Insurance Advice | InsuranceAdvice.com » Life

Life Insurance Basics

admin — Tue, 13 Jul 2010 13:43:21 +0000

How important is life insurance? Many people think they can go without it. However, for most people it’s a necessity. Here is some advice about the basics of life insurance. For some people, it’s more critical than others. For instance, if you are in your twenties and have no financial dependents, there is little point in getting it. On the other hand, if you do have people relying on you financially, then it definitely would be wise. The only time it wouldn’t be worth it is if you have enough savings to cover all expenses after you die. However, this...

Life Insurance Tips

admin — Wed, 17 Mar 2010 14:38:35 +0000

The average life insurance policy isn’t hard to understand – you take out this kind of policy to basically get life insurance coverage to protect your family. So, if you die unexpectedly, the insurer will pay out on the policy to give your next of kin a lump sum or an income according to the terms of your agreement. In most cases you will pay for your life insurance policy on a monthly basis for as long as the policy is in force – the payments here are usually referred to as premiums. It is critical that you read the...

Types of Life Insurance

admin — Wed, 18 Feb 2009 21:37:39 +0000

There are six basic types of life insurance: 1) Term: Term life insurance is the simplest kind of life insurance because it pays if death occurs during the term of the policy, which is usually from one to 30 years. There are two kinds of term life insurance: Level term means that the death benefit stays throughout the duration of the policy, and decreasing term means that the death benefit drops in one-year increments over the duration of the policy. 2) Whole life/permanent: Whole life or permanent insurance has a level premium and pays a static benefit whenever you die. For...

Replace your Life Insurance Policy?

admin — Wed, 18 Feb 2009 01:48:46 +0000

Switching life-insurance policies can sometimes save you money. But don't jump without looking carefully. It's often a bad idea to cancel a cash-value, "whole-life" policy. True, these policies carry high premiums, and agent commissions aren't cheap either. But if you cancel one, you'll have little to show for years of financial sacrifice. That's because it usually takes five years or more before whole-life policies build any significant cash value.

If the policy's premiums have become too much of a burden, your insurance company may offer a conversion to a term policy under better terms than if you merely canceled. Policy...

Buying Life Insurance

admin — Tue, 10 Feb 2009 15:02:02 +0000

Having life insurance is an important element of your overall financial plan – especially for families. If you have a spouse and children who depend on your income and you don’t have extensive resources, then life insurance can be used to help pay for expenses in case you pass away. Single people without dependents typically don’t need the same amount of life insurance because they don’t have as many responsibilities that will outlive them. Life insurance is not a replacement for a long-term savings or investing strategy but an additional cushion. Depending on your financial situation, life insurance and its...