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Susan Said:

Does universal life insurance make sense for us over term?

We Answered:

It's impossible to say which you should pick, because from what I see, you're "trying to get a deal". You haven't done the MOST important thing, when buying life insurance - SET THE GOAL.

What's the GOAL you want the life insurance to acheive?

Keep in mind, life insurance is primarily a DEATH planning tool, and a for most people, a crappy investment tool.

Always RUN THE NUMBERS. Then, check the guarantees. Many agents sell Universal Life based on the BEST possible scenario - which leaves many, many MANY unhappy insureds when the market is down - like now.

Set your goal. Compare UL products based on minimum GUARANTEED returns. I think when you read the small print, the amount that's GUARANTEED, is NOTHING.

And compare to average stock market returns here:http://www.msfinancialsavvy.com/calculat…

$30 a month for 30 years at 10% - stock market average - adds up to $$69,000. Compare that to the GUARANTEED amount on the UL, and verify that the PREMIUMS are guaranteed level, also.

Louis Said:

What happens if you have two life insurance policies? (Australia)?

We Answered:

The policies will both pay out, so it's really just a cost consideration. Would it be cheaper to replace both policies at your current age with a single policy for the total death benefit? Is one of the policies a decreasing death benefit? There's not enough information here to answer questions such as these, but you should have the information available to you to make your decision. If either policy has been in force for a significant amount of time, it's likely less expensive to keep them both in place. Again, it's all about the numbers.

Valerie Said:

Should I get additional life insurance, if I have substantial coverage thru employer?

We Answered:

Let's compare the two reasons

Reasons not to get your own life insurance
1) You have one through work
2) You expect to stay at that job for a very long time
3) You expect nothing will happen to the company.

Reasons to get your own life insurance
1) There's a chance that you can lose your job, so you won't be covered by life insurance anymore.
2) If you wait few years, the cost to insure you goes up.
3) Ownership of your own policy.

The questions is, are you willing to take that risk of being dependent on your employer to provide life insurance coverage? If you can afford to get your own term policy, then by all means do it. If you decide you don't want to buy your own life policy, then I suggest opening a 529 plan, which is used for higher education, for your kids. You also want to make sure your retirement needs are met. Are you on track to accumulate lots of wealth by the time you retire?

As for your pension plan, the chance of that being there when you retire is very slim. Many companies are getting rid of their pension plans because of the high cost and people living longer.

Steven Said:

A life insureance policy that pays whether the policyholder lives or dies is called?

We Answered:

it sounds like it should be "B", but in reality the real kind of insurance is Whole Life, whole life either pays out upon death or when the insured reaches age 100

Mary Said:

How much cash value does our Life Insurance policy have?

We Answered:

Probably none - you've only had it in force for a year.

Cash value, is a small amount of what you pay in, in premiums. Usually, you can only borrow up to 80% of the cash value. You've paid in $300. Cash value is probably around $30 - and the fees to borrow, are $200. You won't be able to borrow against the cash value for YEARS.

But you need to call the insurance company, and ask for an "illustration".

If you're using that life insurance as a savings or investment account, it's the WRONG TOOL. LIfe insurance, even permanent life insurance, is a DEATH planning tool, not an investment tool.

Albert Said:

Am I wrong to think that permanent life (cash value type) insurance is a major ripoff?

We Answered:

Some people really love them - they are brainwashed by the sellers.
Term Life is always the way to go.
Whole Life is for people that get taken by insurance salesmen...

Deborah Said:

Am I wrong to think that permanent life insurance is a major ripoff?

We Answered:

Google: Suze Ormond - why I hate Whole Life Insurance.
She likes Term. 10 or 20 year.
Whole Life = huge money makers for the salesmen.
Remember: You don't need life insurance unless you have dependents that can't live without your income...