensive. Over 150 companies in the UK offer some type of term life insurance, making it important to shop around and compare products.
Term life insurance is inexpensive as many policyholders will probably outlive the term of the policy. This means less financial risk for the insurance company – and lower premiums for the customer.
For many people, it can be the only type of life insurance they will need. Term life policies are generally either renewable or non-renewable – a renewable policy allows the policy to be renewed without taking health exams; a non-renewable policy requires the insured to reapply and re-qualify regularly.
When it comes to choosing term life insurance, the length of the policy will be one of your biggest considerations. Term life insurance is particularly flexible as it offers you the chance to choose the level of cover, as well as the length of the term – anything from one to thirty years or longer. In the UK, the average length of a life insurance policy is fifteen years.
From a cost point of view alone, a shorter term is generally less expensive – many people choose a five or ten year term. The insurance company is less likely to have to pay out on a short term policy – hence the lower cost.
A term life insurance policy can cost from as little as 1 pound a day, although typically a policy will cost from between £8 and £20 per week, depending on your situation.
It is particularly advantageous for short term needs such as covering the length of a mortgage or paying for your children’s higher education. For example, if you have a thirty year mortgage, a term of at least thirty years is a good idea – this ensures that your payments are protected throughout the course of the mortgage.
Take into account your age when you take out term life insurance. A longer term such as twenty years may be more appropriate if you are in your 20s or 30s, whereas a shorter term such as ten years if you are close to retirement age. If you smoke – and are trying to give it up – a shorter term is a better option.
Term life insurance is also cheaper if taken out when you are young and in better health. It can be more difficult and more expensive to obtain if you wait until you are in your 50s or 60s. Most older people have more health problems and may also have pre-existing medical conditions.
Term life insurance is also a little bit more expensive for men than women, as women have higher life expectancy. In the UK today, life expectancy is higher than it has ever been, according to the Office for National Statistics (ONS) – around 77 for men and 81 for women.
If you have been considering getting term life insurance, don’t delay any longer. It’s affordable and easy to obtain – and given that the average cost of a funeral in the UK is now around £1300, it’s a necessity for most of us.
by insurance | Dec 21, 2018 | Insurance
Whole life insurance quotes the most expensive kind of policies that are on the market due the fact of cash value over time. Whole life insurance is permanent life insurance coverage that lasts as long as you live and continue to make ontime premium payments. The reason that whole life insurance quotes are so much more expensive is due to the fact that the policy will have to pay out a death benefit when you die.
Whole life insurance quotes are available online from many insurance companies that have an online presence. Online life insurance quotes let you search for the life insurance policy that best suits your needs. When you log onto each site, you can read the information regarding the whole life insurance policies available and request free quotes. You should request at least three quotes so you can compare the different rates.
When you compare the online whole life insurance quotes, the cheapest is not always the best one to choose. They are quite affordable because the payment of premiums stretches out over a longer period of time. When you are comparing the online life insurance quotes you receive, you shouldn’t just think about the amount of the monthly premium but the length of time that you have to pay the premiums.
The death benefit you choose in the whole life insurance policy will never decrease and the premiums will always stay the same. With online life insurance quotes for term insurance, the benefit and the premiums remain the same for the term, but could change dramatically when you renew the policy at an older age.
In order to determine how much of a death benefit you need with whole life insurance, you should sit back and evaluate how much money your family would need to survive without you. You have to look at the fact that the bills still need to be paid and your income will no longer be available. The sum of the death benefit is one of the factors that does determine the price of the whole life insurance quotes you receive. Other factors include your age, occupation and health.
The younger you are when you choose to get whole life insurance, the lower cost it will be to you. In your later years, you won’t have to budget for the premiums, because they will be paid up. You can also borrow against the amount of money you build up in the whole life insurance, but this part of the policy and doesn’t have any effect on the whole life insurance quotes you receive.
When comparing whole life insurance quotes there are quite a few things to think about.
by insurance | Dec 21, 2018 | Insurance
The information you need about the best term life insurance quote is only a click away when you search for term life insurance online. You don’t even have to know anything about the insurance industry to get the best term life insurance quote from an online insurance company.
So many life insurance companies have an online presence that you can shop for anywhere from one year to 30 year life insurance terms. Term life insurance is cheaper than whole life insurance because your family only collects a settlement if you die during the term of the life insurance. If you are still alive at the end of the term, then you have to start looking all over again for the best term life insurance quote.
There are several ways to look at term life insurance. If you want to have life insurance as protection for your family, you can look for the best term life insurance quote online and then change over later to a whole life insurance that provide 30 year life insurance terms or one that lasts for your whole life. You might also want to look at universal life insurance that covers everything.
In getting a term life insurance policy you need to get the best term life insurance quote with monthly premiums that suit your budget. Usually term life insurance policies are for 5, 10, or 15 year terms, but it is possible to get 30 year life insurance plans as well. Since the longer term plans are more expensive, you are probably better off with a whole life insurance policy.
You should contact several life insurance companies in order to get the best term life insurance quote, you need to compare the quotes from different companies. This comparison not only involves the bottom line price, but the length of the term, the monthly premiums and the amount of the death benefit each policy offers. Only then can you make an informed decision about the life insurance protection you have for your family.
Some term life insurance companies will give you a policy with no medical exam. It really depends on your answers to various questions about your age, occupation, and health whether or not you get the best term life insurance quote for such as policy. The younger you are, the better quote you get. It pays to shop early for life insurance.
Looking for best term life insurance quote? Look online. But don’t just get the quote, check out the company.
by insurance | Dec 21, 2018 | Life Insurance Quotes
Whole life insurance provides customers with a life insurance policy that will help their loved ones in the future, and with an investment component that will help customers and their families right away.
This mixture of delayed and instant gratification has been attractive to life insurance shoppers for decades, but today’s trend in life insurance is moving away from whole life insurance packages. Once, whole life insurance policies were the standard, but today they are the exception.
As the economy changes and the American public become increasingly savvy about money management, the full service that a whole life insurance policy provides just isn’t as necessary as it used to be.
People who want a more hands on approach to investing are likely to find a whole life insurance policy too limiting. And, the amount of money that one of these policies requires each month can make it difficult to pursue other investment options, especially for middle and lower class families who are living on a budget.
A lot of financial experts today feel the investment portions of whole life insurance policies do not offer customers the best return rate on their money. This provides an incentive for people to purchase term life insurance policies which do not include any investment components, and then invest their money elsewhere.
However, there are still some advantages to purchasing a whole life insurance policy. Although the investments that an insurance company will make on your behalf may not be the most lucrative, they will almost certainly be among the most stable.
Many people prefer a lower rate of return with a lower chance of loss rather than a riskier gamble. There is plenty to be said in favor of this perspective, especially when it comes to planning for the future.
In addition, people who do not have the discipline or inclination to save money on their own often find the structured saving a whole life insurance policy requires to be a boon.
If the idea of budgeting your own savings plans and spending time researching hot stock tips appeals to you, a whole life insurance policy probably won’t be to your personal taste. Of course, even if you don’t opt for this tried and true kind of policy, you can be certain that someone else will.
Although today’s trends seem to foretell the end of the whole life insurance policy, there are still enough customers interested in this kind of traditional and conservative policy that insurance companies will be likely to offer this kind of coverage for many years to come.ShareTweet
