Archive for the ‘Life Insurance’ Category
June 2nd, 2011 | 
Author: I am planning to buy an life insurance policy. I have heard about this new insurance product- term insurance. I wanted to know its benefits and how is it different from life insurance. thank you for your help. I would really appreciate your efforts if you can help me out with this as soon as possible. thanks!
Term insurance is Life Insurance.
You have 2 options, basically. Permanent insurance and term insurance.
Term Insurance costs less up front. Its like renting an apartment. You get to choose a time frame from 1 year to 30 years. It’s a good policy if you need lots of coverage now but have little money, like a young family with lots of kids or someone with a mortgage and school loans, etc. It is cheap because it seldom gets paid out because most people live beyond the term of the policy.
Permanent insurance is there when you will most likely need it because it will never end as long as you keep paying or have paid enough into it that it will sustain itself. It is cheaper in the long run because if you cancel it after 20 years, you get all your money back. Its NOT an investment product, don’t let anyone fool you. But, it isn’t a bad product.
Your best bet, depending on your needs (consider if you want debt paid, income replacement, help with school, etc) is to purchase a combination. Give yourself $50K of permanent insurance (cover burial expenses, final bills, etc) and take out term for the rest of your debt.
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I am recently out of the military and need to purchase an individual health ins policy. However, I am not sure which ones are the best. I am a student, do they offer any good student policies? Also, is the SGLI to VGLI conversion a good change to make? If not, which is better term or whole life insurance policies?
OK, you’re talking different horses here.
For Health Insurance, what is best? Lowest monthly premium? Least out of pocket costs when you visit the doctor? In either case, if you don’t want the student plan (major medical with massive deductibles, but low premium) you should go see a local, independent agent for a real health Insurance policy, not one of those medical discount scams.
For Life Insurance, what’s the GOAL? Most people are best off with term – lowest premiums for the highest coverage. A FEW people have goals best met with whole life insurance. The key is, SET THE GOAL FIRST, then find the product that fits the need at the lowest cost.
And if you buy both through a local agent, you won’t get scammed.
My sister and her husband just found out they’re pregnant, and now her husband is researching life Insurance. Which is best for a new family? They make average income for a couple.
I meant more along the lines of which is best, Universal Life, Term Life, Whole Life, etc.? They do have an insurance company already. Sorry for being unclear.
At this point in their life they are probably at a point where they need to be paying off debts, saving for a house, and starting to save for retirement and college. They need to get the most risk protection for their money.
Most people in this situation will be best off buying a high face amount term Life Insurance policy with a 20 or 30 year term. If they are in their 20’s or early 30’s the premiums will be very cheap. They will want to purchase about 7-10 times their individual incomes. If only one of them works they will want to purchase something on the nonworking spouse to pay for childcare and housekeeping expenses in the event something happens.
Paying the lower term premium will allow them to devote more money towards debts, house savings, etc. while providing them the most death benefit for their money.
The pregnant wife will have to wait until after she has the baby to get life insurance. Most companies want to get an accurate picture of the wife’s health and we all know that can be difficult during a pregnancy. She should just have to wait a few months after the baby is born and her health and weight are pretty much back to normal to proceed. The husband should go ahead and get the ball rolling.