posted by Chris | Hold back your excitement as you read this missive!
Seriously. Most people need life insurance for either protecting their families (or business partners) or for estate planning. There are several types of life insurance policies including universal life & variable life ( aka, permanent insurance) and term insurance.
Some policies include a savings component and some do not. Today we will concentrate on term insurance.
Term insurance is pure life insurance with no savings component otherwise known as cash value. How it works:
1. It provides protection for a specific period of time for a specific dollar amount. For example if you buy a 10-year policy with a one million dollar death benefit – if you die in year 9, your beneficiary will receive one million dollars. If you die in year 11 of a 10 year policy your beneficiary will receive nothing.
2. You can usually purchase term insurance starting with a death benefit of $200,000 up to several million dollars of death benefit.
3. You can choose from 10 to 30 year guaranteed policies and even longer. There are lots of companies offering term insurance with a host of terms. Some offer level premiums and others offer policies where your premiums increase annually.
4. Can be converted to permanent life insurance depending on the contract and company.
The big question is how much coverage does one need?
You can check with your financial advisor or an insurance salesperson. You could also do an internet search for a life insurance needs analysis. That will assist you in determining the amount of life insurance coverage you need.
It's wise to get several quotes, so you can compare the term, the price and the quality of the company offering the insurance.
Insurance may not be exciting – but to your beneficiary it may just be invaluable.
Christopher J. Conner
Certified Financial Planner TM
Certified Fund Specialist
Managing Director
5200 W. Newberry Road E-7
Gainesville, Florida 32607
352-225-3132 (Fax) 352-225-3784
Cell 352-281-4646
A Few Other Posts by Chris:
Other Posts By Chris
* Shaken, not Stirred: Thoughts on Market Volatility
* What the Dow Jones Industrial Average Means to You
.
Advisory Services offered through Jonathan Roberts Advisory Group.
Securities offered through J.W. Cole Financial, Member FINRA/SIPC
Any statements expressed with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance may not be statements of historical fact and may be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as "expects'", "will," "anticipates," "estimates," "believes," or that by statements indicating certain actions "may," "could," or "might" occur no representations, warranties, or guarantees as to the accuracy or completeness of this information. This is not an offer to purchase or sell securities. Past performance is not an indication of future results.
Chris, Excellent job breaking down the different types of life insurance coverage. It's amazing how many people are unclear about something so important as their life insurance, especially the difference between Term and Permanent coverage. Keep up the good work!
Term Life Insurance FAQ's
http://www.termlifeinsurancefaqs.com
Posted by: Term Life Insurance FAQ's | March 20, 2009 at 12:40 AM