Life Insurance

What Are the Benefits of a Universal Life Insurance Policy?

2009-10-31T02:10:00.001-07:00

By N. Rich

Universal Life Insurance is somewhat similar to a regular insurance policy, but the advantages are far greater. One benefit of a universal life insurance policy is that it offers flexibility and a higher potential for increased cash growth. It also allows you to modify your policy to suit your changing needs. For example, if things are going particularly well for you, you can increase the investment amount to take advantage of higher growth rates. Or, if things are not going very well you can use your cash and continue paying the minimum premium.

Universal Life Insurance offers you more control and better protection with:

1- Flexible Premiums- You are the one in control of the amount and frequency of your premium payments. You have the option to either increase your premium or pay lump sums. The additional dollars will continue to grow tax-deferred and increase death benefit values.

2- Tax-Free Benefits- The proceeds generated on your universal insurance policy are tax-free. The policy generates wealth over the years and secures a financial legacy for your family and loved ones. The beneficiaries of your estate never have to worry about paying taxes on your accumulated growth.

3- High Returns- You can double your net worth and build capital appreciation for years to come. This policy allows you to invest your money in stable stock index products so that you can secure a solid nest egg for retirement and a substantial amount of death benefit values. Your assets are leveraged effectively to begin generating capital.

With a universal life insurance policy, the potential to earn higher capital is substantial. A typical insurance policy does not allow you to earn money over the years; it simply provides a fund for accidental or premature death, leaving your family and loved ones with limited funds.

For more information on a universal life insurance policy, go to http://www.highnetworthsolutions.com/

Natalie Rich

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All About Variable Universal Life Insurance

2009-10-30T14:05:00.001-07:00

By Christy Love

Although the name sounds really complicated, Variable Universal Life Insurance is simply a combination of variable life and universal life policies.

Similar to Universal life, this policy provides the policy owner with the option of flexible premiums. More or less than the monthly premium can be paid. Also afforded to the policy owner is an adjustable death benefit.

Similar to Variable life, the owner of the policy rather than the insurance company, makes the decision as to where the cash value will be invested. The policy owner can choose between several types of investment accounts, such as, real estate accounts, bond accounts, money market accounts, and more. This allows for more aggressive investing on the part of the policy owner to build cash value interest and dividends.

The downside to this control of investment options is that the policy owner assumes the risk of these investments and the cash value and/or death benefit may increase or decrease over the life of the insurance policy.

The death benefit of a Variable Universal Life Insurance policy, in general, cannot drop below the initial face value of the contract.

In summary, this type of policy is great if you are want a Universal life policy with the investment control and options of a variable life policy, rolled into one.

Life insurance is a great investment if considered wisely and you should choose the type of policy and premium rates available from a wide range of companies before making a hasty decision. Make an educated decision and you'll be glad you took the time to do so.

http://www.lifeinsurance4all.com is a free tool that you can use to instantly compare Variable Whole Life Insurance policy details and premium quotes from the nation's top insurers.

Christy Love is a retired life insurance agent with over 30 years of experience in helping people protect what matters most... their families. As an Ezinearticles.com expert author, Christy enjoys sharing her knowledge of life insurance with the online community.

Article Source: http://EzineArticles.com/?expert=Christy_Love

The Viability of Whole Life Insurance

2009-10-30T13:27:00.001-07:00

By Tim Baker

A person who is married and has children is most likely to opt for a term life insurance. Because of the simple fact that they want a certain amount of security for their children in the future and according to them investing in term life coverage, will give them a lump sum amount after the end of a term. By that time the children would have grown up and when the term period of the policy ends then they will be able to get the maturity amount.

Everything might seem hunky dory now but if we look at the same situation from a different perspective, and then we will be able to find the loopholes in it. For example, if a person invests in term life policy at the age of twenty five then most probably it will reach its maturity when the person will be in his mid sixties. After reaching the age of sixty everybody begins to get bothered about the cost of medical expenses, etc. At that age, if he wants to buy another insurance policy, then he will be surprised to know that the cost of the same policy has increased by leaps and bounds. So they might have to deal with the fear of living their lives without an insurance policy.

All these problems can be curbed if a person chooses to invest in a whole life insurance policy, at a younger age. The premium for whole life policy remains the same as the amount which was fixed during the purchase of the policy. So if you plan to buy an insurance policy at a young age, then you can get it in a low rate of premium as during that time you will be in a good health. Most of us feel that we do not need to fritter away our hard earned money on insurance at such a young age.

But your insurance provider will extract a lot of money from you in the form of high rate of premium, if you purchase the same policy in your late forties. And some insurance companies are quite skeptical of providing life insurance after a certain age limit. With a whole life insurance policy your rate of premium will not fluctuate and it one of the best ways through one can provide financial support for one's family even after death.

Life insurance can help your family members avoid financial stress. You can get Wawanesa Life Insurance to ensure financial stability of your family.

Tim Baker was an insurance agent over ten years. He is the author of numerous articles on insurance.

Article Source: http://EzineArticles.com/?expert=Tim_Baker

The Advantages of Whole Life Insurance Against Term

2009-10-30T12:47:00.000-07:00

By Julie Viola

There is always the debate over the advantages of whole life insurance and term life. But before you get into the debate over which is better and more affordable, you need to look into the basics of both. For term life, you are only covered for the specified period of the term. While for whole life insurance, you will covered to the rest of your life or until you got to 100 years old.

Getting the wrong kind of life insurance can really hurt your financial road map or plans rather than helping you. You need to consider and think about which amongst the different types of insuring before you commit yourself to purchasing one. Term life will only pay out the death benefit if the policy owner dies during the term of the policy. After the term expired, there will be no pay outs. So for term life, you are only covered during the specified time or term stipulated.

In this case let us look into the advantages of whole life insuring. The main advantage is that you will have the cash build up in this type of insuring. The cash accumulated value normally starts right on the first year of the policy. The advantage here is that while you are paying for your policy, you are investing at the same time. You also have a fixed premium for life while the renewable term has increasing premiums.

For as long as you are paying your life insurance premiums, you coverage will never change. The investment feature with whole life is guaranteed. This is a good option for long term financial plans. The cash value added or savings feature allows you to build cash value on a tax-differed basis. With all these advantages, you can really have good protection with the combination of investment at the same time.

In this instance, the advantages of whole life insurance are paramount over the term life type of insuring. But before you go and purchase your policy coverage, make sure to research and check out how the insurance companies underwrite it. Get as much information from amongst the several insurers to get a better picture of what your best options are.

Take a Close Look At The Advantages of Whole Life Insurance through A Site Search Engine That Offer Whole Life Quote or You Can Simply go to http://www.JGVFinance.com For More Tips and Info Before You Make Your Decision When Buying or Purchasing Life Insurance Coverage.

Article Source: http://EzineArticles.com/?expert=Julie_Viola

Endowment Life Insurance, A Saving Policy

2009-10-30T11:53:00.001-07:00

By Vincent Funfatt Yeong

Life insurances are mostly designed for long term, some of the policies can have refund but some are not, depends on which policy you purchase. For example term life insurance has no cash value, it is designed solely for life protection, upon the maturity the buyer receives no refund, and all the premiums paid will not get back. Whole life insurance has cash value, but it has no maturity, it is a life-long investment.

Some people want to have protection and have saving at the mean time; endowment life insurance is the ideal policy, because the buyer can have not only protection, the maturity of the policy is short, and he also benefits the interest and the full amount premium refund upon maturity.

An ideal plan for saving
The premium of this policy is high but the amount payable is within short term, the policy holder can cash out the money in 10 to 20 years time. This policy provides coverage to the buyer for a specified term and the sum assured is payable to the policyholder along with the entire bonus accumulated upon the maturity of the policy, it is suitable for those who want coverage and at the same time can have big saving.

Different types of Endowment Life Insurance
Endowment plan is categorized as full endowment, modified endowment, low cost endowment and traded endowment; it is advisable to find out which product is suitable for you.

Surrender of policy
In the event of surrendering the policy the buyer can cash in his money earlier, he will receive the surrender value, the payout is determined by the insurance company, and it depends on how much premium paid.

Premium rate
This policy covers the buyer death benefit and has an early maturity, therefore the premium is higher than whole life insurance and the bonus rates lower, and the buyer will receive his premium payments upon maturity. The maturity ranges from 10 years to 35 years, the shorter the period the higher the premium.

Endowment life insurance has various products, find out more by consulting the insurance agents or log on to: endowment life insurance site, or visit us at:
http://www.indianapolislifeinsurance.net

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Term Life Insurance - What Are You Really Paying For?

2009-10-30T11:48:00.001-07:00

By Delnaz Thompson

Term life insurance is often called insurance in its most original form. Insurance means to pay for protection for an unexpected tragedy and that is exactly what term life insurance does. While other types of insurance do little "extras" here and there - like investment and additional coverage - term life insurance covers you for a specified purpose and nothing more. It also does not link to any investment asset so is free of any investment risks.

Now, the question is if there are other more lucrative policies available, why one should go for term life at all? The answer lies in the fact that the prices are lower in comparison to whole or universal life. In term life insurance, benefits are paid only in case of death that occurs within the stipulated term and that too if the policy is in force. Besides, as there is no cash value of the policy there is no investment risk involved for the insurer and so they can afford to keep the prices down.

Buying term life insurance is best if you have very specific purposes for it. For these, there are various types of insurance available in each insurance firm. Some of the more popular ones include:

1. Children's college education - this requires some accurate calculation of years to ensure that the policy

2. Credit management - such as paying off student loans

3. Auto insurance - which protects you in the event of an accident in a vehicle driven by you. Sometimes, it is replaced with accident insurance which, as its name implies, compensates you in the event of a motor accident.

4. Fire insurance

5. Household insurance - similar to property fire insurance mentioned earlier but is more comprehensive to include damages caused by theft (or attempted theft). This can be extremely helpful to reinstall home grilles and/or burglar alarms.

6. Medical insurance - this covers medical procedures that need to be done as well as hospitalization costs. This is, by far, one of the most popular term life insurance taken up as it helps to defray costly medical costs for you and your loved ones.

Such policies are becoming increasingly popular these days because people have started realizing their worth. More and more people are also buying term life insurance because not only they have realized the importance of buying coverage for their family, but also because insurance rates are within everybody's reach.

One of the main reasons why these prices can be kept at a much lower level than ordinary insurance is because it is a short term insurance solution to help provide death benefits. For term life insurance, death benefits can be paid out as long as the insured has updated his or her premiums and is still within the term of the insurance.

In general, the insurers cover you only if you have no health problem. If you have no health problem, you are not likely to die soon. If your policy covers a short period, you are most likely to survive the term and the insurer need not pay any death benefit. You are therefore required to pay a very nominal premium. If on the other hand you buy it for, say thirty years, you may die during the term, so your term life insurance rates will be higher, but not very high because by that time you will have paid quite a lot of installments.

The rates are low also because there is very little administrative cost in comparison to whole life or variable life. The latter categories have built in cash accumulation vehicles to force the insured to self-insure. This demands complicated administrative work, which in turn raises the insurance prices. At the same time, simpler administrative requirement means quicker release of benefits, if such a situation arises.

Term life may not have any investment opportunity; in fact, you may lose all the money you have paid as premium if you survive the term. Yet if you want to protect your family from future financial ruin in the event of your premature death without curtailing any major expense right now, it is the most effective tool to do so. Buy term life at a reasonable rate so that the benefit they will get in the event of your death will see them through.

The main downside of term life insurance is its renewal, which is treated as a new policy. This may come with slightly varied terms and conditions and premiums rates. For such insurance, you really should calculate and see if, indeed the insurance is as cost-friendly as you perceive it to be.

This type of insurance gives a whole new meaning to the phrase "you get what you pay for" - it is literally so. Payouts, if any, are exactly the sum insured and not a cent more. Reasons for payouts, too, have to be as literal as stated in the policy, with no alterations, no matter how slight.

To get the most competitive life insurance, check out Delnaz Thompson's site. She specializes in the different cheap life insurance. Visit her site for more information.

Article Source: http://EzineArticles.com/?expert=Delnaz_Thompson

Life Insurance Policies Explained

2009-10-15T07:09:00.000-07:00

By Matt McWilliams

Six Basic Kinds of Life Insurance

Regardless of how fancy the policy title or sales presentation might appear, all life insurance policies contain benefits derived from one or more of the three basic kinds shown below. Some policies due combine more than one kind of life insurance and can be confusing.

Term Life Insurance
Endowment Life Insurance
Whole Life Insurance
Variable Life Insurance
Universal Life Insurance
Variable Universal Life Insurance

Term Life Insurance

Term life insurance is death protection for a term of one or more years. Some companies are offering policies with terms up to thirty years. Premiums on term insurance remain level during the life of the policy. Term Life Insurance has no cash value account. Death benefits will be paid only if you die within that term of years. Term insurance generally provides the largest immediate death protection for your premium dollar.

Some term life insurance policies are renewable for one or more additional terms even if your health has changed. Each time you renew the policy for a new term, premiums will be higher. You should check the premiums at older ages and the length of time the policy can be continued.
Some term insurance policies are also convertible. This means that before the end of the conversion period, you may trade the term policy for a whole life or endowment insurance policy even if you are not in good health. Premiums for the new policy will be higher than you have been paying for the term insurance.

Life Insurance "Endowment"

An endowment insurance policy pays a sum or income to you, the policyholder, if you live to a certain age. If you were to die before then, the death benefit would be paid to your beneficiary. Premiums and cash values for endowment insurance are higher than for the same amount of whole life insurance. Thus endowment insurance gives you the least amount of death protection for your premium dollar.

Whole Life Insurance

Whole life insurance gives death protection for as long as you live. The most common type is called straight life or ordinary life insurance, for which you pay the same premiums for as long as you live. These premiums can be several times higher than you would pay initially for the same amount of term insurance. But they are smaller than the premiums you would eventually pay if you were to keep renewing a term insurance policy until your later years.
Some whole life policies let you pay premiums for a shorter period such as 20 years, or until age 65. Premiums for these policies are higher than for ordinary life insurance since the premium payments are squeezed into a shorter period.

Although you pay higher premiums, to begin with, for whole life insurance than for term insurance, whole life insurance policies develop cash values which you may have if you stop paying premiums. You can generally either take the cash, or use it to buy some continuing insurance protection. Technically speaking, these values are called nonforfeiture benefits. This refers to benefits you do not lose or forfeit when you stop paying premiums. The amount of these benefits depends on the kind of policy you have, its size, and how long you have owned it.
A policy with cash values may also be used as collateral for a loan. If you borrow from the life insurance company, the rate of interest is shown in your policy. Any money which you owe on a policy loan would be deducted from the benefits if you were to die, or from the cash value if you were to stop paying premiums.

Variable Life Insurance

Variable life insurance, provides permanent protection for you and death benefits to your beneficiary upon your death. The value of the death benefits may fluctuate up or down depending on the performance of the investment portion of the policy. Most variable life insurance policies guarantee that the death benefit will not fall below a specified minimum, however, a minimum cash value is seldom guaranteed. Variable is a form of whole life insurance and because of investment risks it is also considered a securities contract and is regulated as securities under the Federal Securities Laws and must be sold with a prospectus.

Universal Life Insurance

Universal Life insurance is a variation of Whole Life. The insurance part of the policy is separated from the investment portion of the policy. The investment portion is invested in bonds and mortgages, the investment portion of Universal Life is invested in money market funds. The cash value portion of the policy is set up as an accumulation fund. Investment income is credited to the accumulation fund. The death benefit portion is paid for out of the accumulation fund. Unlike Whole Life Insurance, the cash value of Universal Life Insurance grows at a variable rate. Normally, there is a guaranteed minimum interest rate applied to the policy. No matter how badly the investments go by the insurance company, you are guaranteed a certain minimal return on the cash portion. If the insurance company does well with its investments, the interest return on the cash portion will increase.

Variable-Universal Life

Variable universal life insurance pays your beneficiary a death benefit. The amount of the benefit is dependant on the success of your investments. If the investments fail, there is a guaranteed minimum death benefit paid to your beneficiary upon your death. Variable universal gives you more control of the cash value account portion of your policy than any other insurance type. A form of whole life insurance, it has elements of both life insurance and a securities contract. Because the policy owner assumes investment risks, variable universal products are regulated as securities under the Federal Securities Laws and must be sold with a prospectus.
Rates and coverage vary form state to state. Shop around on your own and talk to an independent insurance agent to make sure you get a plan that's right for you. It's amazing how much rates may vary from company to company for the same coverage.

Matt McWilliams is one of the co-founders of HometownQuotes.Com, an online insurance quotes web site. He is originally from Pinebluff, NC and attended Middle Tennessee State University. He is considered an expert in the field of online insurance shopping and finding new ways to help consumers save money on their insurance. For more information visit http://www.hometownquotes.com
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