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Sylvia Said:

Kindly explain the different types of life insurance?

We Answered:

There are more types of life insurance than room here to explain. The best advice is to ask your insurance broker.

Rose Said:

I am having trouble understanding the different types of Life Insurance.?

We Answered:

Wow! Talk about being more confused. There is some logic here but you have to sift through a lot of info to get at the bones. Well, here goes:
Term insurance is true insurance. If you pay your premiums and, unfortunately pass away in the term covered, your survivors will be paid the face amount of the policy. Like someone else said, if you stop paying premiums or the insurance is not renewed, the coverage stops.
Whole life- insurance with a built in savings. There are different types- whole life, universal, variable or variable universal. All these do the same thing, provide survivors an amount of money if the owner passes away and sets up an automatic savings plan built into the policy. However, there are FIVE RULES to them. 1) In the first two years you have NO savings, could be a little longer but usually it is in the first two years. 2) You will earn between 1-4% on what is in the savings. 3) Should you want to take a loan out on the savings, You have to pay the company 6-8% interest on your OWN money. 4) The company can make you wait for up to 6 months to receive your money. Imagine, you can have your money in your bank earning the same rate but if YOU want it you can get it, free of charge, any time you want. 5) Last but not least, your survivors choose to receive either the face amount of the policy OR the cash value. Cash value is almost certainly way less than the face value. If the owner chooses to have survivors receive both, that person WILL be paying more in premiums for this option, otherwise, ALL the money in the cash value goes to the Company.

As for deciding how much to get, ask yourself these questions:
a) Do I want all debt to be paid off? b) Do I want my income replaced? If so, for how long? c) Do I want my mortgage paid off? d) Do I want to have my childrens education paid for? Lastly, do you want your funeral paid for (about $6500- 8000 will take care of that, less to be cremated).

It is actually understandable why your husband doesn't "believe" in this. You have to accept your mortality. You have to look death in the eyes when you plan for protection with life insurance. The only lives you are insuring is your families. Ask him if he feels comfortable knowing that if he passes away, you will be struggling to do everything by yourself that he now helps you with? Ask him if he would like to struggle if you were to pass away? List the things you do around the house and if you work. Then show him on paper what he would have to begin thinking about RIGHT after you passed away. Then say that it is the same thing if he passes.

I hope this helps. Remember, life insurance and savings should be kept separate. You can find mutual funds that do better than what any cash value can do for you.

Luis Said:

What is the benefit of term life insurance over other types of life insurance?

We Answered:

There are several benefits of term life insurance over other types of life insurance:

One of the main advantages of term life insurance is that it has much lower premiums than most other types of life insurance protection, such as whole life insurance.

Because a term life insurance policy is temporary, the chances of the death benefit being paid out are much less than with a permanent life insurance policy. That means a big savings on your monthly life insurance bill.

The death benefit of a term life insurance policy is only paid if the insured person dies during the term of the policy. Term life insurance policies don't offer you any cash values. Term life insurance policies are used for only for protection - not for investment purposes.

The Advantages of Term Life Insurance:

A term life insurance plan protects your family when you can't be there provide for them. There are several advantages of term life insurance, including:

Low Premiums - The premiums on term life insurance policies are the least expensive you can find.

Flexible Terms – You can choose coverage for a number of years that meets your family’s needs.

Maximum Coverage - Because term life is so affordable, you can provide more coverage for your family.

Low Initial Cost - Compare to whole life insurance, term life is much less expensive to start a policy.

The Option for a Permanent Plan - Most term life insurance policies will offer you the option to convert your policy to a permanent whole life insurance plan after a certain period of time. Changing to a permanent policy will be cheapest the earlier you decided to convert your policy.

Invest the Difference - Because term life insurance can be much less expensive than whole life insurance, you can invest what you would have had to pay with a whole life policy.

I hope that helps! Best of luck to you.

Andy Said:

What different types of life insurance is there?

We Answered:

I just written a blog about all the different types of life insurance out there. There's lots to read, so I'm not going to post it all here. Go here to see my blog: http://obe231.blogspot.com

If not, well, here is the list of all the kinds of life insurance out there. There are basically two types of life insurance, but each type has different names and different functions.

Type 1: Cash value life insurance
Names: Whole life, Universal Life, Variable Life, Variable Whole Life, 20-Pay Whole Life, Variable Universal Life, Whole Life to Age 65, Endowment insurance

Type 2: Term insurance
Names: Level Term, Decreasing Term, Increasing Term, Renewable Term.

http://obe231.blogspot.com

Jennie Said:

What are the different types of life insurance? What are the pros and cons of both?

We Answered:

It is never too soon to get life insurance for you or your loved ones. Get some now!!! Life Insurance Companies are all different, but one of the main things is to make sure they have a good financial stability rating (you should ask them what theirs is) You will want to get an A or better. That means they are financially stable, among other things.

Term insurance means exactly what it says, it is for a term, or a length of time. You can get term insurance for 5 years, 10 years, 15 years, or 20 years, etc. Term insurance is very inexpensive (younger ages get cheaper insurance). It does not build cash value, and after the term runs out (the 10 or 20 years that you chose) then the premium significantly increases. If you are just starting out with a child, whether you are single or married, and you don't have a whole lot of extra money to pay the premium, term life would definitely be a benefit for you. It gets you good insurance (you pick how much $50,000 $100,000 $150,000) for a term (10 or 20 years) for a cheap monthly premium. Again, the term that you choose will eventually run out, so you will want to convert your policy within that time before it runs out, but if something were to happen to you during the 10 or 20 years, you would have something to give to your family for burial expenses, and for financial support.

Whole life never runs out, it is not for a term, it is in fact just what it says for your whole life. It is more expensive, but you are locked into the premium rate when you take it out. (So again, buying it while you are young, you will get a better rate). Whole life does build cash value.

Regardless of which one you choose, the main key is to make sure you have some now. Get a policy soon if you don't have one. Life insurance is medically underwritten (most companies anyway) so they will want a medical exam where they come to your house and draw blood and a urine sample to make sure that you don't have HIV or diabetes, and that everything looks good on the lab results. (Obviously your 1 yr old probably won't need one, but you will) Once your policy is issued, you can then think about replacing it with a different policy at a later time.

You may think, well I will put it off until next week to apply for it, but then something happens to you, for example you end up with cancer. Then, chances are, you won't be eligible for life insurance and you won't have a policy when you need it.

So, buy it now!!! Talk to a couple of different life insurance agents if you want, and get some more information, but definitely don't wait. Any life insurance is better than no life insurance.