In Praise Of Whole Life Insurance
by: Donald Lusan
Whole life insurance even though it is not the least expensive life insurance policy you can buy can still fulfill the needs of some. Why some people have such an aversion to this policy I will never understand. Term insurance is also good insurance and can fit into more situations than whole life because of the low cost. More people can afford it. Both types of life insurance serve the same purposes, however, when you buy whole life insurance you get some additional benefits that term life insurance does not provide. Let us take a look at the whole life insurance policy and it's benefits.
Level Premium
Whole life insurance has a fixed level premium which never increases for as long as you own the policy. When you pay a whole life premium a portion goes to pay for the death benefit and a portion is applied to cash values. In the initial years a portion of the premium is also applied to administrative costs.
Death Benefit
Like any other life insurance policy the whole life insurance policy has a guaranteed death benefit which can be paid either in one lump sum or in the form of a monthly income. This death benefit is usually paid free of federal income taxes. There are several income options including a life income, an income for a fixed predetermined period and an income for a fixed amount. The insurance can also keep the principal and just pay the interest. The principal is paid upon demand.
Cash Values
The whole life insurance policy contains a guaranteed cash value which accumulates tax deferred. If you are ever in need of cash you may borrow from your cash value. You don't need to tell the insurance company why you want the money and you pay back the money at your convenience.
Dividends
Cash values earn dividends which depend on the performance of the company. these dividends are not guaranteed. They can be taken in cash, can be left to accumulate interest, can be use to reduce premiums or they can be used to purchase paid up additions. Paid up additions on a whole life
insurance policy is a fully paid up whole life policy. These paid up additions have cash values and also earn dividends.
There are many riders you can add to your whole life insurance policy. The two main riders are the waiver of premium benefit and the accidental death benefit rider also known as the double indemnity rider.
Waiver Of Premium.
If the insured should become disabled, any time after six months of disability the life insurance company will step in and pay the premiums even if the disability lasts for the lifetime of the insured.
Accidental Death Benefit
If the insured person should die in an accident, for example an automobile accident, the life insurance company will pay twice the death benefit. If you have a policy for $100,000, and you have the accidental death benefit rider, the insurance company will pay $200,000 to your beneficiary.
The above benefits may be worth the extra premium you would pay for a whole life insurance policy.
About The Author
Donald Lusan For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and best life insurance companies in the United States as well as Canada. His advice is invaluable. Donald's website is: http://www.lifeinsurancehub.net.
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Protecting The Smallest Member Of Your Family: A Step-By-Step Guide To Pet Insurance
Protecting The Smallest Member Of Your Family: A Step-By-Step Guide To Pet Insurance
by: Burke Jones
Let?s face it ? Fido and Fluffy are an important part of your family. Do you want to have to assign a dollar value to them if they become sick or injured?
That may well be the case if you don?t have pet health insurance. Rising veterinary costs mean that pet owners can pay hundreds ? and even thousands ? of dollars for their pets? health problems. As the bills stack up, uninsured pet owners must determine how much they are willing to spend on their animal friend. It can be a heartbreaking decision to make.
Much like insurance for health, cars and homes, pet insurance helps people put a little money away now to avoid a major payout later. Coverage and cost vary, so it?s important to thoroughly research the options if you decide to insure your pet.
Step one: Determine if Pet Insurance is Right for You
When people decide to get...
Protecting The Smallest Member Of Your Family: A Step-By-Step Guide To Pet Insurance
Insurance > Protecting The Smallest Member Of Your Family: A Step-By-Step Guide To Pet Insurance
Life Insurance Report From Lifesearch Females Buying Protection Has Doubled Since 1999
Life Insurance Report From Lifesearch Females Buying Protection Has Doubled Since 1999
by: Kevin Carr
In 1999, just one in five of LifeSearch?s customers were female, however, figures for 2004 and 2005 so far show that the number has now increased to 39%.
With more than 150,000 lives covered, the information represents a large number of customers and shows that many more females are thinking about their protection needs.
Commenting on the reasons for the increase, LifeSearch Policy Adviser, Linda Tyson said ?We attribute this increase to the growing awareness of the importance of protecting the financial stability of the family. More and more women are either the main or the only breadwinner and are realising the importance of protecting their incomes.?
Comparatively, the cost of life cover is lower for females as the life expectancy is higher.
While life expectancy for both men and women...
Insurance > Life Insurance Report From Lifesearch Females Buying Protection Has Doubled Since 1999
Life Insurance vs Life Assurance
Life Insurance vs Life Assurance
by: Joseph Kenny
People spend a lot of money on complicated financial products and it is sometimes difficult to keep track of what products perform what tasks. Many people are not aware of all the financial products that are available or they only know of them vaguely. They may not know how much they cost or the potential benefits they offer. How can consumers make informed decisions on what products they would be willing to buy if they do not have this basic information? This problem can often lead to consumers buying unsuitable of overpriced products simply because they feel they should have some financial protections available but don?t have the details to make an informed choice.
One of the common questions many consumers have is regarding the difference between insurance policies and assurance policies. Put simply, insurance policies cover the costs of an event that might happen while assurance policies...
Life Insurance vs Life Assurance
Insurance > Life Insurance vs Life Assurance
In Praise Of Whole Life Insurance
In Praise Of Whole Life Insurance
by: Donald Lusan
Whole life insurance even though it is not the least expensive life insurance policy you can buy can still fulfill the needs of some. Why some people have such an aversion to this policy I will never understand. Term insurance is also good insurance and can fit into more situations than whole life because of the low cost. More people can afford it. Both types of life insurance serve the same purposes, however, when you buy whole life insurance you get some additional benefits that term life insurance does not provide. Let us take a look at the whole life insurance policy and it's benefits.
Level Premium
Whole life insurance has a fixed level premium which never increases for as long as you own the policy. When you pay a whole life premium a portion goes to pay for the death benefit and a portion is applied to cash values. In the initial years a portion of the premium is also applied to...
In Praise Of Whole Life Insurance
Insurance > In Praise Of Whole Life Insurance
Your Auto Insurance Company For Extra Money?
Your Auto Insurance Company For Extra Money?
by: Joe Folger
Most people, once they have an auto insurance company,
simply just let their current policy renew and renew without
checking to see if maybe they can get a better deal
somewhere else.
If that describes you, maybe you would look
into exploring your options if you knew how and painless it
really is. This article will show you just how easy the
process is.
Shopping for a new auto insurance company
The easiest and quickest and as a result the most painless
way to shop for auto insurance is to go on the internet.
Many companies can give you quotes 24/7 on their websites.
You can also get contact information for a particular auto
insurance company on their site and call them up on the
telephone.
When considering switching companies, the first
thing to do is to get comparison rate quotes from several
companies.
Insurance > Your Auto Insurance Company For Extra Money?
Insurance Glossary of Terms
Insurance Glossary of Terms
by: Darren Yates
Assured - Those insured under the terms of an insurance policy.
Benefit - The money paid to the policyholder when a claim is made.
Bid Price - The selling price or cash-in value of your unit holdings.
Bonus - Relates to a with-profits policy. The amount of money added to the benefit payable under the policy. The amount is dependent upon the profits made by the insurance company. Added bonuses cannot be taken away.
Convertible Term Assurance - A term insurance policy which gives you the option to convert your current policy to a whole-life or endowment insurance policy, without having to take further medical examinations.
Critical Illness Insurance - A policy that pays out a lump sum on the diagnosis of life threatening illnesses indicated in the terms of the plan.
Decreasing Term - A form of term life insurance where the death benefit decreases each year as per your policy....
Insurance Glossary of Terms
Insurance > Insurance Glossary of Terms
How Much Can You Save On Your Car Insurance?
How Much Can You Save On Your Car Insurance?
by: Derek Gardner
It costs a lot to get car insurance. No one would argue on that. Without one it would cost you more to drive if you had an accident. Still, you don't want to pay too much for it. So how can you save money on your car insurance premium?
Check several insurance companies. Don?t fall for the headline that says they got the best insurance deal in town. Find out for yourself by shopping around. It would be to your advantage to compare at least 3 quotes.
Find out how the prospective company is doing financially. Does the company have any complaints against them? What is their reputation for customer service? A good indicator of this could be seen on your initial visit. For example, did they take time to answer your questions or did they try to cut you off fast? Taking note of these things could save you some regrets later on.
Check insurance costs for the car you intend to buy....
How Much Can You Save On Your Car Insurance?
Insurance > How Much Can You Save On Your Car Insurance?
How Much Insurance Do I Need?
How Much Insurance Do I Need?
by: Jeff Lakie
Insurance is a complicated business, and it can be unpleasant to talk about because no one likes talking about death? especially their own death! Because of those two reasons, many people do not think about insurance very much. However, most people should have some kind of insurance.
But how can you tell what kind of insurance you need? It is such as specialized industry, with insurance brokers requiring licenses in order to understand it and sell it, so it can sometimes make you feel like you are at the doctor and you have no idea what the doctor is talking about! What makes matters worse, is that insurance brokers (the only people who know what they're talking about) are usually paid by commission based on the amount they sell. So, while you are likely to get an insurance broker who is a good, ethical person, you might still be concerned that they are overestimating your need.
So how much do...
How Much Insurance Do I Need?
Insurance > How Much Insurance Do I Need?
Insurance
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