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- What is the difference between whole life and term insurance?
- Good question, think of insurance as a broad spectrum, there is something for everybody, and one size doesn't fit all! So, with that in mind, think of Term
Insurance as renting. A Ten, Twenty, Thirty year term is like renting a block of time for ten, twenty or thirty years.
If effect, you are saying, to the insurance company, for the next 30 years, as long as I am paying my premium, you will protect
me for what ever the death benefit has been calculated. For example, on a 30 year level term for $100,000.
The cost of the insurance is the same for the next 30 years, the death benefit $100,000 is the same for 30 years. If you die at any time during that
30 years, and you have paid your premium, the company will pay your beneficiary $100,000. At the end of 30 years, all bets
are off, so if you need life insurance at that time, you would have to pay a much higher premium, because you are 30 years older.
- With Whole Life, or Cash
Value Life Insurance, the Insurance company is not trying to gauge the policy holder. Your premium is higher because it is going to last a life
time. Whole Life Insurance is guaranteed, that the premium will never increase and the death benefit will never decrease, irregardless of the economy
or the stock market. Unlike term, the longer you own that policy, the more cash value it generates. So, if you wanted to prepare
for retirement, eliminate financial debt for your loved ones.or start a college savings fund, these are all excellent reasons to use cash value life insurance.
- What is Universal Life Insurance
- Think
of Universal Life Insurance as a hybrid between term, and whole life. In effect, you are paying for term insurance, and investing
the difference. Like Whole Life, Universal Life accumulates cash value. With a Universal Life Policy, you have more control
over the premium. Sometimes called flexible premium or adjustable premium life insurance . If things become tight financially, you can reduce your premium or even skip your premium all together. You can increase
your premium if you have too, however, as with any investment, there are IRS guidelines one must follow.
- What is
the best life insurance?
- That depends on your needs, Do you need something for a funeral,(final expense insurance),
a college (savings)education, to protect your mortgage, to pay for your estate taxes, eliminate tax debt ect...A good agent is going to find your needs and make the appropriate recommendations. We are always looking
for a good testimonial or a referral, feel free to contact us.
- Why can't I just get a quote?
- Quotes can be very deceptive. If you check the Internet, or see your
local newspaper, many times you will see quotes for insurance. The problem with a quote, if you read the fine print, the rate
quoted is usually preferred. The average policy holder will not qualify. The quote, does not take into effect
your current health or risk factors. Which may increase the cost of the premium. Secondly, buying insurance over the
Internet or through the mail can be a costly mistake. Many times, people buy "accidental life insurance, or credit protection
life insurance" thinking they are buying life insurance. If you need insurance, sit down with a qualified insurance
agent and discuss your needs and your budget. Not all insurance is the same, and buying something over the Internet or through
the mail, many times is a costly mistake!
- I have coverage where
I am employed, isnt that enough?
- When purchasing Life insurace, your
employer is picking up part of the cost. The insurance company looks at everyone as a "group".
Therefore, the coverage is usually cheaper. The problem lies in several areas. First you normally do not have enough coverage
(most employers give employees anywhere from one to three times their salaries.) At best, how long will your suvivor last
financially even at three times your current salary. Secondly, you do not own, the insurance. If you leave, retire, are downsized,
outsourced, or layed off, you lose the coverage. If you have to pick up coverage after you left the job, for whatever reason,
it is going to be more expensive. The cost could have been prevented by owning your policy or purchasing life insurance at
your first opportunity. Remember, the older one gets, the more expensive life insurance will cost. Look for us at upcoming
seminars.
Have a question for us? Use the form below, and we'll post the answer right here on this page.
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