by insuranceuae » Mon Jul 23, 2012 08:09 am
Comparison between term life insurance and permanent has been a thought provoking debate. Term life insurance provides coverage at a fixed rate of payments for a limited period of time. It is the most affordable life insurance as it has the lowest premium in the early years. In case of any unfortunate event, investment in term life insurance will cover your family against financial problems.
For Permanent life insurance, the payout is assured at the end of the policy, and the policy accrues cash value. Permanent life insurance is used for life-long protection. As long as you pay the premiums, the death benefit will be paid.
Benefits of Term Life Insurance
ñ Term life insurance is the most cost-effective, simple, and appropriate insurance policy. The main advantage of term life insurance over permanent life insurance policy is cost. The policy provides a lump sum to the family of the life assured in case of death or critical illness.
ñ A term life insurance policy is essentially a death benefit payable only within a selected time period.
ñ Term life insurance offers you a greater level of flexibility over permanent life insurance.
ñ Term insurance policies provide the advantage of changing the term for a particular policy. For example, if you have a 20 year term policy, you can convert it into 14 or 15 years.
ñ For the death benefit, this policy offer advantage for a particular number of years. At the time of policy purchase, you have to decide the time period. You can buy your policy for 1 year, 5 years, 10 years, 15 years, 20 years, 25 years or 30 years.
Benefits Of Permanent Life Insurance:
ñ The cost of premium will remain same as long as the policy is in force. In permanent life insurance the cost of the premiums paid will never increase.
ñ Permanent life insurance provides long-term goals by offering consumers consistent premiums and guaranteed cash value accumulation.
ñ Policy holders can potentially take a loan out on their policy.
ñ Permanent life insurance policy also provides benefit in terms of Accident Benefit Rider option this benefit will be available for an amount not exceeding the Sum Assured. Mostly this benefit is applicable for Regular polices and not for Single policies.
In permanent life insurance policy, you will get your cash value in hand and can use it at the time of emergency. Term life insurance helps your family to maintain their financial independence, even when you are not around. This policy provides a stated benefit upon the death of the policy owner, provided that the death occurs within a specific time period.
For Permanent life insurance, the payout is assured at the end of the policy, and the policy accrues cash value. Permanent life insurance is used for life-long protection. As long as you pay the premiums, the death benefit will be paid.
Benefits of Term Life Insurance
ñ Term life insurance is the most cost-effective, simple, and appropriate insurance policy. The main advantage of term life insurance over permanent life insurance policy is cost. The policy provides a lump sum to the family of the life assured in case of death or critical illness.
ñ A term life insurance policy is essentially a death benefit payable only within a selected time period.
ñ Term life insurance offers you a greater level of flexibility over permanent life insurance.
ñ Term insurance policies provide the advantage of changing the term for a particular policy. For example, if you have a 20 year term policy, you can convert it into 14 or 15 years.
ñ For the death benefit, this policy offer advantage for a particular number of years. At the time of policy purchase, you have to decide the time period. You can buy your policy for 1 year, 5 years, 10 years, 15 years, 20 years, 25 years or 30 years.
Benefits Of Permanent Life Insurance:
ñ The cost of premium will remain same as long as the policy is in force. In permanent life insurance the cost of the premiums paid will never increase.
ñ Permanent life insurance provides long-term goals by offering consumers consistent premiums and guaranteed cash value accumulation.
ñ Policy holders can potentially take a loan out on their policy.
ñ Permanent life insurance policy also provides benefit in terms of Accident Benefit Rider option this benefit will be available for an amount not exceeding the Sum Assured. Mostly this benefit is applicable for Regular polices and not for Single policies.
In permanent life insurance policy, you will get your cash value in hand and can use it at the time of emergency. Term life insurance helps your family to maintain their financial independence, even when you are not around. This policy provides a stated benefit upon the death of the policy owner, provided that the death occurs within a specific time period.
Posted: Tue Aug 21, 2012 08:50 am Post Subject:
Great post! There are also some hybrid life insurance solutions, like Return of Premium term life and term-life-on-a-UL-chassis that allow policy owners to have a little more flexibility when buying life insurance. For instance, return of premium returns back premiums paid into the policy if you are still living at the end of the term. It's a good way to ensure that money paid into the policy wasn't wasted, for a slight increase (usually up to 30%) in regular term premiums. Term-life-on-UL allows policy owners to use a UL policy as a plain vanilla term life policy, by choosing not to fund the cash value component of the policy, and getting temporary death benefit for a certain number of years. Of course, if they choose to use it as a permanent life policy, they can fund it in a couple of ways. This kind of flexibility allows users to rethink purchase decisions at any point and restructure their life insurance solutions along the way. Always do a term life insurance comparison online to see which type of policy would suit you best.
Pat Cassidy
Disclaimer: I work for [link removed per TOU] and this is my personal opinion.
Posted: Fri Aug 24, 2012 12:23 am Post Subject:
term-life-on-a-UL-chassis
is known as Universal Life insurance. Ain't no other thing.
return of premium . . . a good way to ensure that money paid into the policy wasn't wasted, for a slight increase (usually up to 30%)
Could actually be 100% or more. Haven't seen just a 30% increase in several years.
a UL policy as a plain vanilla term life policy by choosing not to fund the cash value component of the policy, and getting temporary death benefit for a certain number of years.
Wouldn't I just love to meet Pat in a courtroom! This misrepresentation is what gets insurance companies in big trouble. If this is a person's intent, why would they want to pay more for a UL policy to do this than for an actual "plain vanilla" term policy.
If you want to talk about guaranteed universal life policies, that's a different discussion, and it is still not one of "UL as a plain vanilla term life policy". If it were, it would not be called UL.
Pat sounds a lot like one of my students (using the "plain vanilla" dialogue), but he has the information all screwed up.
Always do a term life insurance comparison online
And what you will get is merely a price comparison, which may, in reality, mean absolutely nothing at all. You cannot evaluate one contract vs. another online. Insurance companies generally do not provide that sort of information online.
But Pat works for one of those online quoting engines, and his "personal opinion" is biased, if not misguided.
Posted: Fri Aug 24, 2012 12:52 pm Post Subject:
is known as Universal Life insurance. Ain't no other thing.
Max, from the consumer's perspective, it is identical to term insurance when funded at the guaranteed minimum level. This is what Pat is talking about.
If this is a person's intent, why would they want to pay more for a UL policy to do this than for an actual "plain vanilla" term policy.
They wouldn't pay more for a UL policy, but you are making the assumption that the UL policy is more expensive. Sometimes, the UL policy is the least expensive policy that can be purchased.
Posted: Fri Sep 14, 2012 10:17 pm Post Subject: Small Business Liability Insurance
Anytime someone enters your office there is a risk of a lawsuit. Whether you are a business owner or a professional like a doctor or a dentist, small business liability insurance protects your business from expensive legal damages that are related to doing business at your office.
[Link removed - Admin]
Posted: Thu Sep 20, 2012 10:11 am Post Subject: Life Insurance
It is the most affordable life insurance as it has the lowest premium in the early years. In case of any unfortunate event, investment in term life insurance will cover your family against financial problems.
[Link removed per TOU]
Leading brands in Insurance sector
[Link removed per TOU]
Posted: Thu Sep 20, 2012 10:12 am Post Subject:
Different individuals generate different automobiles and need different kinds of vehicle insurance security. There will surely be individuals who love generating expensive automobiles. Others will prefer something more economical and can last for years.
[Link removed per TOU]
Leading brands in Insurance sector
[Link removed per TOU]
Posted: Tue Sep 25, 2012 08:44 am Post Subject:
The most important kinds of insurance policies are long term life insurance and permanent life insurance. There are various variations within these. A term life insurance policy provides death insurance for a specified period.
Posted: Fri Sep 28, 2012 08:01 am Post Subject: Life Insurance
Term life insurance and permanent life insurance, both have their own advantages and disadvantages. Term insurance does cost cheap but offers benefits for a limited period of time. Permanent insurance offers benefits for the entire life time.
Posted: Fri Sep 28, 2012 01:21 pm Post Subject: New Member
-------------------------------Hi------------------------------------------------,
I am new Member in this Forum , My name is Scott Storick , I am belong to Florida USA...........!
////////______Thanks_____////////////
Add your comment