Life Insurance To Prevent Financial failure In Your Life

by Englewood » Fri Nov 20, 2009 05:55 pm

Term life insurance normally provides the best value and coverage option for most people. It differs from whole life insurance, universal life insurance and variable life insurance in that it can be up to 10 times cheaper, but if you do not use the coverage before it expires there is no redemption value for the money that you paid into the insurance policy. On the other hand, whole life insurance, universal life insurance and variable life insurance are known as cash policies because they provide an investment component and other benefits that can provide income to you in your retirement years

Once you select a type of policy you will need to consider how much coverage to get. This decision should focus highly on how much your loved ones will need to comfortably live without your income. In making this decision ensure you think of long term expenses, including college expenses, mortgage payments, weddings, private school tuition, credit card debt payoff, etc. In selecting the amount of coverage every persons situation is unique, but a good rule of thumb is to consider for the worst in setting how much to insure yourself for. For instance, if your children are your primary dependents, you should assume the worse. A worse case situation would be a tragedy happens to you and your spouse at the same time and your children are left without parents. You may say to yourself that this will never happen, but every year couples leave their children behind due to unforeseen tragedies such as car accidents.

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Total Comments: 7

Posted: Mon Nov 23, 2009 08:58 pm Post Subject:

I'm not clear on how perm or whole life cover is charged.

Do you pay an annual premium with guaranteed right of renewal, or pay a single lump sum at inception and are then covered for the rest of your life? what happens if you cancel the policy after a few years - any return of premium?

Posted: Thu Nov 26, 2009 05:28 am Post Subject:

I guess it would vary as per the nature of the policy. There are some policies that offer a good long term return for an one-time lump sum payment.

Posted: Sun Dec 13, 2009 08:47 pm Post Subject:

It's a guaranteed premium (WL) from day one, until the policie's paid up year, or endowment year. You can also buy single premium paid up whole life insurance (these contracts are Modified endowment contracts).

Posted: Fri Dec 18, 2009 10:07 am Post Subject:

Hi...All. I found the same post by englewood in insuranceforum1. Great I found the same here.

Posted: Fri Dec 18, 2009 12:13 pm Post Subject:

thanks for that heads up rozer, all three of his posts are on both boards.. :roll:

Posted: Wed Dec 23, 2009 03:41 am Post Subject:


How nice of him/her to make the life insurance PSA for us all.

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