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| Life Insurance Basics |
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| Written by Jeff Cline |
| Monday, 23 February 2009 10:16 |
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When thinking about purchasing life insurance it can be very overwhelming. There are so many terms and details that are hard to make since of. Life insurance is a great way to protect your future and you should look at a few basics to help you understand. Why do people buy life insurance? They buy life insurance for the pure fact of leaving family or a business with plenty of money to manage life without them. People want to leave this earth knowing there assets are protected. If you have no family, business or charity you wish to take care of then you should not invest. The most popular of them all is Term Life Insurance. Term is simple and affordable to most budgets. Term Life is buying Life Insurance for only a specified length of time. Terms can be 10,20 or 30. If you out live your term the policy pays nothing. Basically, you pay a fixed premium for a fixed amount of time. If you die during the term the policy will pay someone on your behalf. If it expires you get nothing. A change in health status does not affect the policy, the catch is once the term has been reached it completely vanishes. Another kind of policy is Whole Life insurance. Whole life is just as it sounds. It is insurance that will cover you for your whole life. So as long as you keep up with the premium you will always be guarnteed your dependents will get something. One advantage to purchasing a Whole Life policy is that it earns a Cash Value. The Cash Value is the amount you would be paid if you should cancel your policy before your death. Some confuse this with the Face Value. Face Value is the amount it will pay your dependents if you keep the policy. There is also a Universal Life insurance. I would tell a newbie to the insurance world to be sure you understand all the details before opting for this type of policy. Basically the money you put into the policy you can invest in stocks and bonds and such to contribute to your death benfit. However, yor dependents would be guarnteed a minimum should you not invest well. The last type is Variable Life insurance. To make it very simple it is just like the Universal except the fact that your dependents are not guarnteed a minumium. They only get the contributions from investments you have made. About the Author: If you are searching for LOW COST TERM LIFE INSURANCE then call agent Jeff Cline. He is a very knowledgable agent and can help you find what you need. can i sell my term life policy?, need help with this? Jeff can help with that also. Give him a call morning, noon or night at his toll free number 866.526.9669. Kindly provided by LJ-Marketing.dk You are welcome to use this article on your own website, if you include the link just before this text. |
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