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Term or permanent life insurance? Part IV of IV

Saturday, October 10, 2009

Types of permanent life The real wild card in terms of price is permanent insurance, because most policies have guaranteed and non-guaranteed portions. There are three main types of permanent insurance. Traditional whole life: This type offers the most guarantees. The annual premium is guaranteed, and there are minimum guaranteed cash values and death benefits. Most whole life policies these days are "participating," meaning that the dividends they earn can be used to increase the cash value and/or death benefits, decrease the premiums or be refunded in cash. If you are a conservative investor and also have trouble saving, traditional whole life makes sense. Universal life: If you need premium flexibility, especially in the early years of the policy, universal life is for you. Universal life insurance was developed in the 1970s, when insurance-industry regulations changed to allow insurers to be more competitive with other financial-services providers. Universal life insurance is more flexible than traditional whole life, because premiums can vary from year to year and sometimes can even be skipped. Universal life has maximum guaranteed premiums and minimum guaranteed cash values and death benefits. Instead of dividends, universal life policies earn interest at the credited interest rate determined each year. Variable life: If you consider yourself a knowledgeable and risk-accepting investor, check out variable life. Variable life insurance has the fewest guarantees and therefore offers the greatest potential for cash-value increases. There are required guaranteed annual premiums and a guaranteed minimum death benefit. However, there is no guaranteed cash value, and you have to select the investments for your policy. Buyers typically are offered a variety of mutual fund accounts, ranging from money market funds to aggressive growth funds. Not an investment toollife insurance Life insurance should never be purchased solely as an investment. After all, some of your premiums are being used to buy death-benefit coverage and to cover other expenses (including sales commissions). Life insurance should not be purchased on children as a way to save for college, and make sure you (and your spouse) have all the coverage you need on yourselves before you buy any coverage on a child. When you make your purchase, avoid all of the fancy riders, but do consider the waiver of premium, which suspends your premium payments but keeps the policy in place if you become disabled. If you find that you cannot afford all of the permanent insurance you have decided you need, consider a combination term-plus-permanent policy.

Term or permanent life insurance? Part III of IV

Friday, October 9, 2009

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Term or permanent life insurance? Part III of IV By Ginger Applegarth http://articles.moneycentral.msn.com/Insurance/InsureYourLife/TheRagingDebateOverTermvsWholeLife.aspx Guidelines to live by when buying Even with all of these variables, there are some guidelines you can follow. The key is how long you plan to keep the policy. If the answer is less than 10 years, term is clearly the [...]

Term or permanent life insurance? Part II of IV

Thursday, October 8, 2009

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Term or permanent life insurance? Part II of IV By Ginger Applegarth http://articles.moneycentral.msn.com/Insurance/InsureYourLife/TheRagingDebateOverTermvsWholeLife.aspx Permanent life insurance is more expensive As you might expect, permanent life insurance premiums are more expensive than term premiums because some of the money is put into a savings program. The longer the policy has been in force, the higher the [...]

Term or permanent life insurance? Part I of IV

Wednesday, October 7, 2009

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Term or permanent life insurance? Part I of IV By Ginger Applegarth http://articles.moneycentral.msn.com/Insurance/InsureYourLife/TheRagingDebateOverTermvsWholeLife.aspx Few people who have bought insurance — or even window-shopped for it — have escaped the debate over term versus permanent insurance. And the wrong kind of life insurance can do more damage to your financial plans than just about any other [...]

Women receive more life insurance benefits than men, survey says

Tuesday, October 6, 2009

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Women receive more life insurance benefits than men, survey says By Bob Graham in IFAwebnews.com A gender gap exists in the amount of life insurance benefits received by men and women after the death of a spouse, according to a survey by MetLife. In general, wives who received life insurance benefits after the death of [...]

Life Insurance-How much is enough?

Tuesday, October 6, 2009

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Life Insurance-How much is Enough? Life insurance, the decision about it is a controversial one. Term vs permanent. I will be discussing the various points of view this week so tune in. As your living situation changes ( the value of your home, the income you will replace for example), don’t forget to review your [...]