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heidrek
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 Posted: Tue Oct 20, 2009 1:40 am Post subject: |
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Life insurance prices are all over the map. If you seek 10 quotes from different carriers, you'll get 10 different prices.
All companies seem to have their "sweet spots" in terms of the "ideal client" for that carrier. This, too, is all over the place.
Term vs. Perm? Again, all over the place. You have to look at the individual carriers, their underwriting requirements, what types of policies they issue, and their profitability. It all comes into play.
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InsTeacher
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| Posted: Tue Nov 17, 2009 12:37 am Post subject: |
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So I'm clear -
term = something like a fixed term deposit? Matures at the end of a period of time and gives you a payout while providing life insurance at the same time?
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heidrek
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| Posted: Tue Nov 17, 2009 5:26 am Post subject: |
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| Quote: | | term = something like a fixed term deposit? Matures at the end of a period of time and gives you a payout while providing life insurance at the same time? |
No, term as in pure term insurance. Temporary coverage with nothing paid out at the end of the term. Pure death coverage.
Deposit term is a different contract.
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InsTeacher
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| Posted: Tue Nov 17, 2009 7:04 am Post subject: |
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Hi Teacher, I think it's real tough for us to get a fair measure of an insurer's profitability. It would help if you'd give us a clue.
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Pinkfloydfan
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heidrek
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| Posted: Wed Nov 18, 2009 8:53 am Post subject: |
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Term is temporary. Permanent is permanent. Term insurance insures one for a finite period of time. Permanent insurance insures one until death.
Term insurance insures against a possibility.
Permanent insurance insures against a certainty.
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fkafjru
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| Posted: Fri Nov 20, 2009 5:48 pm Post subject: Best Life Insurance Quotes? |
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Well, the best life insurance quotes may be the ones that give you the coverage you need, from a highly-rated life insurance company, at prices you can afford.
When looking for the best quotes you may want a licensed independent life insurance agent to help you compare plans and rates from multiple highly-rated life insurance carriers.
That way, if you have any questions, you have a professional to help guide you.
Yes, you can compare rates online, but they may not be as accurate as you would like.
Term life insurance is usually less costly because it is temporary life insurance protection for a specific number of years. If you outlive the policy term, your coverage expires.
Term life is pure protection, no cash value inside the policy. That's a main reason it costs less than permanent life insurance, as well as the fact that many people either outlive the term, or they discontinue their term life insurance policy.
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Hadley
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| Posted: Sat Nov 21, 2009 3:03 am Post subject: |
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First off, this is a great comment:
| Quote: | Term is temporary. Permanent is permanent. Term insurance insures one for a finite period of time. Permanent insurance insures one until death.
Term insurance insures against a possibility.
Permanent insurance insures against a certainty. |
Term insurance is "rental" life insurance. It's subject to rate increases as you age and renew, you get nothing out out of it unless you die, and there's no cash value in a standard term policy. The bottom line? You die during the policy period, it pays. Die after the policy ends, the beneficiary gets squat. Term contracts are pure insurance- they provide a death benefit and that's it. They're a lot cheaper than permanent policies which have a whole different set of features and benefits that I'm not gonna get into here.
Listen to the words...anything you do for a "term" is only for a finite period of time, for example, a "school term" is the period of time you go to school. Term policies may or may not renew depending on the policy.
An example of permanent insurance is "Whole Life" insurance. Again, listen to the words. "Whole Life" is insurance that insures a person for their whole life. Permanent contracts don't renew- you buy them "permanently."That's why I really like the comment that was quoted above by fkafjru. It's perfect.
As far as:
| Quote: | | Hi Teacher, I think it's real tough for us to get a fair measure of an insurer's profitability. It would help if you'd give us a clue. |
Almost every insurer is required to report to each state in which it operates their "numbers" for the year. You can get a true measure of an insurer's profitability by muddling through the state insurance websites and finding the info. It's usually pretty buried, and you may have to do a lot of searching to find the statistics, but they are there somewhere. Good hunting!
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InsTeacher
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| Posted: Sun Nov 22, 2009 9:41 pm Post subject: |
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sorry don't know how to "quote" so:
"....Permanent contracts don't renew- you buy them "permanently."
hang on, so there's a single premium paid at inception and thats it? you're covered until you die? guantanteed right of renewal with adjusted premiums annually I could understand, but one lump sum and that's it? must be pretty tough to effectively underwrite.
What happen if you want to cancel the policy after a couple of years, how is return of premium calculated? average life expectancy figures?
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heidrek
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| Posted: Tue Nov 24, 2009 5:23 am Post subject: |
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| Quote: | | hang on, so there's a single premium paid at inception and thats it? you're covered until you die? |
No. Term insurance is bought for a specific period of time, hence the use of the word "term." For example, you can buy term insurance for varying lengths of time (e.g. "1-yr. term," "5-yr. term," "10-yr. term,etc.). At the end of that period of time, the policy may allow renewal for another 1, 5 or 10 year term without evidence of renewability. This differs from the idea of paying premium as asked in your question.
Permanent policies are issued and cover a person to a specific age. For example, a person who bought a whole life policy at age 25 doesn't renew the policy like a term policy. The policy is issued and the coverage is in force until at least age 100 of the insured. If a person age 41 bought the same policy, it would be more expensive (as the insured is older) but would still last until age 100. Same policy, different lengths of time the insured would be covered for. There are different ways to pay premium on a whole life policy; single-premium, limited payments options, and continuous-pay (monthly, etc.) until the age shown in the policy for maturity or the insured's death.
So Heidrek, I hope this helps...
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InsTeacher
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| Posted: Tue Nov 24, 2009 9:38 pm Post subject: |
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yes it does, but it raises another question:
lets say I'm 30. whats the difference between getting a term life policy for say 70 years and a whole life "perm" policy?
they both provide cover until I'm 100? I take it the main difference would be cost? Is there a max term you can take out "term" cover for?
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heidrek
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| Posted: Wed Nov 25, 2009 3:54 am Post subject: |
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| Quote: | | No. Term insurance is bought for a specific period of time, hence the use of the word "term." For example, you can buy term insurance for varying lengths of time (e.g. "1-yr. term," "5-yr. term," "10-yr. term,etc.). At the end of that period of time, the policy may allow renewal for another 1, 5 or 10 year term without evidence of renewability. This differs from the idea of paying premium as asked in your question. |
Actually, 5, 10, 15,20, 25, and 30 year term policies are very rarely 5, 10, 15, 20, 25 and 30 year term policies. In reality, most of them are simply annually renewable term insurance, but the premium is level for the first 5, 10, 15, 20, 25, or 30 years. For example, with what most people call "10 year term", the price will stay level for the first 10 years and then start increasing on an annual basis. The policies usually last until somewhere between age 85-100. Of course, they become too expensive to keep.
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