Term Or Whole Life Insurance...Choose Wrong And The Consequences Can Be Devastating!
The fact is, due to the plethora of information available here, we are confident that you will have all the information necessary to make the RIGHT choice for your family or business!
Accidental Death
This kind of policy is normally the lowest cost of Life Insurance you can buy. In addition to being insurance on your life, this kind of policy most often pays for the loss of a limb, eyesight or other body parts in addition to the loss of life.
According to the egregiously arrogant and self important columnist for Marketwatch, Chuck Jaffe, the accidental death policies written by Globe Life are "stupid investments".
I often wonder when I read these kind of "opinions", what the survivors think of these policies when their loved ones are in fact killed in an accident. I really doubt that they would think that the incredibly small premiums paid for this kind of a policy was "stupid"
Do I think accidental death policies are a good investment? Absolutely not. Regardless, I really do not feel comfortable in calling any of my readers "stupid", as does Chuck Jaffe by calling the policy they buy, stupid.
I would hope that if this kind of policy is purchased, it is in conjunction with Another form of term or permanent insurance.
It is important to understand the restrictions that are normally included an accidental death policy. Often, high risk activities are excluded from coverage. Consequently, if you are a skydiver, hang glider, pilot, race car driver or engage in other such activities, it is important to know if they are excluded from coverage.
Ultimately, only you can make the decision as to whether this kind of policy is appropriate for your family. Investigate the differences between policies and then make your determination.
Term Life Insurance
Term policies are sold in different varieties. Once again, you need to research the different prices and terms before you decide which is right for you.
Decreasing Term Life Insurance
Decreasing term is a term policy that became popular by aligning itself with the mortgage industry. The policy normally begins with a benefit amount that is equal to the amount of your mortgage. It is constructed so that the benefit value decreases with the decreasing mortgage balance. At the end of the mortgage, it no longer has any value or premiums due.
This is another type of policy that is much maligned by "experts" However, just like the accidental death policy, the people who benefit from this kind of policy are in complete disagreement with the "experts". When you purchase the Life Insurance policy from the F&I office at a car dealership, this is a form of decreasing term. The benefit decreases with the balance of the car loan.
Level Term Life Insurance
The level term life insurance policy is designed to give you the most coverage during your most vulnerable years for the least amount of money. Often, the level will be for a period of 10, 15 or 20 years. When the term of coverage expires, there is no longer a benefit nor continued premiums. The philosophy behind such a policy is for the holder to be covered during the years in which they are building their net-worth. At the end of the coverage, the policy holder, in a perfect world, would have added permanent life insurance to his or her portfolio.
Permanent Life Insurance
This is the most expensive of the insurance vehicles. In addition to providing insurance protection for the owner, it also builds a cash value throughout the years. As the name implies, it is permanent in nature. As long as your premiums are up to date, this kind of life insurance policy will never expire.
There are many incarnations of the whole life policy. Non-Participating, Participating,
Indeterminate Premium, Economic, Limited Pay, Single Premium, Interest Sensitive and many more.As the world turns, there will certainly be many more incarnations of this insurance vehicle in the future.
In the past, for the most part, you had to get your information about all the varieties of insurance that were available to you, from an insurance agent. The problem with that is that insurance agents are salesmen. They want to sell you what they know best and in their minds what is best for you, regardless if it is or not.
Those days are gone. If you have the time and or patience, the internet will unveil every possible variety of life insurance that is available to you. You simply need to do the research. You can now make more intelligent decisions regarding which life insurance policies are best for you.
We believe our site, WesellLifeInsurance.com, is as good of a starting point as there is on the net, for researching this complex subject. You will find links to many different companies and links to many articles with life insurance as the subject.
Do your research before spending your hard-earned money. You will be better off for doing so.
