Life insurance is, without a doubt, something that just about everyone should have. But not everyone should have the same type of policy. Here's some advice on one of the the many different flavors of life insurance, and any given type may or may not be suitable for you. One little known type of life insurance is variable universal life insurance, or VUL for short. Like other universal life insurance policies, VUL builds cash value and is paid when the insured dies, regardless of whether he or she is still paying premiums. But unlike your average universal life policy, the...

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When it comes to buying life insurance, shopping around is a must. There are lots of life insurance companies to choose from, and you can buy through an agent or directly from the company. Most companies offer a variety of life insurance products, and some will meet your needs better than others. The first thing that life insurance shoppers need to know is that there are two main types of life insurance: term and permanent. Term life insurance is purchased for a period of up to 30 years. The policyholder is covered for the duration of the term as long...

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Having adequate insurance coverage for your life, health, home, and automobile is a sound part of any individual’s overall financial planning. But this insurance coverage isn’t free, of course. You pay premiums for each type of coverage you have, and you pay higher premiums in order to get more coverage. At a certain point – especially if you have a change in your life or your family situation – you might find yourself paying premiums for coverage that is excessive, or no longer necessary. There are a number of different circumstances where it may be appropriate for you...

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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...

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So you’ve probably seen some commercials lately about how term life insurance premiums are at historically low levels and you should take advantage of those lower prices now. But first, here is a quick tutorial and advice on why you should have life insurance before discussing how much an individual should own. So what is term life insurance? A term life insurance policy is one that has a set time frame on the coverage period – anywhere from one to thirty years – and when it reaches the end of that term, you can decide whether you’d like to renew...

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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...

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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...

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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...

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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...

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