An Intro To Life Insurance

There are many options available for life insurance, and for most people these options can be somewhat confusing. Below is a brief review of each type and some advantages and disadvantages of each. When choosing a policy it is important to look at the larger picture so that you make a wise choice in terms of cost, coverage and benefits.

Term life insurance

These plans provide monetary benefits only if death occurs within the time period that the insurance is set for. Term insurance is generally most affordable and offers additional savings for younger policy holders.

Permanent life insurance

This policy is a more long lasting option for insurance. The premiums are higher, but there is not a term on the length of time that the policy will pay out. Another benefit to these types of policies is that some companies take the profit and reinvest it and pay dividends to the policy holders. There are no taxes on these dividends unless the holder accesses the cash value.

Whole life insurance

Another type of policy with a cash value is the whole life insurance policy. These types of policies have a set premium for the length of the policy. At policy inception and in the early life of the policy rates are rather high compared to the risk of death, but over time as the risk for death increases the policy remains low and can be more affordable than other types of policies. Universal life insurance A universal life policy combines the benefits of a term and whole life policy. The policy provides for accumulation of cash reserves, which can be borrowed against at a later time. Premium payments and coverage amounts can be varied year to year

Variable life insurance

Variable life insurance is a policy that has some similarities to an investment plan. The profits that the company makes are reinvested into stocks and bonds, and these investments affect the cash value that the policy carries. This can provide a greater cash return on your policy, but it can also offer less as the money is tied to market performance. Single premium policy

The single premium policy is a unique type of insurance. This policy has one premium up front for the amount of the life insurance coverage. This amount, while large, does have some security behind it. It allows someone to give the policy as a gift, or add it to an estate plan. There is no risk that the policy will be canceled due to non payment, and this allows security if it is bought for someone as a gift or as protection for the family for the future.

Survivorship policy

A new type of policy that has been offered recently is a survivorship policy. This is a policy that covers two separate people under one policy. After the first person dies, the remaining person receives no benefits. There is no payout until both parties covered under the policy have passed away. This type of policy might not make much sense to people, until they consider that this policy is a great thing for estate planning for children and other family members.

Now, how to decide what you need and want out of a policy? The best thing is to take a look at your goals. For example, Do you want a policy that remains unchanged, or one that can be adjusted from time to time depending on your current life situation? Do you view insurance as something that you get leave alone, or something that can help you now as well as your survivors in the future?

Talking with a reputable insurance agent can be helpful in terms of narrowing options and addressing the complex array of needs a potential plan might fill. Many times, an agent can do a profile on you and give you exactly what you need without the unnecessary and often expensive extras.

Nicole Soltau is the President and Founder of http://CreditUnionRate.com The Leading Credit Union Directory Search, Find, Join.

---

Finding Auto Insurance Comprehensive Coverage

You can go online to easily find and quote auto... Read More

Terrorism Insurance - What it Costs Small Business

The Terrorism Insurance Act of Nov. 26, 2002. This helps... Read More

Finding a Discount Car Insurance Broker

Discount car insurance brokerTimes past finding a discount insurance broker... Read More

Motor Insurance with Pass Plus

Is pass plus really worth it? What motor insurance discounts... Read More

UK Young Driver Motor Insurance - Build Your Own No Claims Bonus or Insure through Your Parents

For may young drivers, affording the costs of motor insurance... Read More

10 Ways to Lower Your Auto Insurance

Nowadays, auto insurance is really expensive. A typical insurance policy... Read More

MSA or HSA: Can I Keep My MSA Or Do I Need to Convert it into an HSA?

The Medical Savings Account (MSA) is an older form of... Read More

Home Insurance: Premium Protection In Case Mishap Takes A Rain Check

My whinstone house my castle is, I have my own... Read More

Do An Auto Insurance Comparison And Benefit From The Savings

It is very important to do an auto insurance comparison... Read More

Business Insurance ? And What You Need To Know

Getting your business up and running is exciting, challenging and... Read More

Motor Vehicle Accident Insurance Claim Guide

This is a FREE Insurance Claim GuideYour "Motor Vehicle" can... Read More

The Great Value Of Accident Photographs

You were humming along on a bright and sunny day... Read More

Gain An Advantage Over Your Competition By Controlling The Cost Of Your Health Insurance

As many of us expect, the New Year will bring... Read More

Auto Insurance Information Online - Compulsory Auto Insurance

In 47 of the 50 United States, it is illegal... Read More

10 Tips to Save on Healthcare Insurance

Americans shopping for their own healthcare insurance can substantially cut... Read More

Discount Life Insurance Will Give You The Best Protection You Need

There is always a chance that there is a better... Read More

Why Boats Are A Pleasure... But You Still Need Boat Insurance

One of the greatest pleasures that a man can have... Read More

Six Ways to Cut the Cost of Your Auto Insurance

Is your auto insurance bill $12000 a year or even... Read More

Car Insurance Online ? Benefits of Applying for Auto Insurance Online

Drivers are applying for auto insurance online not just for... Read More

3 Important Moving Insurance Tips

Because of the many problems that can occur when you... Read More

Insurance Claim Handling Online - TPA Adjuster System

Claims management and administration software systems enable insurance claims adjusters,... Read More

Life Insurance Information

Life insurance is a personal insurance plan designed to pay... Read More

Sleep-At-Night Coverage With A Private Health Insurance ( Affordable Health Insurance )

Health Insurance: a sense of dissatisfactionThe three C's, customization, consumerization... Read More

Guide to Life Insurance

Here is a useful guide to life insurance. Simply put,... Read More

Long Term Care Insurance - Low Cost Alternatives For Budget Conscious Seniors!

With Nursing home Cost's running $4,000 to $6,000 a month... Read More

The Many Benefits of Travel Protection Plans

Many people purchase insurance thinking I want full coverage and... Read More

An Intro To Life Insurance

There are many options available for life insurance, and for... Read More

Finding California High Risk Truck Insurance

California high risk truck insuranceIf your are in need of... Read More

Auto Insurance Rates

Auto insurance rates will vary depending on the insurance agency,... Read More

Can I Really Get Life Insurance, No Exam Required?

Changing the way that life insurance is bought and sold... Read More

Health Savings Accounts (HSA): Do They Vary From State to State?

The Health Savings Account (HSA) is an amazing tool that... Read More

Disaster Decision - Do You Need Insurance?

The expenses involved with owning a home can be overwhelming... Read More

What Do You Mean My Auto Insurance Policy Doesnt Cover This!!

Auto insurance is an agreement between you and your insurance... Read More