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 Posted: Wed Jan 16, 2008 2:52 pm Post subject: compare life insurance - term life vs. whole life |
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| Can anyone explain what term life is and whole life. I wanna compare life insurance policies and know how to choose the best out of them. What is your opinion of either of them.Thanks |
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hummingbird
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| Posted: Wed Jan 16, 2008 4:45 pm Post subject: |
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| I believe that term life is exactly that for a term (of time) and whole life is for your whole life. I am sure that someone with a more in depth answer will come a long soon and elaborate more to help you compare life insurance. Hope this helps. |
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goodnatured
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| Posted: Thu Jan 17, 2008 5:26 am Post subject: |
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As their names suggest ……….'term life' insurance offers coverage for a specific period of time and the coverage lasts life long of the inured for the 'whole life plan'. The premium and coverage level may or may not remain same for the entire tenure of a whole life plan. But the whole life plan also accumulates a cash value, which the policy holder or the beneficiary can receive at the expiration of the policy. This is the most important thing that you should remember when you're out to compare life insurance.
For a term life plan, the tenure of the policy is fixed, 15 yrs, 20 yrs or 30 yrs….. and one can choose a term that will suit his/her needs. During this tenure the premium and the coverage level remain unaltered. If the insured dies within the set term, the policy the benefits/ death benefits will get disbursed towards the named beneficiary. Often people with shorter needs opt for the term life plans. And as the insurer promises to cover for a specific time period, the benefits terminates with the term.
Hope that clarifies…..
Regards,
Juanita |
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Juanita
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| Posted: Thu Jan 17, 2008 6:10 am Post subject: |
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IMO when you'd compare life insurance a lot of it depends upon your age and financial needs. People are known to take out a term policy that matches with their mortgage loan. This keeps them covered for the entire period of their loan. The idea behind is if the mortgagee dies within this time period the term policy will take care of the unpaid amount of the loan.
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Crossbreed07
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| Posted: Thu Jan 17, 2008 1:35 pm Post subject: Answer |
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| Term life is superior to whole, universal or variable because its strictly life insurance. It covers you for a specific amount of time or term. The other types cover you till you die. However they are riddled with ridiculous fees. Go with Term and also look into term with return of premium. Which like the name implies is a full refund of all the premiums you pay if you make it to the end of the policy term. That's exactly what I get whenever I compare life insurance. |
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PreferredInsuranceServi
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| Posted: Thu Jan 17, 2008 2:17 pm Post subject: |
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quote (But the whole life plan also accumulates a cash value, which the policy holder or the beneficiary can receive at the expiration of the policy. )
If I bought a whole life policy ,how would I collect a cash value at the expiration of that policy?Would not I be dead? Would it not expire only if I were dead? I thought you said a term policy was for a term of time but whole life is for ,whole life). I'm confused here. |
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hummingbird
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| Posted: Thu Jan 17, 2008 2:22 pm Post subject: |
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That is a real good idea about taking out the insurance in the amount of your mortgage.I wonder if it is cheaper than taking out mortgage insurance. I should look into that.
What prefered said above ,do you mean if I took out term ,that at the end of that term if I were still living ,I would get all I paid in returned to me?Or what else would be an option at this point to keep some life coverage. |
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hummingbird
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| Posted: Thu Jan 17, 2008 4:27 pm Post subject: TERM AND PERM |
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Hi,
When you'd compare life insurance you'd certainly need to remember the following-
Term Is for a Time
Term insurance is the most basic type of insurance. You can buy protection for a certain amount of time (or term) such as 5, 10, 15, 20 or 30 years.* If you die before the term is over, your beneficiary gets the death benefit stated in your policy. If you live beyond the term, your beneficiaries get no payment. This type of insurance is usually the least expensive to buy.
PERM LIFE Is for Life
One main difference between term and permanent life insurance is that permanent doesn't expire. As long as premiums are being paid, it stays with you permanently.
Cash Value
The other big difference is that with permanent life insurance, your premiums are invested to produce returns. This gives your policy a cash value, which usually accumulates at a guaranteed minimum interest and is available to help fund retirement, emergencies and more. |
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CHUCK007
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| Posted: Thu Jan 17, 2008 4:29 pm Post subject: WHOLE LIFE WWW.ALLSTATE247.COM HAS ALOT OF INFO ON INSURANCE |
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Whole Life
Also known as straight life, whole life is the simplest form of permanent life insurance. You'll pay the same amount of premium for the rest of your life. (Start young and the less expensive the premiums will be.) Your cash value will accumulate based on a guaranteed rate. As long as your policy is current, you can borrow against the cash value at the current policy loan interest rate. |
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CHUCK007
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| Posted: Thu Jan 17, 2008 4:37 pm Post subject: |
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| Straight life?Whole life? term life?How many types of life insurance are there? No wonder i'd be confused if I try to compare life insurance like that. And to think i once was interested in getting life insurance we just thought we grabbed a life insurance policy .We never knew they were so complicated. |
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hummingbird
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| Posted: Thu Jan 17, 2008 4:42 pm Post subject: LIFE INS |
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THERE IS MANY POLICIES OUT THERE AND THE BEST THING TO DO IS SEAT DOWN WITH A LIFE AGENT THAT HAS BEEN AROUND A LONG TIME AND THEY WILL DO A NEEDS RECORD FOR YOU, COMPARE LIFE INSURANCE POLICIES AND POINT OUT THE RIGHT TYPE OF POLICY.
I LIKE GETTING TERM AND THEN INVESTING THE REST INTO AN IRA OR 401K PLAN |
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CHUCK007
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| Posted: Thu Jan 17, 2008 5:04 pm Post subject: |
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| The rest of what? I tend to think of insurance agents as wanting only the commission on a big policy...lol sorry don't mean to offend. |
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hummingbird
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| Posted: Thu Jan 17, 2008 5:07 pm Post subject: |
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Preferred Insurance Servi, are you sure you wouldn't like the opportunity to revise this statement?
| Quote: | | Term life is superior to whole, universal or variable because its strictly life insurance. |
Wouldn't you rather say something like, "Whole, Universal, and term life are three different products and the best one for you is the one that best fits your particular needs."
Then, when you came back and said,
| Quote: | | It covers you for a specific amount of time or term. The other types cover you till you die. |
I thought I was going to lose it. Yes, ladies and gentlemen of the jury; term insurance provides coverage for a specified amount of time. The other types cover you until you die. Therefore, if you want life insurance coverage until you die - whenever that might be - you might consider a permanent [versus term] type of plan. However, if you only want coverage for a specified amount of time - and not necessarily have the coverage when your heart stops beating, term seems like the way to go.
| Quote: | | However they are riddled with ridiculous fees. |
In your professional opinion, which fees (specifically) are the most ridiculous? What if we were to compare the fee structures between, let's say, an AIG term policy and the very same plan with a company life Primerica? Fortunately, I already know the answer to this question because I assisted in the prosecution of an agent from Illinois last year.
By the way, does your state's insurance code mention anything about defamation? Understand that in most states, this is a violation and is considered highly unethical. Because you are in a public forum, I thought I would bring these points to your attention and help you compare life insurance.
If you have any questions, feel free to go to my website.
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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 Jan 17, 2008 5:32 pm Post subject: LIFE AGENTS |
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| There is alot of life agents just looking to make money off the sale and you must watch out for that . Bottom line is if you have no life insurance then you need to get some and as far as term vs perm I myself have a term policy and the extra money the perm policy was gona cost me I put into an IRA i HAVE SEEN MANY AGENTS TRY TO SELL YOU A TON OF PERM INSURANCE WHEN IT WASN'T NEEDED |
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CHUCK007
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| Posted: Thu Jan 17, 2008 6:23 pm Post subject: |
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Hey Chuck007, good post.
You are absolutely right in that agents who are new, and often inexperienced, with things like a code of ethics, professionalism, repeat business, development of an agency, so-forth and so-on, often get caught up in the "hype" of making the sale.
These people go to work every day, check in with their branch manager, and either have their butts kicked for not submitting enough business or thier legs humped because they are on track to make conference. If you just can't get excited about being chewed out by an agency manager who, because he couldn't sell used cars, became a life insurance salesman I fully understand.
My point is that inexperienced agents often make pressure-based sales and that's where problems start. Agents misrepresent the terms and conditions of policies, lie about coverage and premiums, sell too much insurance and don't conduct a proper needs analysis. Thus, they'd never let you compare life insurance in a proper way. And they do it because they don't want to get yelled at when they go into the office.
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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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