First-Time Universal Life Insurance
Reader’s Question:
I’m looking to get my first universal life insurance policy for my work here in Georgia, I’m wondering how I should go about doing this?
Ayers
Savannah, GA
For many people, choosing a life insurance policy is a big deal, and it should be! With literally hundreds of insurance companies out there, you would want to make sure that pick the right kind from the right provider. Life insurance is a long term commitment so you want to make sure you get it right (so you won’t end up knocking yourself on the head ten, twenty or even thirty years down the road). So here are a few tips and suggestions to help you get that very first life insurance policy of yours there in Georgia:
1. Ask yourself why you need life insurance
Knowing why you need life insurance, whether for work as you stated or maybe to give you, and your family security for the future in the event of your untimely demise, would help you narrow down your choices and give you a greater chance of finding the life insurance policy best suiting your needs.
2. Know what kind of policy to get
If you are just looking to get life insurance coverage due to the nature of your job then Term Life Insurance would be best. This is a type of life insurance coverage that is much cheaper, simple and is meant to be kept for only a certain period of time.
3. Shop Around
The Web is a great resource for those looking to get quick, accurate life insurance rates to compare. You should at least get five quotes before considering a provider.
Universal Life Insurance
Reader’s Question:
Since I am planning to buy my own life insurance, I’d like to ask what are the benefits of getting a universal life insurance policy?
Lovely
Hillsboro, OR
A universal life policy can be atoned to a fusion between a term life and a tax-deferred interest accruing savings account.
In buying one, a benefit that you will get is that you not only accumulate tax deferred savings, but you also may not have to pay premiums throughout the entire duration of the policy. If the money required to pay for the death benefit and other associated costs accrues in the savings fraction of the policy, premiums eventually may not be needed to keep the policy in effect.
Most people who would benefit from universal life insurance policy are those who need life insurance into their 70’s as it is an investment medium as well as a life insurance policy. This would give enough time for your savings part to accumulate into an investment. Most individuals will not want their life insurance to come too late in their lives. In that case, it might be more favorable to acquire a term life insurance policy and prepare a suitable retirement investment savings account such as an annuity.
If you feel like universal life is the right insurance for you, you might want to consider a few points. First, ensure that you plan to have the policy for a long period of time given that you will need to have the policy in effect for at least fifteen years to qualify for any return from the policy and second, make sure you have a well-informed insurance agent in your area who can help you review your other alternatives such as whole life and term insurance.
Life Insurance in New Jersey
Reader’s Question:
Hello, I’m from Irvington, New Jersey. Please explain, why is it that term life insurance policy is cheaper than whole life insurance policy?
Nicole
Irvington, NJ
Hello there Nicole.
This is the common question for most people who are looking for their money’s value.
Bear in mind that “cheapest doesn’t always equivalent to the best option”. Term life insurance policy is cheaper compared to whole life insurance policy simply because term life insurance covers you for a limited period of time only. The coverage end up when the specified number of years is completed.
Compared to whole life insurance, term life insurance does not build up cash value. If you are going to surrender or terminate the life insurance policy you cannot get your money back. While a whole life insurance has a cash value, its insurance and at the same time also an investment that could give you cash equivalent in the long run.
These are the direct comparison between term life insurance and a whole life insurance. It is also the main reason why term life insurance is cheaper than whole life insurance.
To avail free quotes, you can go to websites that offer free quotes such as this one. It is as simple as filling out a form, and you will be given free quotes without any obligation. I suggest you do compare at least 5 rates from different companies before you buy any insurance from your area.
Universal Life Insurance Florida
Reader’s Question:
I have encountered a person mentioning about investing in variable life insurance. Then I have another friend who received a proposal for variable universal insurance. Are the two the same in Florida concerning life insurance?
Cheska
Gainsville, FL
I’m sure that you have also been approached by life insurance agents in Florida because your friends have been contacted too. Anyway, to answer your question, both variable life insurance and variable universal life insurance are permanent life insurance that has the life coverage and the cash value. Meaning, you are not only paying for life insurance, you are also investing for cash which accumulates over a period of time. These are the main similarities of the two life insurance products.
The variable life insurance has cash value which is invested in stocks, bonds and mutual fund for money market. This seems attractive in a sense that these investments grow quickly and in large amount. I know you’ll agree that stocks and bonds are good investment when it is performing well. However, there’s a risk that these investment may not work well thus posing risk to your money. Once the investment is a failure, you would decrease the face amount of your life insurance together with the failed investment. However, there are policies of variable life insurance that guarantees death benefit within minimum level.
Variable universal life insurance has the same characteristics as the variable life insurance. What makes it different is that it has the features of the universal life insurance in premium payment. Just like universal life insurance, the variable universal life insurance is flexible in premium payment because it is dependent on the prevailing market interest rate. Such flexibility in premium is the only difference with the variable life insurance.
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