INSURANCE

There are two basic types of life insurance: term and permanent. Term insurance is purely life insurance while permanent (aka "cash value" or "whole life") policies include a savings element.

You've probably heard lots of sales pitches and marketing hype regarding cash value polices, and other arguments about how term policies are the better deal. The truth of the matter depends on each persons individual situation.

Benefits of a Term Life Policy
1. It's straightforward. If you die during the term of your policy your beneficiaries get paid -that's all there is to it.

2. It's inexpensive. You aren't paying anything extra to fund a savings account or cover investment fees. And because the market is so competitive for term insurance, companies have a huge incentive to keep prices low.

3. It's easy to shop for. With relatively little effort you can comparison shop and assure yourself of a good deal.

4. You pay only for what you need when you need it. You typically need life insurance coverage for a specific period of time (until the kids are out of college, for instance).

Benefits of a Permanent Life Insurance Policy
1. Flexibility. A permanent plan can give you access to some or all of the premiums that you have been paying for in a way favorable to your taxes.

2. It's with you until you die. This type of policy coverage is guaranteed for your life with no out of the blue payment increases. A term policy will expire at a certain date, and a renewed policy could have much higher premiums.

3. Inheritance. Maybe the best reason for a permanent policy is to make sure your estate and investments don't get eaten up by the government. A permanent policy can provide peace of mind that your family and loved ones will be taken care of for the future.

Remember, the decision to buy a permanent or a term life insurance policy will depend on your situation, your age, your financial well-being, and other factors. If you are a young family with some investments to protect but not financially stable a term life policy might be a good idea to protect those investments and your family. However, if you are financially stable with considerable investments, it may be a better decision in the long run to purchase a permanent plan.

Life Insurance Articles
Life Insurance Explained
A simple explanation of life insurance and why it is a good idea in planning for the future.
”Life insurance is insurance that will protect your family and/or specified dependents in the event of the policy holders death. In general, it is an essential component in planning for the future...“
Read More >> How Much Do You Need?
Things to consider when deciding how much life insurance you need. "A good rule of thumb is to aim for a policy that will cover 2-6 times your annual income. If your yearly income is..."
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Do You Need Life Insurance?
Questions to ask yourself in determining if you need a life insurance policy.
”It depends on your situation. Several key questions follow below to help give you an idea of signals pointing to ”yes“...“
Read More >> Whole Life Insurance
No nonsense explanantion of whole life insurance.
”Whole life insurance provides permanent protection for your dependents while building a cash value account. With this type of insurance, the insurance company manages the policies various accounts...“
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What Life Insurance is Best?
Comparison of term and permanent life insurance policies.
”There are two basic types of life insurance: term and permanent. Term insurance is purely life insurance while permanent (aka "cash value" or "whole life") policies include a savings element...“
Read More >> Variable Life Insurance
Explanation of what a variable life insurance plan does and does not offer.
”Variable life insurance provides permanent protection for you and is the type of life insurance with account flexibility for the more risk-oriented policy holder...“
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Types of Life Insurance
Learn about the different types of life insurance plans and their benefits and drawbacks, including, whole, term, universal, variable and variable universal.
”Term life is the simplest and least expensive type of policy. It's pure insurance with no cash value account. A term life policy has only one function...“
Read More >> Universal Life Insurance
Learn about why a universal life insurance is a more flexible policy. "Universal life insurance provides permanent protection for your dependents and is more flexible than whole or variable life..."
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Universal Variable Life Insurance
Learn about how to control the cash value amounts in a life insurance policy.
”Universal Variable life is the type of insurance which gives you more cont