Sunday, December 30, 2007

Universal Life Insurance Policy - A Different Choice

Choosing a life insurance policy isn’t an easy task. There are several policies to choose from, each with elements that we want and need. The two most popular kinds of life insurance policies are term life insurance policies and whole life insurance policies.

If a term life insurance policy and a whole life insurance policy got married and had a child, the child would be a universal life insurance policy. Universal life insurance policies are a mix of term life insurance policies and whole life insurance policies. Just like all children do, universal life insurance policies have a few positive features and a few negative features of each parent, i.e., the term life insurance policy and the whole life insurance policy.

Like a whole life insurance policy, a universal life insurance policy offers an investment component; however, universal life insurance policies are generally less expensive than whole life insurance policies. This is a good thing for those of us who want the cash value accruement of a whole life policy but can not afford to purchase one. It should be noted, however, that earning a cash value isn’t guaranteed. Coverage can even end if your account gets low enough.

Like a term life insurance policy, a universal life insurance policy is usually not as expensive as a whole life insurance policy. However, even though an accumulation of cash value isn’t guaranteed with a universal life insurance policy, it is possible; it is not possible with a term life insurance policy.

If certain aspects of both a term life insurance policy and a whole life insurance policy appeal to you, consider purchasing a universal life insurance policy. Don’t purchase any life insurance policy, including a universal life insurance policy, without first speaking with an agent of the life insurance company. Your universal life insurance agent will be able to construct the life insurance policy that meets both your wants and needs.

Resource: http://www.ezinearticles.com

Thursday, December 20, 2007

Life Insurance


We all must go at one time or another – a morbid statement but true. Taking this into consideration, people who look into the future think up of ways to deal with that fact. Perhaps one of the things we worry about most is that when we go, we are going to leave family members behind; family members who might be left in a financial with our going. One solution to this concern is to take out life insurance.

Life insurance is basically a policy that ensures financial assistance to those you leave behind. It is mostly taken out by people who have dependents who will probably meet financial difficulties if something were to happen to them. Money from life insurance may be used for a variety of purposes, depending on the needs of the dependents. Funeral expenses are one of the most common uses of life insurance. Others also use money from life insurance to meet their daily needs, especially if they have no other source of income when the policy holder passes away. Some people take out life insurance to cover any loan payments or mortgages as well. Life insurance takes on different forms.

The 2 main types of life insurance are term insurance and investment type insurance. Term insurance is the most commonly acquired policy type as it is cheaper. This life insurance policy is usually paid out at a specific period of time after which payments are not required anymore. Upon the policy holder’s death, a lump sum will be meted out to the dependents. This amount would be tax-free. However, with term insurance, there is also a set period of time that it is effective. Should the policyholder still be alive when the set period of time elapses, term insurance will be forfeited unless the policyholder decides to continue making payments for another set period.

Investment type policies, on the other hand, cost a little bit more for the policyholder. This type of insurance policy covers the policy holder for as long as he lives. During the course of his life – as long as he keeps up with the payments – his insurance policy builds up an investment value as well. That is, the worth of his policy increases. This insurance policy can then be surrendered for cash. In some cases, investment type policies set down a specific age until which it is considered applicable. If you reach that age, you can cash out the policy. This type of life insurance also has the advantage of being used for different purposes such as collateral for a loan. However, if you do this, your death benefit will be reduced.

A lot of thought should go into taking out a life insurance policy for yourself. Which kind you choose would depend on your specific needs as well as your ability to make payments. Do not be hasty about the whole process. Take into consideration every little thing that is involved. Term insurance may be cheaper but you may need to build up cash value. You may want cash value to increase but you may not have the means to keep up with the payments. That would only mean forfeiture of your insurance – a waste of money. Think hard and be practical and your loved ones will benefit from it all.

Resource: http://www.1888articles.com

Monday, December 17, 2007

A Life without Life Insurance

For whatever reason, buying life insurance has been reduced to an afterthought. Many of us are uncomfortable with facing our own mortality. Yet others do not see the value of life insurance because they are single, or will not live to receive the tangible benefit of having this coverage, unlike health insurance. Maybe you have been turned down for coverage because of a health condition, but most still can qualify for a graded death benefit policy.

Many people have life insurance at work. This usually comes in the form of term insurance. Term is insurance for a specific amount of time, and once it expires due to retirement, dismissal, or resignation, there is no benefit ( Some employers allow a reduced amount of insurance at retirement, usually a declining scale that often levels off at age 70, e.g.. 50,000 at age 65 and $25,000 at age 70). If you are dismissed from your job; you are without coverage unless you convert your group insurance into a whole or maybe universal life policy.

Some people have been conditioned that life insurance is for death benefit only. So buying life insurance, sometimes is not a priority until their mid-fifties or even late sixties when they retire. The problem is none of us know when we are going to die. You can literally cause your family to sell the family home, cause your spouse to work an extra ten years, and the brainy child may have to go the state university instead of your Ivy League alma mater (Some state colleges and universities are excellent. Go Buckeyes). If for nothing else, enough life insurance should be purchased so that loved ones are not left with your unpaid bills.

Life Insurance Uses:

  • Death Benefit
  • Provide income to pay off the mortgage in the event of death
  • Replace lost income that your spouse and children would otherwise miss
  • Make sure that future college tuition can be paid
  • An effect way to pay off children and spouse who do not participate in family business
  • To pay possible Estate Taxes
  • To provide liquidity when many assets are tied into Real Estate


Resource: www.financial-shopper-network.com

Life Insurance - Basic Explanations

Many of us try not to think about life insurance at all. However, it might be important to financially secure your relatives and family members in case of your death. Nowadays, most of people have outstanding debts, car payments, home and personal loan payments.

Many of us try not to think about life insurance at all. However, it might be important to financially secure your relatives and family members in case of your death. Nowadays, most of people have outstanding debts, car payments, home and personal loan payments. What would do your loved ones in case of your death if the major source for paying these debts were your salary? This would definitely put them in a difficult financial position. That's why it is worth to think about your life insurance.

There are two major types of life insurance: a whole life insurance and a term life insurance. With the whole life insurance plan you can insure yourself for the whole life and. In this case the total amount of money is paid to your loved ones after your death. There are various options when choosing a whole life insurance plan, so you have to make a careful investigation before making a decision. For example, in some cases an insurer pays extra bonuses to your dependants upon your death.

On the other hand, you may prefer to choose a term life insurance policy, a cost effective option. With the term life insurance plan you insure yourself for a particular period of time, normally 20 years, and the sum is paid if you die during this period. However, you should know that if you survive during this period, then no payments are maid and you can not make a claim after the end of the policy term.


resource:www.articles-hub.com