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 Posted: Thu Oct 30, 2008 11:28 am Post subject: insurance |
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| Hey, BEATUP.......30 year level term? Please forgive my 'ignorance', however, that ALMOST sounds like that IS Life Insurance. What's the difference between the 30 Year and Life( term and whole.) I'm not too familiar with all of the 'Life Insurances' out there. |
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sdchargersfan
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| Posted: Thu Oct 30, 2008 2:26 pm Post subject: |
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30 year term (also sold in 5, 10, 15, 20 year increments) is pretty much how it sounds. It's good for 30 years. If you die during that 30 years, your beneficiary gets the death benefit. If you live past the 30 years, you and your beneficiary get zippo.
The advantage, as mentioned above is that the premiums are less. However, there are two disadvantages.
1. If you want insurance (again) after the policy runs out, you have to buy a new policy - based on your new age and health. The rates will be higher because you are older and if there is something medically that popped up during the 30 years, you may be uninsurable and can't get anything.
2. The face value of the policy is all your beneficiary will get. There is nothing inside a term policy that will allow you to build cash value.
With a UL, VUL those two disadvantages go away.
1. The yearly premium, where more than with a term policy, will be what you pay - forever. The premium will never adjust because you are older. What you start paying, is what you will pay until you die. If something medically happens 20 years into the policy that now makes you uninsurable, your current policy will stay in place. It simply can't be terminated (unless you stop payments).
2. There is an ability to have "cash value" in the policy based on your investment choices. If your 200K VUL has done well in the market, you could have an extra, for example 50K in your policy. When you pass, your beneficiary will get the 200K and the 50K. However, a nice think about the cash value is that it is available to you before you pass. You can "borrow" against your policy - buy a boat, vacation house, pay for schooling, etc. You will have to pay it back but if you pass before it is paid back, the balance owed is simply taken off the death benefit.
Even using today's market crisis as an example, suppose your cash value drops to nada...no worries. Your death benefit is still 200K. It will alway be 200K (unless you borrowed and didn't pay enough back).
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LifeIsGood
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| Posted: Thu Oct 30, 2008 6:53 pm Post subject: inasurance |
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| There sure is a difference between the two- Life and Term. I would like one that builds Cash Value. I sure can't predict what's gonna happen 20 years from now. |
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sdchargersfan
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| Posted: Thu Oct 30, 2008 7:11 pm Post subject: |
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Smart woman...Term has an advantage if the policy is taken out on a child - then once he/she turns 18 (or so), it can easily be converted to a VUL/UL - with low premiums because the insured is still wayyyyyy young.
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LifeIsGood
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| Posted: Thu Oct 30, 2008 7:56 pm Post subject: |
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The thirty year term will give me risk protection while I am paying off my mortage and saving for retirement. When you look at the differences in premiums the WL and UL look like a poor investment to me. I would rather put the difference in premiums towards something that would build interes much more quickly.
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beatuplunchbox
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| Posted: Thu Oct 30, 2008 8:09 pm Post subject: |
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How does a 30 year term build interest?
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Life moves pretty fast. If you don't stop and look around once in a while, you could miss it. - Ferris Bueller |
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LifeIsGood
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| Posted: Thu Oct 30, 2008 10:48 pm Post subject: |
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Actually, beatuplunchbox is absolutely correct. A 30 year term policy is often the way to go. Especially if you don't plan to live very long or be wealthy enough to have estate tax exposure.
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Please feel free to go to my website at www.markcolbert.com or, if you have a specific question, you can email me directly. I hope I can answer any questions you might have. If not, I can certainly find an answer right away. |
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InsInvestigator
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| Posted: Thu Oct 30, 2008 11:17 pm Post subject: |
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| Quote: | | Especially if you don't plan to live very long or be wealthy enough to have estate tax exposure. |
Now there is a goal!!!!
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Life moves pretty fast. If you don't stop and look around once in a while, you could miss it. - Ferris Bueller |
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LifeIsGood
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| Posted: Sun Nov 02, 2008 4:50 am Post subject: |
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Hey Wendy,
If you ever want to know more about the different types of policies, you can always go to the life insurance guide section. I know the guy who put that together and he covers some pretty good points.
Mark
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Please feel free to go to my website at www.markcolbert.com or, if you have a specific question, you can email me directly. I hope I can answer any questions you might have. If not, I can certainly find an answer right away. |
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InsInvestigator
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| Posted: Wed Nov 26, 2008 9:51 pm Post subject: |
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beatuplunchbox,
I agree that sometime is it better to buy a term and invest the difference (sometimes its better sometimes its not....depends on the number). The problem is WILL your client actually do this. For this plan to work you actually HAVE to invest the difference. Most people that say that will never invest the difference. |
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Marpol
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