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Louise Said:

How is Term Insurance different from Life Insurance?

We Answered:

Term insurance is "pure" insurance coverage... it's not wrapped in a "savings" or "investment" plan. Whole Life policies are total rip off's 99% of the time. Buy pure insurance coverage & save money other ways........ it's the best way to avoid being screwed by an insurance company. In short, Term Insurance is usually the best insurance. The best term policies will hold the premium at the same price for 25-35 years. There is no "cash value" to these policies. That's a very good thing.

Julia Said:

How to find good term life insurance?

We Answered:

The best type of life insurance would be level term life insurance - either 20 year or 30 year level term life insurance.

Level term gives you coverage that remains level for a specific number of years, and your annual premiums remain level throughout the term of the policy.

The amount would be approximately 14 times your annual income (at least). That way they could take the benefit amount and invest it in a conservative investment vehicle that provides 6-7% annual return. That could be government bonds or a high quality bond fund. Hopefully, if the time ever comes, the interest rates will be higher. However, this does not take into account your existing investments, which would lower the amount of insurance protection your family needs.

To use a life insurance needs calculator, Go to http://www.term-life-online.com/term-lif…

The amount of term life insurance a person needs will depend on their specific situation and the reasons for buying the life insurance policy.

One way to decide how much term life insurance you should buy is to consider the needs of your family if you were to pass away prematurely.

Term Life insurance may provide financial security to meet many of your family’s needs by providing a fund they can use to:


Pay off an individual’s debts, such as medical bills, funeral expenses and health care costs

Pay for estate taxes and other expenses related to settling their estate

Provide a lifetime income for your spouse

Pay off an existing mortgage on your home

Pay for your children’s college education

Provide retirement funds for your spouse

Provide an adequate income for your spouse to give your family time to adjust to a new standard of living without you or your income

Receive interest to provide money for some special need – such as travel, education or health care costs.

Provide a monthly income until your children are grown up and living on their own.
The future financial needs of your family should be a major consideration in deciding the right amount of term life insurance to provide the financial security they deserve.

Another contributing factor is the amount of your annual salary. In addition, your family’s style of living they are accustomed to, your monthly expenses and future financial goals, such as, college tuition, retirement funding, vacations and living expenses.

The best way to get the maximum amount of coverage at the lowest rates would be to compare online quotes for term life insurance.

I recommend Insureme – They give you the five best life insurance quotes from top-rated life insurers nationwide. To request a free, no obligation quote, Go to http://www.insureme.com/landing.aspx?Ref…

I hope that helps! Take care and best of luck!

Adrian Said:

Primerica Insurance term life, explain to me about the 2 year contestablity period?

We Answered:

By insurance law in all states, the company can contest the payout of death claims during the first two years if the company has found that the applicant has made fraudulent claims, misrepresentation, or concealment of information.

The contestability period last for 2 years from date of issue. After that, the insurance law says that the insurance company can't contest (deny) the payout of death claim, except where the applicant has misstate his/her age or sex. In this case, the insurance company will adjust the face amount of the policy, but still pay the death claim.

Here's some other information if the applicant commits suicide. If the person commits suicide during the first 2 years, the company will only refund the premiums to the beneficiary. If the person commits suicide after the first 2 years, the insurance company will pay the death claim.

Erika Said:

Does anyone know if whole life insurance is better than term life?

We Answered:

You're absolutely correct in your analysis of whole and term life.

However, it all comes down to what you wish to accomplish. And there are other options.

I typically recommend one of two options for my clients. The first option is a combination of term insurance (to cover lost income during the earning years) and a small whole life policy that would always be there to cover final expenses.

The second most popular option is to write a single Universal policy. There are different options for Universal policies, too. What I typically do for my clients is to write a policy so that the client pays for a set number of years (usually through age 65) and yet they retain coverage through age 100 (or beyond.) These policies do build cash value for the first several years while you're paying into them, but they essentialy work like term insurance that never runs out. (And in the end, a lot of people find that very appealing.) I generally write guaranteed death benefit Universal policies (as opposed to those that are designed as more of an investment and may run out of money when you need it most.)

Edwin Said:

Do I need both term life insurance and universal life insurance?

We Answered:

Stick with a term policy to cover you incase of death. Universal is just a poor investment. Put that money into a mutual fund instead.

Nicholas Said:

Is a whole term life insurance with a retirement plan a good idea?

We Answered:

Investing into life insurance plans are never a good idea. Why? In most cases, you or the beneficiary are getting one or the other. Not both.

Buying term and investing the difference is the best approach. That way, as your investments grow and your financial obligations goes down, you won't need as much coverage later on in your life.