|
See how easy it is to get the insurance information
you need and get the best deals on insurance for your family, your home
and your auto. |
 |
|
Whole life insurance
Why Purchase Life Insurance?
- provide security for your family
- protect your home mortgage
- take care of your estate planning needs
- look at other retirement savings/income vehicles
People buy life insurance because too often
most of their other plans fail. They buy it because they realize
the need of protection for their families after their death;
or for a reserve for emergencies and of additional income for
later years.
Did you know that a life insurance policy can:
- Provide cash and income needs on and immediately following
death such as unpaid bills and taxes and other obligations.
- Prevent a family's
suddenly dropping from its accustomed standard of living after
the death of the breadwinner.
- Provide continuous flow of funds for the living spouse.
- Allocate income funds for the children's education.
- Provide a retirement
income throughout old age.
- Provide a reliable savings plan for the future
- Supplement income when earning power is destroyed by illness
of accidents,
such as covering medical expenses.
- Furnish surplus earnings for the investors
should disaster strike
The bottom line is this:
While Life Insurance is not always the insurance
product at the forefront of your thoughts, Life insurance is
always a friend in time of need.
What's the difference between Regular Life
Insurance and Term Life Insurance?
Term Versus Whole Life Insurance Term insurance,
also called temporary insurance, covers a person against death
for a limited time, the term. For example, the term might be
until children are grown, or until college is paid for, or until
retirement. You pay for the coverage period and at the end of
the term the contract, or policy, expires. If no claims are
made against the policy during the term, you don't receive any
benefits after the policy expires, just like auto or homeowners
insurance. Whole Life insurance, also called permanent insurance,
is permanent and does not expire (assuming you continue to pay
the premiums). It provides coverage similar to term insurance,
but it also provides an investment vehicle. A portion of the
premium goes toward insuring your life while the other goes
toward an investment account. This investment account can be
either an interest bearing account or a stocks and bonds investment
account.
Which is better (our opinion)? Young families
with large financial obligations are usually better off with
term life insurance. The substantially lower premiums enable
them to purchase sufficient coverage to protect against loss
of income. Any discretionary investment funds can be placed
in other vehicles (mutual funds, money market accounts, etc.)
that are likely to generate returns similar to or better than
life insurance contracts. Cash value insurance is sometimes
purchased by people for tax and estate planning purposes. You
should consult with your financial advisor.
What is the benefit of owning term life insurance?
Term life insurance rates have been dropping steadily in response
to increased competition. Term life insurance is a commodity,
and improved access to insurance information, such as at this
Web site, are making it even more so. Whether to use life insurance
as an investment is a separate decision; but for just pure life
insurance, which is term insurance, why should you pay more
than you have to?
Click here for a Free
Insurance Rate Quote.
|
