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How much
life insurance do I need?
This is a good question, and the answer is different for everybody.
Each and every situation is different, and those differences should
be considered during the purchase of a permanent or term life insurance
policy. Some things to consider when determining the amount and
type of life insurance are; Mortgage protection. Do you want your
policy to pay off your mortgage, and any other debt you might have?
If you have children the money provided from a death benefit could
be used to pay for college. These are just a few things to consider
when purchasing life insurance. Don’t hesitate to contact
us if you want to find out what life insurance policy is right for
your situation.
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What
types of life insurance are there?
1. Permanent life insurance is a form of life insurance such as
whole life or endowment, where the policy is for the life of the
insured, the payout is assured at the end of the policy (assuming
the policy is kept current) and the policy accrues cash value.
This is compared with Term life insurance where insurance is purchased
for a specified period (typically a year, or for level periods such
as 5, 10, 15, 20 even 25 and 30 years) where a death benefit is
only paid to the beneficiary if the insured dies during the specified
period.
Permanent life insurance originally was offered as a fixed premium
fixed return product known as whole life insurance also known as
cash surrender life insurance. This offered consumers guaranteed
cash value accumulation and a consistent premium. Consumers later
wanted more flexibility which was offered in the form of universal
life insurance. Universal life insurance allows consumers flexibility
in when premiums are to be paid and the amount that they would be.
Universal life policies also allowed consumers to permanently withdraw
cash from the policy without the interest associated with the loan
provisions in whole life policies. Universal life policies retained
the fixed investment performance of whole life policies. Variable
life insurance follows the mold of whole or universal life, but
it shifts the investment risk to the consumer along with the potential
for greater returns. Variable universal life insurance combines
this with the flexibility in premium structure of universal life
to create the most free form option for consumers to manage their
own money (at their own risk). Variable universal life insurance
policies are considered due to the favorable tax treatment of all
permanent life insurance policies and their potential for greater
returns than other insurance products.
2. Term life insurance is the original form of life insurance and
is considered to be pure insurance protection because it builds
no cash value. This is in contrast to permanent life insurance such
as whole life, universal life, and variable universal life.
Term life insurance is temporary, as it covers only a specific period
of time, the relevant term. If the insured dies during the term,
the death benefit will be paid to the beneficiary. Because the term
expires the insurer often does not have to pay out making term insurance
the most inexpensive way to purchase a substantial death benefit
on a coverage per premium dollar basis.
Because term insurance is temporary in nature its primary use is
generally to provide for covering temporary financial responsibilities
of the insured. Such responsibilities may include but are not limited
to consumer debt, dependent care, college education for dependents,
and mortgages.
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Why
do I need life insurance?
The answer to this question ties into the how much life insurance
do I need question. Different situations call for different amounts
and different types of life insurance coverage. Some of the most
common reasons for a life insurance policy are to pay off any debt
or mortgages, to set up a college fund for your children, and to
donate money to charity.
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How
long will it take to get my life insurance policy from Buyinsurancenow.com?
It could take as little as 15 minutes and as long as a few months
depending on what type of life insurance policy you are interested
in. Our online products, such as Express Term, are instant issuing
policies. That means that once you have completed the application
process, which only takes a few minutes, you can print out the policy.
A policy like that does not require a medical exam, or anything
that a traditional life insurance policy would require. We do offer
traditional life insurance policies too. The traditional way of
obtaining life insurance does take a lot longer, but it has its
benefits. An online policy will typically have a max benefit of
$150,000. A traditional policy can have a benefit with a much higher
limit. To obtain a traditional life insurance policy a medical exam
is typically needed. Once the results from the exam get back to
the insurance carrier it can take a few weeks to a few months to
get the policy.
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