Term Life Insurance

Here's breaking news about term life insurance.

Wikipedia says: "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 provides coverage for a limited period of time, the relevant term. After that period, the insured can drop the policy or pay annually increasing premiums to continue the coverage. If the insured dies during the term, the death benefit will be paid to the beneficiary. Term insurance is often the most inexpensive way to purchase a substantial death benefit on a coverage amount per premium dollar basis."

Angie Mohr writes:

As a small business owner, you are used to having to deal with insurance issues -- everything from insuring your computers and equipment, your life, and for the possibility of disability.

Hopefully, by this point, you will also have integrated your business insurance plans with your personal insurance. You know how your own death or the death of your spouse would affect your business, but what about the death of your children? It's something, of course, that none of us wants to think about. But not taking the time to think through the financial implications of a child's death can leave you open to aggressive marketing efforts used by some unscrupulous life insurance agents.

Child life insurance is a big business in Canada. Companies such as Gerber and many others specialize in selling it and tout many benefits beyond its original purpose -- to insure the costs of the death. Let's start by looking at the difference between whole life and term policies.

A term life policy is all insurance and only insurance. That means that if an insurable death occurs, the policy pays out the face value. If you have a $10,000 policy, you will receive $10,000 upon the death of your child. Term insurance gets its name from the fact that premiums are guaranteed for a specific term -- often 10, 15 or 20 years. As the child gets older and becomes an adult, the costs for a term of insurance become more expensive.

Report:

It is important to know the difference between whole verse term life insurance before you start to shop. Whole life (also called permanent) policies are insurance policies that accrue cash value over time and usually pay dividends. Buying a whole life policy is an investment. As the named insured, you have the ability to draw against the cash value. Whole policies are more flexible and more expensive than term policies. Term life polices are less expensive and inflexible. Term policies are bought for a designated period of time. If the named insured dies before the policy expires, the benefits are paid. However, if the policy expires before the death of the insured, there are no return premiums. As the insured you have the option to renew the policy for another specified period of time, or let it expire.

Report on selecting insurance:

1) Final expenses: You will have to spend this amount for your daily needs. So put it in your calculator.

2) Mortgage Balance – Sum up your entire mortgage balance and add to final expenses.

3) Short Term Debt – Add complete credit card balances and installment loan to your mortgage balance and final expense totals.

Now you are ready to purchase a life insurance policy. You are recommended to purchase a life insurance policy for your children’s education to meet future educational needs.

You should estimate higher education costs and multiply by the number of children you have. After you are ready with all your details you can request for a life insurance quote online.

You should be careful regarding the two types of life insurance. 1) Term life insurance: If you are young and living with your family, then term insurance will suit you the best. If death occurs then the beneficiary will get the amount. 2) Permanent or whole life: If your age is more than 30 then, whole life insurance is best for you because it pays money to your family whenever you die. For requesting quotes you should have all information regarding whole life insurance rates and the policies.

I recommend these links about term life insurance:

Term Life Insurance