Help Choosing The Best Life Insurance Company

by Craig Thornburrow

As you age, you may start thinking about your financial future and about life insurance and the life insurance company you will need. This type of insurance will protect your family from having to pay expenses including funeral and burial costs, outstanding bills you may have, and medical bills that may have accrued if you are sick and had to stay in the hospital.

These costs can be high depending on your financial situation and could be a huge burden on your family. Finding the best life insurance company so you can buy a policy that will put your mind at ease and will allow you to live the rest of your life without having to worry about the future.

Life insurance policies come in many different forms and are available from different companies. You will be able to find out more information about a life insurance company by researching them online and by calling a representative from the company. You should ask important questions about premiums, coverage, and how to qualify for a policy. Depending on your age, you may have to pass a medical exam in order to take out a policy. The amount of your premium will also depend on the amount of coverage you will need. Some policies will only pay for medical bills and funeral expenses, while other bills will pay for much more.

When looking for a policy, you should also ask how long the policy will be in effect. After a certain age, the policy will no longer cover as much as it once did. If your employer offers life insurance, you should take it. This will cost less each month and you may be able to take the policy with you when you retire. The benefits may not be as extensive as if you went through a private insurer, but you will be able to help your family pay for certain costs in the event of your death. If you travel often for business, then you should consider getting the best life insurance.

Applying for a policy will not take too much of your time and the policy will go into affect after you sign the paperwork. As long as you maintain the policy by making monthly payments, you will be covered in case of an accident or illness. While no one wants to think about their own death, it is important to consider the lives of others you will leave behind.

If you have children or if you have other relatives that will be responsible for your bills after your death, you should be able to pay for most of it through a life insurance policy. The best life insurance company you choose will be able to explain pay outs and other information when you sign the paperwork.


About the Author
Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on Life Insurance and Term Life Insurance at http://www.bestdeallifeinsurance.com

How to profit from term life insurance

Term life insurance is a type of temporary life insurance. The purpose of term life insurance is to reduce financial risk for a fixed period usually between one to twenty years. One example will make things clear. Sarah buys a life insurance policy to insure her husband John's life.

She pays 20$ premium per month to the life insurance company. The period of life insurance is for 20 years. So if John dies within 20 years, Sarah will get 4800 dollars. However if John doesn't die within 20 years Sarah will get some money after 20 years which will be much less compared to 4800 dollars.
However if she buys a term life insurance of 4800 dollars for 20 years, she may have to pay premium of less than 20 $, say 10 $ a month. If John dies within 20 years Sarah will get the death benefit of 4800 dollars, however if John doesn't die within 20 years, Sarah will get no cash value at the end of 20 years. However since she has paid only 2400 $ as premiums, her 2400$ are saved as compared to the permanent life insurance policy which she can invest and make profit. In the US market the 2400$ if invested wisely would have yielded much more than 4800$ to Sarah in 20 years.

The idea behind term life insurance is to buy a life insurance policy for a period usually one year. The premium (the amount you pay to the life insurance company) is much less compared to a permanent life insurance premium. The insurance can be renewed after the expiry of the life insurance term, but the premium keeps increasing as the insured ages. The higher the age of the insured, the higher is the premium.

Term life insurance is the cheapest life insurance available on coverage to premium dollar basis. The death benefit is non-taxable in the United States and the premium is also deductible from the income to save income tax.

ABOUT THE AUTHOR
Find more about Health Insurance on http://www.LeanderNet.com/Health_insurance/Health_insurance.php . More useful content on LeanderNet - http://www.LeanderNet.com

Whole Life Insurance: 4 Questions and Answers

by Gert Hough

A life insurance policy is important if you have someone depending on you for financial support. You may be interested in whole life insurance. Well, here are 4 questions answered about whole life insurance.

1. What is whole life insurance?

It is an insurance policy that offers life coverage and an investment opportunity to you. The investment may be in bonds or stocks. The premium you pay is divided between the insurance and the investment.

Life insurance is designed to protect your family and other people who may depend on you for financial support. Having the right insurance protection can assure anyone of long-term financial freedom and peace.

The policy stays active untill you either cancel it, stop paying the premiums or die. In the event of your death, the policy amount is paid out to the beneficiary you named. If you choose to cancel the policy, you can receive the current cash value of the investment. You can contact a life insurance broker for more information.

2. What are the possible advantages of whole life insurance?

A part of the money you pay into a whole life insurance policy is invested and accumulates a cash value.
You may borrow money against the cash value at the current policy loan interest rate. Just remember that this may reduce the overall value of the policy.
A whole life insurance policy may earn dividends if the actual insurance cost turns out to be less than the calculated premium.
You can use a whole life policy in your estate planning by setting up an insurance trust that may pay your estate taxes from the returns of the policy.
A part of the money you pay for your premium is invested by the insurance company and accumulates a cash value. This could be used to pay off the entire policy.
3. How good is the return rate on a whole life policy's investment?

Not very good compared to other investments. Remember that whole life insurance primarily offers life coverage. The cash value is just an added bonus. For more information, you should contact your life insurance broker.

Before you contact your life insurance broker, I suggest you collect different life insurance quotes which you can get for free from online insurance companies.

The more quotes you get the better understanding you get about what is available and at which monthly rate. You can search for such companies at http://freewholetermlifeinsurancequotesonline.com.

If you want to find the best life insurance company to handle your personal life insurance, you have to be prepared when you go to your local life insurance broker.

4. What about medical exams for life insurance?

To purchase life insurance you may be required to undergo a medical exam. Life insurance companies need to administer medical exams in order to determine how much premium to charge a potential policyholder.

When reviewing risk, insurance companies automatically divide people into two groups: smokers and nonsmokers. Heart disease, diabetes, rheumatoid arthritis, multiple sclerosis, hepatitis C, a past stroke or a recent history of certain types of cancers may also place you in this risk category.

If you engage in activities that the insurance companies believe are risky, it could increase your premiums. An insurance company life insurance broker will be able to inform you about what behaviors their company deems risky.

That was 4 questions answered about whole life insurance.

Getting life insurance quotes online is easier than you might think. All you have to do is to submit your name and email to receive free online applications for life insurance.

About the Author
Gert Hough writes reviews / articles about life insurance, healthy living and some great gadgets that improves the average persons online experience.

Affordable Online Life Insurance Policies

by Sandra Stammberger

Death is an ordinary subject matter in any discussion. Let's face it, every individual will have to deal with it when the time comes. Your family is very important but what will happen to them just in case you die unexpectedly?

This is a very important concern for elderly family members and if you don't want your family to suffer in the event of your death, the best solution is to purchase a life insurance policy.

When you say life insurance, a lot of people will refuse to buy it because they think that it is rather costly. But you see if you're diligent enough to do your search online, you can find an affordable policy. How can you do your search online?

First things first, sign up for a comparison website that features insurance policies. If you log on to the websites, you can easily find an affordable policy quote from A-rated companies.

There are licensed professionals online that can help you in choosing the best insurance policy that will suit your family's needs. Insurance websites will require you to fill out a form that will include information regarding your job, desired coverage, hobbies, medical and health histories.

By providing these pieces of information, the insurance companies can match your insurance needs to the accurate quotes. It is therefore very important to complete such form accurately, honestly, and completely.

You can also check out these tips to help you in your search for affordable insurance policies. You can ask the insurance company if you can save by paying an annual premium rather than paying it monthly. Some people get several life insurance policies because they are not satisfied with only one. Rather than doing this, why not get the life insurance that is just enough to meet your insurance needs. You should also consider things like your SS benefits and your current job. 'No load' policies are more affordable and you can get this through whole life policies.

When getting a life insurance policy, your health is very important. So if you think that your health is not at its best, try to improve it. You can start an exercise program, stop smoking, lose weight if you're too fat, and anything else that can help you improve your health status.

To help you compare the different insurance policies offered by various insurance providers, you can get quotes from these companies. Try to compare the quotes and see if they meet the insurance needs of your family. Once you've chosen the best policy, you can contact the provider. You can also do that online because insurance providers have their own websites on the internet.

Choosing the insurance provider is also very important. As you can see, the internet is full of scammers. Be sure to choose an insurance provider that is already established and has been in the market for many years already. You can also check testimonials of their clients to see if they are satisfied with the company's benefits.

So if you can't find a local insurance company that meets your needs, try to make a search online. There are a lot of opportunities waiting there for you. It is best to prepare at an early age because you can't tell when the time of your death will come.

About the Author
Sandra Stammberger owns and operates http://www.lifeinsuranceproviders.net/affordablelifeinsurance.html - Get An Affordable Life Insurance

Guaranteed Issue Term Life Insurance

by Sharon Taylor

Have you ever been turned down for term life insurance coverage? Guaranteed issue term life insurance was created for those who have trouble obtaining basic term life insurance coverage. Guaranteed issue term life insurance is also known as a "simplified issue policy." You are automatically accepted for coverage without being required to submit to a medical exam. In exchange for guaranteed coverage, you will be charged a higher term life insurance premium. The higher premiums are a fair trade for insurance carriers taking a larger risk covering people without knowing their full medical histories. Purchasing a guaranteed issue term life insurance policy is ideal for people who were born with or have developed chronic medical problems.

The Inner Workings of Guaranteed Coverage

Guaranteed term life insurance coverage works a little differently than buying a straight term life insurance policy. While basic policies allow you to choose the period for which you would like to be covered, guaranteed policies are issued at five and 20 year periods.

If you initially buy the five year term, you may renew every five years after that until the age of 80. At age 80 your policy automatically becomes exchangeable for a permanent life insurance policy. You are still automatically covered upon transfer to your new policy and still are not be required to undergo a medical exam. Your premiums are also guaranteed to remain level throughout the duration of your policy unless term life insurance rates increase across the board for everyone in your age range and state. Renewable term life insurance premiums are based on your current age. Get instant term life insurance rates by visiting http://www.equote.com/li/termlifeinsurance-quote.html.

If you choose to purchase the 20 year term, your monthly rates will stay the same for the full term of your policy regardless of any rate increases. Upon completion of the first 20 years you have the option of purchasing an additional 20 year guaranteed issue term life policy. Again, no medical exam is required nor will you be subjected to any health questionnaires. Some insurance carriers offer the option to convert a 20 year term policy into permanent life insurance coverage after the first 20 year period is over.

Note: the face values you may purchase for a guaranteed term life insurance policy are limited. The coverage amounts start at $5,000.00 and are sold in increments of additional $5,000.00 up to a maximum of $25,000.00. The face values do not decrease with age or with a decline in health status. To learn more about term life insurance go to http://www.equote.com/li/termlifeinsurance.html.

Other Benefits to Owning a Guaranteed Issue Term Life Insurance:

1. It cannot be canceled in case you develop a terminal illness.

2.You can activate an accelerated death benefit in case of terminal illness; giving you needed cash to offset medical bills or special needs assistance.

3.Your coverage is guaranteed to stay active for the whole term of your coverage. If you purchased the 20 year term, coverage would end if your benefits were accelerated.

4.You have the standard 30-day money back guarantee on the policy. If you decide that the guaranteed issue term life insurance policy is not for you, you may request a refund of premiums paid to date -- no questions asked.

About the Author
Sharon Taylor writes informative articles for eQUOTE Life Insurance, a premier Internet resource for term life insurance, no-obligation quotes, and other helpful insurance resource information.

Advantages of whole life insurance

Whole life insurance also known as “permanent” or “straight” life insurance is one of the most applied forms of insurance. This life insurance policy covers one’s entire life. This is much in demand because of its ability to provide financial protection and accrue cash value and pay dividends to the insured. In other terms, you can say it as an investment, that you make to secure your future build up finance that helps you in your indigence.

Taking a whole life insurance policy leads to a number of benefits and advantages. Few of them are listed below.

1. The first advantage is The Death Benefit.

The whole life insurance policy guarantees you the death benefit that never decreases. Moreover no federal income taxes are charged upon death. And if you desire, death benefit can be taken as a monthly income instead of a lump sum.

2. Consistency of premium level.

Unlike term life insurance’s premiums, which increase at the time of renewal, the premium you pay in whole life insurance remains consistent. There’s no increase. However, use of dividends can minimize the premiums that you pay and contracted for.

3. “Cash value” is another beneficial feature of whole life insurance.

Unlike other life insurance policies, whole life insurance policy accumulates the useable cash reserves. This increase as one pays premiums and also accumulates tax deferred. And if you decide to surrender the policy, you receive your cash values.

4. Participation in whole life insurance policy earns you the dividends.

You are eligible to earn dividends if you own a participating whole life insurance policy. You receive this dividends in cash, which you can further use to either purchase a paid up additions, to minimize premiums or you can keep it within the policy to generate interest.

These advantages of whole life insurance policy are really worthwhile. If you are not confident you should consult an expert before taking up any policy.
Source: Free Articles from ArticlesFactory.com


ABOUT THE AUTHOR
We offer the best life insurance information online source. Check it out on the Instant issue life insurance source. All about life insurance on LeanderNet - http://www.leandernet.com

Life Insurance: Sooner The Better

by Allan Elvin

No one can deny the fact that life has become extremely uncertain these days. The statistics also reveal this gory truth. There is a huge upsurge in road accidents in the UK in the last ten years. What is even more depressing is the fact that most of these accidents proved to be fatal. This is expected. Life today is lived at a furious pace. Everyone is in a hurry to reach his destination. It is this urgency to reach the destination at the earliest that makes people flaunt traffic signal with disastrous consequences.

Such fatalities are worse in best of conditions. Imagine then the plight of families whose only family member has died in a road accident. Apart from the obvious trauma that a family faces on the sudden demise of one of its members, it also faces the financial problem for the only earning member of the family has expired. It is in such hours of extreme calamity that life insurance proves its relevance and ensures that family members don't have to suffer on financial grounds.

However, to gain maximum from life insurance, one has to make sure of certain points. First of all, one should ensure that the policy comes to life as soon as it is signed. Secondly, one should also give a very careful reading to the agreement and get any wrong information fixed then and there. One should also take extreme precaution of not furnishing any wrong information to the insurance company, for it might lead to the cancellation of the policy.

If the above mentioned precautions are taken and a thorough attention is paid while opting for life insurance, then there is no reason why one's decision of opting for Life Insurance would not prove to be a worthy decision. If approached properly, then it can prove to be one's best bet against calamity as serious as the sudden demise of the only earning member of the family.

About the Author
Allan Elvin is an MBA in Finance and has a rich experience of writing on topics related to finance. He professes special interest and expertise in Life Insurance and in guiding you on its various details.

Life Insurance Explained

by Paton Jackson

Life insurance is a type of insurance wherein the insured pays a premium for a period (often lifetime) and the life insurance company provides insurance coverage against the risk of death...

Life insurance is a type of insurance wherein the insured pays a premium for a period (often lifetime) and the life insurance company provides insurance coverage against the risk of death. There are many types of life insurances or assurance (in the UK) available today.

Basics: There are 4 parties in any life insurance policy. The policyholder is the one who is buying the policy, the insured is the one against whose death the policy is made, the insurer that is the insurance company and finally the beneficiary is the person who will get the proceedings of the life insurance policy. It is mandatory that the policyholder should have a legitimate reason for insuring a person’s life.

Types of Life Insurances:

1. Temporary Life insurance. This policy is also called term life insurance that has coverage for a fixed period of time. The policyholder needs to pay a premium for a fixed period of time for which the insurance company provides insurance coverage. This type of policy does not accumulate cash value.

2. Permanent Life Insurance. This type of policy provides coverage till the policy matures. A policy is said to mature when the person reaches a fixed age or dies. The policyholder needs to pay premium for the entire period. This type of policy accumulates a cash value. The policyholder can withdraw or borrow the money or surrender the policy to receive surrender value. There are 3 types of permanent life insurances.

2.1 Whole life insurance. This has a level premium and corresponding cash value. Upon death of the insured, the beneficiary receives the death benefit only and not the cash value. The policy owner can borrow loans on the cash value.

2.2 Universal life insurance. This has a flexible premium and gives higher internal rate of return. The policy has a cash account depending upon the premium. The surrender value equals the cash account balance.

2.3 Variable Universal life insurance. This is similar to universal life insurance with cash account. However the money is invested by the insurance company in mutual funds for a greater return. Hence there is higher probability of increase of cash account but the risk of reduction in cash account is also present.

ABOUT THE AUTHOR
We have made a comprehensive research on the subject of term life insurance . Find the results only on the variable universal life insurance guide . All about life insurance on http://www.life-insurance-rates.info

How to Obtain Term Life Insurance for Life

by Sharon Taylor


With all of our current medical technology and change toward healthier lifestyles, surviving until your golden years is more common. As you have worked a substantial part of your life building your family's fortune, it is a good idea to put together an estate for yourself. Estates ensure that the distribution of your assets are properly handled and allocated according to your wishes. Whether your estate is of modest worth or whether it is in the millions, it is always a wise thing to consider putting an estate plan in place. Part of your estate planning should include a term life insurance policy.

While most term life insurance premiums are based on age, companies do sell what is called term life insurance to 100. Typically, you purchase this policy between the ages of 71-80. The premiums for term life insurance to 100 remain constant from the purchase date until you reach the age of 100. The premiums stop at age 100 but your coverage continues until your death, even if you live to be 125! Term life to 100 basically covers you for life.



Why Buy Term Life Insurance to 100?

Usually, people who reach age 70 have outlived the use of a basic term life insurance policy. If you have children, they are old enough to take care of themselves financially and your spouse would presumably have no need for the death benefit as your financial wealth has already been built.

Truly, then, buying term life insurance to 100 at age 70 would be solely to gift your family even further by making sure that any inheritance you leave to your relatives remains intact. The death benefit allots extra monies to help offset any taxes your heirs would have to pay on their inheritance.

Additionally, death benefits for term life insurance to 100 are paid tax-free. You will not only ensure that capital gains taxes are taken care of but also your funeral expenses and any miscellaneous fees associated with the estate and your death.

Last, should you outlive all of your heirs; term life insurance to 100 is also perfect for leaving a bequest to your favorite charity. You may purchase face value amounts of $10,000.00 to $1,500,000.00. If you choose to donate your death benefit to a charity, make sure to visit the charity to fill out all the appropriate forms.

As always, it is best to seek the advice of a reputable financial advisor to help you choose the best term life insurance company as well as type of term life insurance to 100 policy to suit your needs. Buying coverage for life will allow you the flexibility to gift your heirs or charities in many different ways.


About the Author
Sharon Taylor writes life insurance articles for eQUOTE Life Insurance, offering low rates, no-obligation quotes, and term life insurance information. Providing financial security for American families online since 1999.

Common Questions About Term Life Insurance

by Chris Johns

What is Term Life Insurance?

When you buy a term life insurance policy you are covered for a set amount of time according to the terms of the policy. Once that set time passes, the policy terminates whether or not a claim has been made. A term life insurance policy pays out if you die or, where available, you are diagnosed with a terminal illness whilst the policy is in effect.

Can I get a joint Term Life Insurance policy?

Yes, you can. Your policy can cover you and your spouse, for example. However, a joint policy terminates when a claim is made just like a single policy. If your spouse dies, the policy terminates and you are no longer covered. This could be a disadvantage if you still have financial dependants and the cost of life cover may have increased because you are older.

Do I get money back when the policy terminates?

No. Unlike some Whole of Life policies, a term life insurance does not build cash value, so you will not receive any money back when the policy terminates, and you cannot draw on the policy while it is in force.

What are the advantages of term life insurance?

The main advantage of term life insurance is that it is typically much less expensive than whole life insurance. This is because a term life insurance can (and usually does) terminate without a pay-out occurring, whereas with a whole life insurance policy, a pay-out will always occur as long as the policy is retained, even though it may be several years or even decades before it happens.

Term life insurance is a good option if you need to insure against a specific situation that you know will end after a certain time. For example, a mortgage or if you have children and you want to provide protection until they are adults. It's also a good option for young couples who don't have children but plan to in the future.

What is Decreasing Term Life Insurance? Why would I want it?

Decreasing term life insurance reduces the amount you are covered for over the life of the policy. This is a good option for people with repayment mortgages who want to leave money for their dependants to pay off the mortgage if they die or are diagnosed with a terminal illness. The value of the policy (and the size of the pay-out) reduces in line with the size of the mortgage balance owing. Decreasing term life insurance is typically less expensive than conventional term life insurance.

How can I save money on Term Life Insurance?

Getting several different term life insurance quotes is the easiest way to save money. Be sure to compare policies carefully, especially if you want the policy to cover terminal or critical illness as well as death. Check the illnesses that are covered and note that, for example, not all types of cancers are covered by a typical critical illness insurance policy. If you are in any doubt, seek help from an independent adviser or broker.

As with all types of life insurance policies, you'll pay a lower premium if you're a non-smoker and are in good physical health. You may also be able to save money if you pay your premiums annually rather than monthly or quarterly.

How do I make a Term Life Insurance claim?

Making a claim is a fairly simple process, as long as you've taken care to be accurate and truthful when applying for the policy. In most cases simply making a phone call to the insurer is the best approach for starting the claim process. If you're the owner of a life insurance policy, make sure your beneficiary knows who your insurer is, and where you keep the policy, to help make the claim process easier.

What if I am unsure?

If you are at all unsure about buying life cover you should get professional advice from a regulated adviser. It's also important that the adviser is independent and has access to the whole market rather than being tied to just a few providers.

About the Author
If you know what life cover you need and don't need advice, a discount life insurance broker can save you up to 40% by sacrificing some of the earnings received from the insurance company. Visit Life Saver to compare discounted life insurance quotes from up to 20 UK insurers.

What is Life Insurance and Why you need them?

by E K Gann

Life insurance is a contract between the policy owner and the insurance company, where the insurer agrees to pay a sum of money upon the occurrence of the policy owner's death. In return, the policy owner agrees to pay a stipulated amount called a premium at regular intervals.

Life assurance is a contract between the insurance company and the policy buyer whereby a benefit is paid to the designated Beneficiarie/s if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon life/s of the people named in the policy.

Insured events that may be covered to include death and accidental death.

Life insurance may be divided into basic classification of temporary and permanent and may be sub classified into term, universal, whole life, variable, variable universal and endowment life insurance.

Term life insurance provides for life insurance coverage for a specified term of years for a specified premium.

Permanent life insurance is life insurance that remains in force until the policy matures or unless the policy owner fails to pay the premium when due.

life insurance is an easy way to protect your family and furhter more you can get great coverage at a price you can afford.

Life insurance offers financial protection for the family. You may think that you will not need life insurance when you are still single and young. One thing for sure is when you get a life insurance policy at a younger age; your cost of the premiums will be low. But as you take on more responsibilities and your family grows, your need for life insurance increases. The proceeds from a life insurance policy can replace the income lost to your family upon your death. Life insurance to pay off debts and expenses, leave money to charity, and cover final and estate expenses and even double as a life long savings. You may able to cash out as and when you may need emergency cash. For this you will have to look closely to the terms and conditions as stated in your policies. Talk to an insurance agent or a financial planner for details advices.

About the Author
This article is written by E K Gann. His aim is to work together and help others starting business online. Especially beginners who are facing problems and difficulties getting resources. Read more about life insurance and related topics at : http://atresources.com/lifeinsurance

Reliable Life Insurance Company - How To Find The Best Companies?

by Elizabeth Newberry

A life insurance policy is a huge purchase. Think about it - your life insurance policy can help you and your family in times of financial stress while you're still alive, and they can help your beneficiaries, who are usually your family members, in times of financial stress after you've passed away. Naturally you want to purchase your life insurance policy from a reliable life insurance company; but, which companies are the best? Those which are financially strong and customer-focused.

To ease your worries, most life insurance companies don't suddenly disappear due to financial struggles and/or bankruptcies. This is because the business of selling life insurance is heavily mediated, and in order for a life insurance company to be approved to do business in a state, it must prove itself to be financially secure and reliable. So, you shouldn't feel too hesitant about purchasing a life insurance policy from a life insurance company that hasn't been around very long if that life insurance company offers you a great package; however, if you feel more comfortable choosing a reliable life insurance company that's been around for decades, you can find the top rated life insurance companies by checking out the different ratings given by independent research companies.

Once you have decided on a few life insurance companies that seem reliable, reputable, and worthy of your business, it's time to do your own research. You definitely want to choose a life insurance company that offers friendly and accurate customer service, whether you decide to complete the transaction face-to-face with an agent from the life insurance company, or make the purchase online and by telephone. Schedule an appointment with an agent or call a customer service representative with any questions you have about their life insurance policies. Their patience and the thoroughness of their answers will give you a pretty good idea as to whether or not you want to do business with them.


About the Author
Reliable Life Insurance Company - Which Companies are the Best? Affordable life insurance for seniors

Term Life Insurance for Newborns and Children

by Sharon Taylor

There seems to be a lot of controversy over whether or not a family needs to purchase life insurance for a newborn or young child.

Practically the minute your new baby is born you are bombarded with marketing literature and applications for life insurance stating that buying insurance is not only practical but a good way to ensure that your child is protected or that they will benefit later in life. Some of the marketing literature appeals to your emotions (which is perfect after seeing your new bundle of joy) while other literature uses guilt tactics by suggesting that your child will be deprived if you do not buy a policy.

Ultimately, the decision is up to you whether or not you think your child or your family as a whole will benefit from a life insurance policy for your child. The best thing to do is educate yourself on the overall process and reasons for why life insurance is a necessity for young families.

If you do decide to buy a life insurance policy for your newborn or child, term life insurance seems to be the best policy to purchase.

Why Term Life?

Term life insurance can be purchased for many different face values as well as for a number of different periods from 5 to 30 years. These policies are often convertible down the road and realistically, serve the best purpose for a baby or child.

To be sure, newborns and children are not the breadwinners for families. As coarse as it may sound, the reality is losing a child will not devastate a whole family in terms of financial ruin if, for instance, the entire income of the mother or father should disappear. The whole purpose of life insurance is to make sure that your family can maintain their current lifestyle or that your children will be able to attend college should you or your spouse become deceased. An insurance company would surely wonder if you took out a huge policy on a newborn or young child, so realistically, the benefits for someone so young would not support a family.

The problem with insurance companies suggesting that a family is depriving a child down the line if they do not purchase insurance causes a couple of problems. If parents do indeed decide to insure their newborn or young child they often neglect to buy enough insurance for themselves because they look at the overall budget for policies versus the payout. Second, while it appears that a life insurance policy will serve as a savings account should the child survive the policy by building cash value equal to or greater than the premiums paid, there really are better vehicles of savings than an insurance policy. Any financial advisor would choose a college 529 plan over an insurance policy.

The beauty of buying a term life insurance policy if you really must insure your newborn or young child, is you can buy a policy for as little as $5,000.00.

These days that may not cover the whole amount of a funeral service, but it would help. Even if you increase the face value to $10,000.00 it would still be less expensive than going with a whole life policy or any other that build cash values. Further, if you choose a level term life policy the premium will remain unchanged for the life of the policy. Should you later decide to renew, chances are the child, who would most likely now be a teen or young adult, probably would not have to undergo a medical exam since they are still so young.

Term life insurance policies are the most cost effective way to cover any expenses you may incur should the unthinkable happen to your child.

About the Author
Sharon Taylor writes articles for eQUOTE Life Insurance. eQUOTE is a leading Internet life insurance company providing families with no-obligation term life insurance quotes and other helpful family insurance resources since 1999.