Whole Life Insurance – Good Investment or Wasted Money?

You\’ve read about the pros and cons of investing your money in various ways. After reading extensively, are you still wondering if whole life insurance is a good investment? The answer isn\’t as easy as you might think.

Sometimes whole life insurance offers an excellent investment opportunity, but not always. Whether or not it does depends on the age, health, and financial circumstances of the prospective policyholder. Furthermore, some policies offer better investment potential than others.

For example, if you are beginning a family after age 40, purchasing whole life insurance may be wise. The cost of the premiums may be comparable to those of term life policies at this age. Additionally, if you want to be insured for more than 20 years after your 40th birthday, term life premiums become expensive.

People who have had serious illnesses or chronic health problems may find term life insurance more expensive than whole life insurance. Some persons may even have difficulty qualifying for term life insurance. In contrast, most whole life insurances offer stable premiums throughout the duration of the policy.

If you have a large estate, you may benefit from creating an insurance trust with a whole life policy. This type of trust can be used to pay probate fees, inheritances taxes, and other estate-related expenses. Finally, most whole life insurance policies do not require beneficiaries to pay taxes on the payoff.

If you don\’t intend to hold the policy for a long time, whole life insurance policies may not be a good investment. For example, if you want coverage for only 20 or 30 years, you may be better off choosing a term life policy. Often, whole life premiums do not cover the commissions and other expenses incurred by policy owners for at least 10 years.

If you want a short-term investment, consider purchasing a term policy instead. Invest the money that you would otherwise have spent on insurance premiums into a solid mutual fund or stock investment. Your capital will grow much more quickly if you invest it this way.

Whether you will find whole life insurance a good investment depends largely upon your personal circumstances. Determining whether this investment strategy will work for you, consult a financial planner or insurance specialist. These experts can help you make the right decision for your financial circumstances.

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Understand Term Life Insurance Beneficiaries

A key consideration of term life insurance policies is designating the policy beneficiaries. Let\’s first understand what the term means and dig a little deeper into choosing your beneficiaries.

It\’s always good to start with the official definition:

An individual, institution, trustee or estate which receives, or may become eligible to receive, benefits under a will, insurance policy, retirement plan, annuity, trust or other contract upon the death of a certain person.

Now that we have that out of the way…a beneficiary is essentially the person who will receive money when the benefits are triggered. In most cases, this is a spouse, children, or other family members.
It\’s the person or entity you list in the term life insurance plan to receive the death benefit.

It can be:
one person
two or more people
trustee or trust you have already established
a charity
your estate.
Primary and Secondary or Contingent Beneficiaries

There\’s usually a pecking order to the list of beneficiaries. The life benefits will be paid to the primary beneficiary if available and possible. Otherwise, the policy will usually pay out to the secondary or contingent beneficiary. It\’s possible to designate more than one person as the primary beneficiary with some sort of percentage split among them.

In most cases, the beneficiary is pretty self-explanatory but you want to make sure to be clear. For example, you would not want to list \”spouse\” as the beneficiary. It\’s better to use the spouse\’s name and even SS# otherwise, ex-spouses might lay claim to the benefit and this result in disputes, which is the last thing you intended. Clear and precise is the rule of order when choosing beneficiaries. You can make changes to this area but it\’s best to change it immediately or better yet, designate it correctly from the beginning to avoid potential disputes and issues. It makes sense to specifically name someone if that\’s your intent to avoid the delay and cost of probate (where benefits go through the estate instead of direct to a person).

Clarity in how the benefits is to be paid to beneficiaries is also extremely important with term life insurance policies. For example, if you have three children and designate an equal amount to each, what happens if one deceases before you or cannot be found? Specify exactly how this type of situation would be handled so there\’s no confusing. Wills are not a substitute for properly naming your term life beneficiary as wills traditionally deal only with estate issues (probate). Probate is subject to taxes and creditors so it\’s important to name a person\’s name directly as a beneficiary to avoid this.

Try not to use exact dollars as the amounts can become outdated. Percentages stay true regardless. Try not to use your estate as the beneficiary as that opens up your life benefit to probate, taxes, etc. One of the great benefits of life insurance if the beneficiaries are properly listed is that it avoids the issues associated with estates. In some states, listing minors as beneficiaries can pose problems since they may be required to have a legal guardian appointed by the court to manage their money.

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Life Insurance Questions And Answers

More Life Insurance quesions please visit : InsuranceQuotesFAQ.com

AIG Life Insurance, stay away or no involve to verbs?
I had my bloodwork done last week by AIG and adjectives it needs now is for me to sign the paperworks and return it hindmost to them. I was surprised to see the news yesterday andgot a bit worried. My problem now is, do i stick with them or should I…

Air force insurance?? IS There natural life insurance contained by the upper air force?
is my medical and dental insurance gonna cover my whole family? Plus whos gonna abet me when i reach BMT Soldier\’s Group Life Insurance (SGLI) will cover you for up to I believe $450,000 at only going on for $27 per month. DELTA Dental program…

Alimony estimate — does it include court-ordered go insurance?
If there is a court order that a human being pay for a life insurance policy near the ex-spouse as beneficiary, do the payments for the life insurance count as alimony for deduction purposes? No.. I don\’t think any authority would order a person to money life insurance and make…

All i enjoy is life span insurance license and strength insurance license where on earth can i work thats not commission base?
Are you willing to work for $6 an hour doing customer service type stuff? With no experience and a license, you can do that for a local agency. But you\’re not going to find someone to…

All premium medical condition insurance carry the leeway of finish off of energy counseling what the difference?
all premium health insurance offer the option of end of duration counseling so what made the public option one that stood for death panel… is it because poor people could actually enjoy a say in what happen after they die or do conservatives…

Am 44 near a payed sour low life span insurance policy, should i lolly surrounded by and procure a high policy?
It really depends on what your goals are. Try talking next to a few independent insurance brokers to get multiple perspectives. Source(s): For an insurance overview, try this article:  It depends. Do you own the…

Am I Able To Still Sale Insurance?
was told that I would need someone to sponsor me within order to get my license to start selling life span insurance. I am wondering if this is the only way to shift about doing so..Can I get the license on my own and afterwards start selling insurance without having a sponsor?? Who\’s…

Am i competent to find out if my grandfather have vivacity insurance & next to what company?
My grandfather had life insurance & my dad be his heir,but my dad passed before my grandpa. when my grandpa passed my siblings and i be all under 18. one of his relatives be the executor of his estate. that particular relative currently is…

Am I elegible for premium settlement since the policy is not valid since I am no longer a applicant of the federation?
My wife was an NEA member when edification and took out a life insurance policy. She has not be a member for six years. We discovered that since she isn\’t a member, she is not eligible to…

Am I entitled to a copy of my policy from my employer voluntary duration insurance plan?
I recently signed up for the additional voluntary existence insurance through my employers group plan (I pay extra for it). I hadn\’t recieved any documents so I call the company directly and they told me that I wouldn\’t be getting any because my employer…

Am I paying too much for my go insurance premium?
I am 23 years old and I have a MetLife adjectives life insurance policy with an unpremeditated death policy as well. I\’m paying $72 per month for it and I be wondering if this is too much. The face value is $100k. Thanks. I have one to be precise 50K,…

Am I responsible for my mothers bills?
My mother passed away 2 months ago and I am starting to get bills sent to my home for her doctors while she was within the hospital. She had insurance, so some parts of the bills were covered, but not adjectives was covered. She passed away leaving not a penny. No…

Am I too childish for natural life insurance at 23?
I was looking at life cover worth lb100,000 but I\’m not sure, am I too young-looking? it\’s over lb50 years and they\’ve qouted me at lb10 per month… is this a good deal? xxxx no..ur ready to die! Source(s): your mother Yes and you will be crazy not to start…

Am I wrong for getting enthusiasm insurance on my mother?
My mother has had severe hemorrhoids since she be pregnant with me. She has gone to the doctor a few times surrounded by the past 26 yrs. She has gotten antibiotics and strain medication. She bleeds with every bowel movement and if she sits down too hard. …

Am looking to find enthusiasm insurance. I am lone 25 years outmoded but hold a 1 yr dated daughter. What type of coverage s
should I get and which companies should I look into? I am looking for something fairly credible but with good coverage. Any other advice/help would be appreciated as I know nil about this! Go to Yahoo…

AMBANK guarantee return life span insurance, is it virtuous?
ZJust asking, my friend approach me telling me to buy the AMBANK life insurance next to guarantee interest that will be give after the period I choose, close to 20 or 15 years. Said that I will become millionaire if I live past 85. Can it be trusted. My friend…

American Amicable Life/Horizon Life insurance Questions..?
Year1-100%toward premium, yr.2-7- 75%, after yr.7 100%.Started at age 21.5, soon to be 24.Paying $100/mo., so estimate $1700-2000 paid into it so far.It\’s 20year policy, no fees after year10, otherwise 5%withdrawal fee.Didn\’t know much give or take a few it at the time, but been thinking to cancel policy, cut my losses(over$1500/current value$250), and pinch…

American Church United solicits energy insurance coverage by Prudential.?
The coverage is offered for persons up to 100 years old lacking a physical exam. Is anyone familiar with this consortium? If so, is this a legitimate association? Recent contact with Prudential, representative stated, they do not underwrite policies for this association. Here is the website: www.americanchurchunited.org They can, but I hold…

American Income Partners Co-pay Discount/Life Insurance?
I know this has been asked until that time but there wasn\’t any good information given give or take a few it. I recently joined AILife\’s Co-py discount program as ably as signed up for their accidental life insurance. I do not work for them. Is this really worth it? I don\’t…

American mutual energy insurance company?
my parents paid into a this life insurance for me as a babe-in-arms (1956) untiI was about 5 yrs feeble. on the front page it says \”endowment maturing at age 65….annual dividends. premiums payable for 20 years or until prior death of the insured—\”near waiver of premium benefit\” my father told me that in…

Amount financed does existence insurance supposed to be surrounded by this amount?
My bank didn\’t include this in the amount financed column, I didn\’t want this insurance,my expenditure shows they added life insurance to my loan,can they do this legally? No one can supply life insurance without your consent. They can require it, but you must approve it. Read the…

An annuity is sometimes call the \’flip side\’ of existence insurance because? (6)?
a. always pays out more than it costs. b. helps citizens accumulate funds during life. c. systematically liquidate a fund during life. d. always costs more than it pays out. Life insurance next to cash value don\’t repay out cash value…

An insurance company files on 1,000 insurance policy holders reveals the following information:?
An insurance company records on 1,000 insurance policy holders reveals the following information: 1) 220 purchased only disability insurance. 2) 110 purchased form and life insurance. 3) 330 purchased health insurance. 4) 100 purchased singular life insurance. 5) 100 purchased disability…

An insurance company history on 1,000 insurance policy holders reveals the following information:?
An insurance company records on 1,000 insurance policy holders reveals the following information: 1) 220 purchased only disability insurance. 2) 110 purchased robustness and life insurance. 3) 330 purchased health insurance. 4) 100 purchased solitary life insurance. 5) 100 purchased disability…

An insurance company sell a $15,000, two-year possession vivacity insurance policy to an individual for $1,250.?
Find the expected return for the company if the probability the individual will live for the next two years is 0.93? Can anyone help? .1.00-.93=.07 .07*15,000=1,050 1250-1050=200

Anna Nicole\’s existence insurance proceeds progress to who?
Has there been any reports give or take a few life insurance that Anna owned on herself or that others took on her? I am curious to see who profits on her death. If the money supposedly is to move about in trust for the baby, what sort of charge…

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Life Insurance – Level vs decreasing life insurance which one?

Level Vs Decreasing life insurance

So when you are taking out life insurance you are faced with the choice of either level or decreasing life assurance.

There is a key difference between the two as one could possibly be worth much more than the other. Both can be take along side critical illness insurance.

Level life insurance means that the sum assured remains level throughout the term. it does not mean that the premium remains the same. If you take out life insurance over 25 years for £200,000 it means should you die within that period the policy is guaranteed to pay out £200,000. This is normally taken with an interest only mortgage or to protect the family. That\’s why its also know as cheap life insurance

A decreasing life insurance policy means that the sum assured decreases year one year. So effectively the older you get the less its worth. As we are more likely to die the older we are these policies are cheaper but almost worthless at the end of their term. So beware if you take one out make sure you die early.

Also if you are not married make sure you put the policy in trust. This means if you were to die whoever is named in the trust will receive  the benefits direct and not have to wait for probate. To get a quote for online life insurance shop around online as there are some great deals to be had. Or if you are not sure get some life insurance advice.

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Compare Life Insurance Policy

We all are aware of the fact that life is uncertain and anything can happen to any person. When a family looses the earning member of the family then they face lots of problems. This is the reason why people are buying life insurance policy so that even when they die their family has some source of income. In short life insurance policy provides security to the beneficiary person.

The person who is the owner of the policy decides the name of the beneficiary and some other things which you will get to know by the end of this article. Life insurance which is also known as life assurance is a kind of deal between the insurer and the person who will be buying the policy.

The deal says that under some circumstances if a person dies some amount of money is given to the beneficiary in lump sum. The amount which will be paid as benefit is decided before the owner buys the policy. Few years back there were not too many companies present in the insurance area and thus people had very little options to consider. But today the scenario has changed and there is available large number of companies offering wide range of life insurance policies to their customers.

It is very natural that when we have lots of options we get confused and sometimes end up taking a wrong decision. So it is better to prepare a list of points on which different options can be compared and the one which is the best can be chosen.

The first point of comparison is to see what you actually need out of the insurance policy and what you are getting out of it. The policy which gives you maximum amount of what you want is obviously the best for you. But this is not the sole factor on which you can take a decision. There are lots more to consider and we will be looking at all those factors one by one. Other factor is how much amount you want to get from the life insurance policy. The amount chosen vary greatly amongst customers and it is entirely matter of your choice. Once you have decided on these two things you can move further.

Make a list of all the reputed insurance companies as it is better to become a member of a reputed firm. After considering these entire factors just look for a company which gives all these facilities at the cheapest price.

Since there are lots of policies under category of life insurance so it is not possible to extract information about all of them. One better way is to approach life insurance agent who can help you in getting the desired information. You just need to tell them what you basically want and he will tell you about those policies which are some how related to it. After that you can search about those particular policies in detail. With taking help from insurance agent your amount of work gets reduced greatly

One week before one of my friend asked me that he wants to go for some insurance policy. Then we came to conclusion that we must compare life insurance policy provider companies for taking better benefits of the facilities provide by them for the benefit of the customers. Then while going on internet we came across a website named    insuremegenie.com, which provides various useful comparisons.

This is only the insurance portal which provides comparisons on best insurance plan in India like Protection plan, child plan, Retirement plan, investment plan and health plan

For more information on Comapre life insurance policy you can visit our website http://www.insuremegenie.com

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Shopping for Life Insurance

You\’ve decided to buy some life insurance, but with so many insurance companies and so many products to choose from, shopping for coverage can be a bit of a challenge. Fortunately, with a little homework and the right help, you may be able to find a policy that suits you at a good price. Here are some guidelines to help get you started.

Size up your situation

Before you can start shopping for life insurance, you have to know what you\’re looking for. First, what type of policy do you want? Many different types of policies are available, including term life insurance and several varieties of cash value life insurance. Because each type has its own unique features, you should understand the differences and select the one that best meets your needs. Next, how much life insurance coverage should you have? That typically depends on your income, your assets and debts, your financial goals and obligations, and many other factors. Choosing the appropriate amount of coverage is critical because you want to be adequately protected, but you don\’t want to pay for more coverage than you need. Finally, you should figure out how much premium you can reasonably afford. A professional can help you sort out these issues.

Evaluate insurance companies

A life insurance policy is only as good as the company behind it. That\’s why it\’s crucial to carefully research and evaluate companies before you pick one. Start with some basic questions. How long has the company been in business? Is it a trusted, reputable name in the industry? How many different types of insurance does it sell, and is life insurance one of its main products? Visit the company\’s website to learn more about it. In addition, there are many consumer websites and print resources that can give you more objective information. You can also rely on word-of-mouth references from people you trust. You can even contact your state\’s insurance department for certain information, such as customer complaints lodged against a company.

Finally, there are independent firms that make a business of rating insurance companies, usually on a letter-grade scale. The ratings are typically based on such factors as an insurance company\’s financial soundness, the performance of its investments, and its record of paying claims in a timely manner. Some well-known ratings service firms are A. M. Best, Standard & Poor\’s, Fitch, Moody\’s, and TheStreet.com (formerly Weiss). These firms may charge a fee for the ratings they provide, but it may be worth it if you\’re serious about evaluating insurance companies.

Comparison shop, comparison shop, comparison shop!

How much you\’ll pay for life insurance coverage depends on your age, gender, health, family history, occupation, lifestyle, and other variables. The kind of policy and the amount of insurance you need will determine the premium. However, different insurance companies may charge widely different premiums for similar coverage. That is why finding the right policy at a good price takes some comparison shopping. Once you\’ve narrowed your list of companies down to a few, get a price quote from each company for the coverage you\’re seeking. You can phone many companies directly and get quotes from their customer service reps. You can also use computerized quote services and other on-line resources. And, of course, you can always enlist the aid of an insurance professional.

But keep in mind, there\’s more to comparing life insurance policies than just premium comparisons. This is particularly true for cash value policies. Some policies have surrender charges or other costs that may affect the total cost of the policy. Also, even if two policies offer the same level of coverage and seem identical in every way, they may not be. One policy may contain provisions and features that are more favorable to you. For example, some cash value policies have more flexible withdrawal provisions than others. Read the fine print before you buy anything, and try to compare apples to apples.

Go it alone or use a professional?

If you have the time and fancy yourself a savvy consumer, you may be able to save money by shopping for life insurance on your own. However, if you\’re like many consumers, you may be better off using a professional. A qualified professional can assist you with this entire process, starting with assessing your life insurance needs and choosing the right type of policy. He or she can help you evaluate insurance companies, do detailed policy comparisons, and balance cost against other issues. A professional can also interpret policy language and identify policies that are too restrictive for you.

If you decide to use a professional, understand your choices. You can go to someone who will sell you a policy (e.g., an agent or broker), or you can get advice from an insurance or financial professional. Whomever you use, you should screen them carefully. In fact, you should shop for the right person much as you shop for the insurance itself. Ask friends and family to recommend someone. And don\’t be afraid to interview people you\’re thinking of working with. Some good questions to ask are:

  • How long have you been selling life insurance?
  • What are your professional credentials?
  • How do you get paid (e.g., commissions, fees, bonuses)?

Explore all of your options

You have many options when shopping for life insurance. In addition to shopping through the traditional agent/broker channels, many banks offer good life insurance products at relatively low prices. You might also look into group life insurance that a professional association or other organization offers. Also, if you haven\’t already, sign up for any group life insurance that your employer offers. Though the coverage is often less than what you might need, the cost is often lower than what you might otherwise be able to buy as an individual.

 

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