Basic Life Insurance

Choosing the right insurance is a critical undertaking. We’re talking about money that you’re going to have to shell out regularly, in the hopes that your loved ones would be taken care of if something happens to you. With all the different kinds out there, what should you choose? There are two basic types of insurance, whole life and endowment policies. Whole life policies are life insurance contracts that will pay you a lump sum only after your death. While endowment policies are life insurance contracts that are designed to pay a lump sum after a specified term. Generally, premiums are higher for endowment policies than for whole life.
Normally, I always suggest getting an endowment policy, since I like the idea of getting my money back. I also like to look at endowments as forced savings or long-term investments. Also, with endowments, you get insurance during the critical period of your kids’ growing up years. Once they’re all grown-up and well-established, then it would be your turn to need the money for your retirement.

by: Djai Tanji

ROP term life insurance was originally designed to refund only the policyholder at the end of the selected term like, for 20 or 30 years, if the policy holder has outlived the term. When the product matures, there are also several variations that allow policyholders to receive a portion of their refunds by canceling the policy several years into the term. Graduated refunds may be able to be acquired up to the sixth policy year; there are no refunds to be returned if the policy is cancelled before the end of the fifth policy year. It also offers the same benefits like those of a traditional term life insurance products.

by: Djai Tanji

Instant Issue Term life insurance is a conducive policy for people who do not want to waste time or don’t want to consume much energy and effort to shop around for term life insurance. In cases like that, most insurance carriers give consumers an online and easy form to research, compare and buy a policy instantly without even talking to another person. Moreover, there are no medical exam requirements to complete the policy which is quite an attractive factor. Although there may be a setback for this like its coverage level which, is generally smaller at a more expensive monthly premium.

by: Djai Tanji

Life insurance seems to be not as highly as needed when one is newly retired. But even though when your children are all grown up and on their own already, and maybe your spouse could live comfortably with his own retirement savings, there can still be certain circumstances in which many find themselves in need of financial support or back up. If a senior citizen has a certain illness, the tendency is to live with one of the children and this may bring financial dilemma on the affected family members. So better make sure that anyone who relies on your income is covered and that any debts you may posses will not be passed to loved ones in case of death.

by: Djai Tanji

If you are single, do not have a family or children and do not own a home, your life insurance needs are most probably not as high as they are in other stages of your life. It is because of the simple fact that who would assume the burden of paying for the final costs if you are to pass away. According to studies, single women often lack satisfactory life insurance coverage, 64 percent of American women do not even carry life insurance at all. In fact, most single moms who may be on a tighter budget than those of normal family with dual income, cannot afford life insurance so the tendency is they go on with different stages in their life risking death without any insurance coverage.

by: Djai Tanji

If you work in a company, you will be paying premiums for sponsored health coverage based on risk profiles that take into account factors such as the age and health of the whole group of employees. This kind of system can expand to life insurance as well. If ever you are thinking if it is a good deal, perhaps you should consider that you are paying a premium based on the risk profile of the entire employee base. Meaning, if you are a healthy person with a good “physical build,” you could be paying a premium that factor in a sickly, 50-plus employer. It doesn’t sound too fair for you, does it? So even if you have a policy because of your job, it could be better to cancel it after you get a more affordable and customized life insurance policy.

Universal Life Insurance has three types: Single Premium, Fixed Premium and Flexible Premium.

Single Premium Universal Life Insurance is also called as Modified Endowment Contract (MEC) due to the revision of the tax code. It is paid by a single initial payment. Payments must be paid in five or less years.

Fixed Universal Life Insurance is paid for by periodic premium payments. The payments are made within a short period of time.

Flexible Premium Universal Life Premium permits the policyholder to see how much they want to pay each time the premium is due. They also offer two death benefit options: Level death benefit and level amount at risk.

Term Life Insurance is the opposite of a permanent life insurance. It is purely for protection purposes only and builds absolutely no cash value.

Term Life Insurance keeps you covered only for a limited period of time. For example, if a singer goes on a world tour, he is insured by the producer only for the period of the tour. After the term life insurance contract, the insured has the option not to renew the policy or still continue with benefits. However, if the person insured dies during the term, the benefit will go to his signed beneficiary. Term insurance is the cheapest purchase of substantial death benefit on a cooperage with a per premium payment.

An insurance that remains only until the policy pays out is called a Permanent Life Insurance. This type of life insurance builds cash value that reduces the amount at risk in the insurance company and the insurance is expense over time. To explain further, the policy that has a million dollars value can be affordable to an ageing 76 year old woman because the real amount of insurance that he bought is less than a million dollars. When you have one, you can access your money by borrowing the cash value, withdrawing your money or simply by just surrendering the policy and receiving the surrendered value.