Top 5 Jobs Which Require Life Insurance

by Bill Mason

Life insurance is an important aspect of everyone’s lives and is something which everyone will have to face at some point in time throughout their lives. This point may come sooner rather than later for some individuals because of the job they perform on a daily basis.

While some individuals start everyday by putting on their suits and racing to get to the coffee shop for their morning coffee, others are strapping on their work boots and preparing themselves for a day of excruciatingly hard labor. As scary as it may sound, there are many individuals who are willing to put their lives in danger every single day when they get up and go to work.

The following is a list of the top 5 jobs which are considered to be the most dangerous jobs in the world. Individuals who perform these jobs are highly recommended to have a life insurance plan incase (god forbid) anything goes wrong on any given day. These are the 5 occupations which made the list:

1. Police/Detectives – Police Officers face life threatening situations almost everyday. They are highly trained to defend themselves and are equipped with protective equipment at all times. Life insurance and disability insurance are crucial for individuals working in the field of policing.

2. Airplane Pilots – Believe it or not, airplane pilots require life insurance because they are dealing with such powerful machines which have been known to have mechanical glitches. Airplane pilots are also highly trained in their field to make sure they do their best to fly safely.

3. Construction Workers – Construction workers are somewhat unappreciated for the amount of hard work they do everyday. They not only put their lives in danger from all the machinery they are expected to operate, but they also face many factors which will affect their health in the long run. Overexposure to sun, heat and excessive lifting are just a few of these factors.

4. Farm Workers – Much like construction workers, farm workers are at high risk of injury or death due to the fact that they are constantly operating heavy machinery. There are hundreds of farm work related deaths a years and thousands of injuries for individuals working in farm fields. Life insurance and disability insurance are important for individuals in this occupation.

5. Fire Fighters – It is a known fact that fire fighters put their lives on the line everyday to save the lives of others. Knowing the potential consequences and performing the job anyways indicates that these workers deserve the highest level of respect from others. Individuals who have chosen careers in firefighting are also likely to have a life insurance policy.

Is your job dangerous? Is your life on the line everyday? Maybe not, but there are many other factors other than your occupation which may indicate you need life insurance. Life insurance is a plan which will ensure your loved ones are taken care of incase anything happens to you. Wouldn’t you like to know your family would be looked after should this type of situation occur?

About the Author:
Bill Mason is a retired insurance agent who now writes as a freelance writer for http://www.insuranceguide101.com – a site that offers information on insurance of all kinds including online life insurance http://www.insuranceguide101.com/life-insurance/, business insurance http://www.insuranceguide101.com/business-insurance/ and more

Why Don't Women Have Life Insurance?

by Ivon T. Hughes

Traditionally, life insurance companies solicited men as the main breadwinners in a family to ensure, that they had adequate life insurance coverage.

Now, times have changed, but the statistics on women show that great percentage of American and Canadian women carry no life insurance. And those that do have a policy, carry about half as much coverage as men do.

Most modern U.S. and Canadian households are dual-income households. If you are married, especially if you have children, would your husband be able to afford the family style of living if you were to pass away? If you are single, who would assume the burden of paying for your final costs if you were to pass away? This may fall to your parents, who are also likely to be living on a fixed income. Many single women, especially those with children, may be on a tight budget and feel they can't afford life insurance. However, they may be surprised to know that a 30 year old healthy woman can purchase a $250,000 10-year term life insurance policy for $12.00 a month. If you are a healthy 50 year old, that does not mean it is too late to buy affordable life insurance; your cost for the same policy as above would only be about $37.00 a month. If you have children, it is especially important to make sure they will be taken care of if anything were to happen to you.

Studies show that nearly six out of ten women in Canada are living on their own by the time they are 85. In addition, women generally outlive men by an average of six years. If you have adequate life insurance coverage, dependents will be able to continue their lives and standard of living. That way they only have to deal with the grief of your passing, instead of any financial burdens incurred by it.

Women need life insurance protection to ensure that whoever survives them will be provided with available capital. Term life insurance has always been one of the most cost-effective ways for both men and women to protect their loved ones. Compare term life insurance rates and policies today and see how affordable peace of mind can be.

About the Author:
Ivon T. Hughes, The Hughes Trustco Group Ltd. Online Insurance Broker - Get a FREE Quote TODAY! Tel: (514) 842-9001 Email: info@trustco.ca Web: http://www.hughestrustco.com

Cheap Term Life Insurance Is Available Everywhere

Cheap term life insurance is easier to get than most people think. Dealing with a life insurance company has been made much simpler thanks to the Internet. No more spending hours of precious time with insurance agents. You can get the best term life insurance rate online; you can do it even on your lunch break!

Cheap term life insurance on the internet can be found by seeking out an independent insurance advisor for advice and price quotes or you can do it yourself. There are life insurance companies that will give you a term life insurance policy that exactly matches your needs and an independent advisor can steer you to the right company.

Cheap Term Life Insurance Is the Best Life Insurance Available

Cheap term life insurance lies in specialization. Some life companies cater to elderly customers, others have better policies for smokers or people with a history of heart disease. Sound daunting? Yes, it is. But if you engage an independent insurance advisor online, you can then make an informed choice.

It is also important when trying to get the best life insurance rate that you consider other factors apart from price. Why? These factors may help save you money in the long run even though the company may not have the cheapest term life premium. For example, is the company financially strong? Does it have the best renewal rate? Is the company insisting on a medical exam? Cheap term life insurance is available but it also has to have other features.

Whatever method you use to find the best deal for you, remember you can compare both prices and companies.

About the Author:
Ivon T. Hughes, The Hughes Trustco Group Ltd. Online Insurance Broker - Get a FREE Quote TODAY! Tel: (514) 842-9001 Email: info@trustco.ca Web: http://www.hughestrustco.com

Term Life Insurance Vs. Permanent Life Insurance

by Bill Mason

Choosing a life insurance plan is difficult; it takes a lot of time and research in order to ensure that all aspects are thoroughly examined before making a final decision. There are basically two forms of life insurance to choose from: term life insurance and permanent life insurance.

Below you will find valuable information regarding both forms of life insurance as well as other helpful information which will assist you in deciding which form of life insurance is best suited for you and your situation.

The first thing to do is to research and understand the concept of both forms of life insurance. These two forms of insurance have been compared to buying or leasing a car. Term life insurance is much like leasing a car, you can purchase insurance for a specific number of years, but once those years are up, so is your insurance coverage. Permanent life insurance is similar to buying a car. When you buy a car, it’s yours and you can drive it forever if you like. Permanent life insurance stays with you until you die.

Depending on your situation, each form of insurance can be very beneficial and offer many great opportunities. Below you will find a more in-depth explanation of each form of insurance providing advantages and disadvantages of both.

Term Life Insurance

Benefits:

• Term life insurance is inexpensive and can cost a considerable amount less than permanent life insurance.

• There are no strings attached with this form of insurance and you are free to stop paying whenever you want.

• You can begin using term insurance and if you feel like you want more coverage, you can then convert to permanent life insurance if you wish.

Downfalls:

• Term life insurance only provides coverage. There are no other rewards and there is no cash value.

• Yes you are free to stop paying whenever you please, but should you choose to do so you will no longer have any life insurance coverage.

• Term prices increase at a rapid pace as you get older and as you get older, your need for this type of insurance will become more and more crucial.

Permanent Life Insurance

Benefits:

• Permanent life insurance can accumulate into cash value and savings. Any cash value which you receive will be tax deferred.

• There is no risk involved in this form of insurance. Your loved ones will receive a death benefit regardless of when you pass away, whereas term life insurance will only pay out if you happen to be covered when you die.

• You can borrow the cash value you receive to pay for college, a vehicle, etc. You can do this without receiving a penalty for doing so.

Downfalls:

• The most noticeable disadvantage to permanent life insurance is the cost. This form of life insurance will cost you a great deal more than term life insurance.

• Should you decide to forgo your permanent life insurance coverage, you will be required to pay a large penalty which will be bounded by law.

About the Author:
Bill Mason is a retired insurance agent who now writes as a freelance writer for http://www.insuranceguide101.com – a site that offers information on auto insurance http://www.insuranceguide101.com/car-insurance/auto-insurance-coverage.aspx and pet insurance http://www.insuranceguide101.com/pet-insurance/

Term Life Insurance On Your Business Partner

by Ivon T. Hughes

Life insurance is something we often take out to protect our family and our loved ones, but that's only one example of how life insurance can save us in unhappy circumstances. Businesses also need protection and those with partners realize that if a business partner were to pass away, the business itself could be jeopardized. Not only does the work that partner provide in the company need to be replaced, but so do their other valuable contributions.

Term life insurance on your business partners provides the best answer. Term life insurance works well because it provides coverage for a specific time period with higher coverage amounts which require lower premiums. This low cost life insurance option could help you keep your business going in the event of a partner's death. The money from the term life insurance policy could be used to pay off outstanding business loans, hire replacement workers or even to help the deceased's family in their time of need.

In the past, many people dreaded making their own life insurance purchases, so they have never considered taking out a policy on their business partners. Today, however, the ability to get a term life insurance quote online without having to deal face to face with life insurance company's agents, makes the entire process simple from comparison to purchase.

Low Cost Term Life Insurance

To choose a term life insurance policy, you should go online to an independent term life insurance advisor such as The Hughes Trustco Ltd. These advisors can provide you with term life insurance quotes from a wide array of providers. You can conduct your own life insurance comparison in order to find low cost life insurance policies that meet your and your business's needs.

Term insurance rates do vary considerably from company to company and from person to person. The amount of desired coverage, the fixed term of coverage, the health of the insured, and other lifestyle related factors can all influence the cost of the life insurance premiums you will pay. However, term life insurance will always be the most affordable life insurance option available, and when you go through an independent advisor, you'll be able to compare those low cost life insurance options at a glance.

Once you make the decision to purchase life insurance with your business partners, you shouldn't wait. We never know what the future holds and, although we don't like to think about it, an accident could come out of nowhere and devastate everything we've worked so hard to build. Protect yourself and your business today by obtaining a quote on all the parties involved.

About the Author:
Ivon T. Hughes, The Hughes Trustco Group Ltd. Online Insurance Broker - Get a FREE Quote TODAY! Tel: (514) 842-9001 Email: info@trustco.ca Web: http://www.hughestrustco.com

How to protect your life insurance policy while going through a divorce

Life insurance, more than most things you buy, relates to the circumstances of your life. You buy life insurance to protect your family from financial loss stemming from your death. You tie the amount of your life insurance to the money your family will need to provide an income, pay off debts, put children through college and cover financial commitments.

But what happens to life insurance when you’re about to dissolve your marriage? How do you deal fairly with a soon-to-be ex-spouse, yet still make sure you have coverage for the future? Is there a way to provide for adult children of a previous marriage without going broke -- especially if you have children through a second or third marriage?

Here are a number of considerations you should be aware of:

- Don’t assume that your insurance agent or company knows about your circumstances. If you don’t change your beneficiary, your former spouse may receive the proceeds of your policy upon your death. If the designation simply reads, “husband of the insured” or “wife of the insured,” and there is no new spouse, the secondary beneficiary receives the proceeds.

- You may be able to transfer ownership rights of the policy as part of a property settlement or to ensure continuation of alimony payments. Your ex-spouse may not press as hard for more support or a greater slice of an ongoing pension if he or she remains the designated beneficiary on a permanent life insurance policy. Of course, you need to ensure that your policy remains a valuable asset by keeping up premium payments.

However, transferring an existing cash value policy (as opposed to a term policy, may carry with it the burden of federal gift tax, unless you transfer the policy prior to divorce. Be sure to discuss this option prior to the finalization of your divorce.

- Don’t overlook the possibilities life insurance may provide for dealing fairly with children from your previous marriage. If you’re paying alimony to your previous spouse and have a second family with your new spouse, adult children from your first marriage may sue your estate after you’re gone if they aren’t dealt with at least as fairly as the children from your subsequent marriage(s).

A permanent life insurance policy can be an immediate "estate replacer" to children from your first marriage -- it helps you replicate accumulated assets that you wish to pass on to the children of your first family -- but can’t afford to without neglecting the needs of your new family. Essentially, you purchase a permanent life insurance policy on yourself and designate your adult children as beneficiaries. When you die, proceeds bypass the probate process and pass directly to your adult children. Your immediate spouse and any children from that marriage are left with your accumulated property and assets -- so you’ve provided for both families.

If you’re contemplating divorce, don’t forget the options you may have with respect to your life insurance coverage. Divorce is tough enough -- don’t overlook the flexibility and security this valuable asset can provide.

ABOUT THE AUTHOR
Matt McWilliams is one of the co-founders of HometownQuotes.Com, an online insurance quotes web site. He is originally from Pinebluff, NC and graduated from Middle Tennessee State University in 2002. He is considered an expert in the field of online insurance shopping and finding new ways to help consumers save money on their insurance. For more information visit http://www.hometownquotes.com.

How to Buy Life Insurance

by Raul Works

In this article, we will discuss why this subject is so important and how you can benefit from this information.

Export life insurance is a cool way to shelter your family after you're deceased. If you know what to look for, you can get great contain age at a detriment you can present.

Why buy life insurance?

Topping the incline of debates to buy life insurance is the monetary shelter ion life insurance agreements. If you're definite and just initial out, you may not require life insurance. But as you take on more responsibilities and your family grows, your require for life insurance raises. The proceeds from a life insurance strategy can switch the wages gone to your family leading your loss. You might also want to buy life insurance to pay off debts and expenses, allow money to humanity, and contain ending and maintain expenses.

As you continue to read this article, pay special attention to how parts 1 and 2 relate to one another.

Desire duration or notes worth

There are two simple styles of life insurance: duration life insurance, which presents life insurance contain age for a precise episode of time (the duration), and notes worth (enduring) life insurance, which combines a loss help with a notes worth factor. notes worth insurance agreements time shelter ion, while duration insurance may be the most presentable choice if you're trade life insurance mostly for the monetary shelter ion it agreements, and your require for life insurance is passing (awaiting your children allow the nest, for command). Some duration policies (called "convertible") will authorize you to talk the duration life insurance strategy for an enduring one at some purpose.

Decide how greatly contain age you'll require

The total of life insurance shelter ion you should buy depends on how greatly wages your survivors will require, how greatly you own and owe, and the total of other life insurance limitless to you. If you're married, both you and your partner should judge trade life insurance. One of the easiest habits to guess how greatly life insurance shelter ion you should buy is to use a life insurance requires calculator.

Gather a number between 1 and 30

Idiom life insurance is usually vacant for episodes ranging from 1 to 30 times. Think choosing a duration that matches your require for life insurance shelter ion. For command, if your highest debate for trade life insurance is to shelter your 7-year-old twins waiting they're out of academy; you'll want to buy a strategy with duration of at slightest 15 times.

How greatly will it detriment?

How greatly you pay for life insurance will depend on a number of endanger factors, counting your age, your strength, whether you use tobacco, your family strength narration, and the style and total of life insurance you're trade. Keep in tend that the premium you're quotation primarily will rise later. For command, when you buy duration life insurance, toll is warranted only awaiting the end of the duration (yearly for yearly renewable duration or at the end of a precise number of times for quantity duration). While most life insurance policies can be renewed at the end of the duration, you'll pay an elevated premium for contain age.

Store around

When comparing quotations for life insurance, make certain that the insurance contain age you're comparing is related. And memorize, any strategy that you buy is only as good as the guests that issues it. Find out what rating the guests have customary from main ratings military, such as A. M. Best or regular & modesty's. These companies evaluate an entertainer's monetary form and claims-paying ability. The guests generous you a quotation should present you with this information. You can also friend your maintains department of insurance to find out more about an entertainer's highest.

Suggest an application

Once you're eager to grip a life insurance strategy, you'll satiate out a life insurance application that contains questions about your existing and bygone strength narration and lifestyle. You'll usually be necessary to take a remedial exam, given and salaried for by the insurance guests. The answers you give on your application, along with the outcome from the remedial exam and your bygone strength narration, will help the insurance guests dedurationine whether to agreement you a strategy, and if so, at what detriment.

Learn the idiom

Perhaps a life insurance reduce isn't as exciting as a best-promotion book, but read it anyhow. Rule provisions, the total of helps, the premium, and other charges you'll pay will be inclirequire along with other important information such as the beneficiaries you've named and the premium warrant episode. Make certain you understand everything in the strategy. Under the laws of your maintain, you may have a "limitless look" episode (typically at slightest 10 time) during which time you can cancel the strategy lacking penalty.

We hope that you have found this article interesting and eye catching to say the least. Its objective is to entertain and inform.

About the Author
Raul Works writes for http://www.life4insured.com where you can find out more about Life Insurance and other topics.

Life Insurance: A Perfect Security Cover

by Allan Elvin

Trouble with modern times is the fact that life is fast becoming very uncertain. One only has to glance at the statistics to realise this grave reality of modern times. Accident rate has increased manifold in the UK in the last ten years. What is even more worrying is the fact that in most of the cases, the rate of casualty is high. This is only to be expected. Life has picked up enormous pace and everyone is in a hurry to reach one's destination. It is this eagerness to reach ones destination that makes people overlook traffic signals with disastrous consequences. And if it so happens that the deceased man happens to be the only bread winner of his family, then one can understand the plight of that family.

It is here that life insurance uk proves its worth and ensures that the family does not face any financial crunch at such a critical juncture. Had it not been for life insurance, such families could very well have been brought on the brink of disaster. However, one must keep in mind that one has to be very cautious and check a few points at the time of getting insured, to gain maximum from it.

First of all, one must ensure at the time of signing the contract that the policy comes to effect as soon as it is signed. He should also make sure to find out what the formalities are that his family members will have to go through to get the premium in case he faces untimely death. He should also make sure not to default on monthly premium as well as not to furnish any wrong information to the insurance company, for any such act can lead to the cancellation of the policy.

Thus, it becomes clear that Life Insurance UK has emerged as one of the great utility services of this era. All that one has to do is to take care of certain precautions and reap the benefits that service like life insurance has to offer.

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 uk and in guiding you on its various details.

Term Life Insurance Features

Term life insurance is considered to be pure insurance protection as it has no other value. This is in contrast to a permanent life insurance policy such as whole life which builds value over time.

Term Life Insurance Does Have Value

But term life insurance does have some value in certain circumstances.

A person in the upper age brackets who has a term life insurance policy he no longer wants, is able to sell this policy to a company which makes these types of investments. For example, if the person is aged 65 years or more in good health, a company would buy this policy and convert it into a whole life policy. Then they would calculate his life expectancy and amount of premium they would expect to pay, giving him an amount taking these figures into consideration.

Is This A Good Deal For The Term Life Insurance Buyer?

What else is he going to do with it, if he doesn’t want to continue to pay? If he just stops paying on his term life policy, you can be sure the life insurance company won’t offer him a nickel.

But if he is smart enough to live where theses types of transactions are permitted, he will receive a cash payout! What is wrong with that? He owns the policy and can do with it as he wishes.

Is This Term Life Policy Good For The Purchaser?

Of course. They buy any number of term life insurance policies and spread the risk again with some clients dying earlier or later than anticipated. The only loser is the life insurance company which has been getting fat off the premium all those paying years, certain in the knowledge that there is very little chance they will have to pay out the death benefit.

How Do We Know This Is A Good Deal All Around?

Because a lot of life companies own or own shares in these companies purchase these polices. Obviously they have figured out that if the client sells a policy that they should be in a position to profit.

Is A Term Life Policy Good Till You Die?

Yes, as long as you buy the correct type. A term 10 or term life policy for 20 years will not do it if it expires before your death. You need to buy a term100 year policy so that you can be reasonably sure you won’t outlive it. You do NOT have to buy whole life to achieve this result. Just make sure that if you want to leave money when you die, get in early and buy a term life policy to age 100.

ABOUT THE AUTHOR
Ivon T. Hughes of The Hughes Trustco Group is the author of the Life Insurance Handbook: How To Get The Best & Cheapest Life Insurance available FREE to all new subscribers at http://www.hughestrustco.com.

Term Life Insurance for Those Who Work in Hazardous Occupations

by Sharon Taylor

As overall lifestyle is taken into consideration when applying for term life insurance coverage, one of the principals that underwriter's evaluate when deciding to grant approval is your career. Applicants who risk their lives or are subject to potential disability on a regular basis will pay a higher term life insurance premium than the average person in relatively "risk free" occupations.

Hazardous Occupations

Many people must work in hazardous occupations as their primary source of income. Pilots, aviation or scuba diving instructors or firefighters are a few examples of high risk jobs. As unfair as it might seem, all these professionals can expect to pay higher term life insurance premiums. However, reasonable term life insurance coverage is still possible if you obtain necessary licenses and take safety classes. It is best to ask your insurance carrier about the necessary requirements so that you can meet them before applying for coverage.

Waiver of Premium Rider

For those of you who work in jobs that could potentially disable you physically, you may want to consider a "Waiver of Premium Rider." By adding this rider to your term life insurance policy, your premiums will be waived should you become totally disabled. This type of rider is ideal for those who work in jobs such as metal or iron work or any hazardous occupation where you have to deal with chemicals, fire or specialized machinery.

Usually waiver of premium riders change along with any term life insurance policy premium changes (such as an increase due to age). The waiver of premium rider terminates on the renewal date closest to your 60th birthday.

Choosing a Term Life Insurance Carrier

If you work in a hazardous occupation, it is important that you do you due diligence when choosing a term life insurance carrier since you are in the "high risk" category. Not only should you make sure to choose an A or A+ rated term life insurance company, but it is also important to check what kind of "mortality table" the carrier uses. Mortality tables help determine the premiums you pay by measuring what kind of risk you are. Many term life insurance companies use older tables, for example, on 30-year old data. If your insurance company stays up-to-date they will employ a method called "clinical medical underwriting." This method takes into consideration all the current medical advances and lifestyle choices that allow people with medical/disability problems to live long and productive lives.

Getting several quotes for insurance policies will ensure that you get the best term life insurance rates and coverage. Why pay more than you already do working in a hazardous occupation?

About the Author
Sharon Taylor is an expert life insurance writer and frequent contributor to eQUOTE Life Insurance. eQUOTE is a leading Internet resource for life insurance prices, quotes and comprehensive life insurance resource information.

Types of Life Insurance

by Luke Ashworth

Most life polices are single life polices. That means that only one life is insured. A person can take a policy out on their own life. That is called an own life policy. Alternatively someone may take out a policy on the life of another person. That is called a life of another life insurance policy and there must be some insurable interest. For instance a wife insuring her husband or visa versa.

Often a husband and wife will take out a policy on their joint lives. In these cases the choice is between a policy that pays out on the death of the first life insured or one that pays out on the death of the second life insured. The first death policies are usually taken out with a view to protecting the family. Second death polices are often used in inheritance tax planning. The premium for a first death policy would always be a little more expensive than a second death policy.

The three basic types of life insurance policy are ‘term life’, ‘whole life’ and finally ‘endowment’.

Under a term life policy the policy will only pay out if the life insured dies within the policy term. If the life insured dies outside of the policy term then the policy will not pay.

Level term is the simplest type of term policy with a level sum insured during the whole of the policy period.

Reducing term cover is where the sum insured reduces either each year or each month by a set amount. These policies are often used to cover the reducing outstanding balance of a repayment mortgage.

Renewalable term allows for the policy to be renewed at the end of the term without the need for a medical. These are usually only on offer if the life insured will be below a maximum age limit when the term of the first policy expires.

Convertible term policy includes an option within the policy for it to be converted into a whole life or endowment policy without the need to the life insured to under go any medical. If the policy is converted then the premium will change to reflect the new basis of the policy. There may be terms and conditions attached to when the conversion can take place.

Under a whole life policy the insurer agrees to issue the policy for the whole of the life insured’s life provided that the life insurance premium continues to be paid. It is common for whole life polices to start off with a low sum insured and for the sum insured to increase as more premiums are paid into the fund. These policies are said to have an investment factor and if maintained for long enough can be cashed in.

Endowment policies run for a fixed term but include an element of investment. They will either pay out if the life insured dies during the term of the policy or on the maturity date of the policy when it reaches the end of the term insured. These policies can be arranged so that there is a mix between insurance element of the policy and the investment factor. Sometimes these policies are used as an investment vehicle to pay of a mortgage, however it must be remembered that investments are not guaranteed to match expectations and it is possible for a short fall to occur.

This article does not represent ‘financial advice’ as each persons individual requirements will be unique to their needs. If there is something in the article which you which to rely on then please check those details with any person from whom you purchase a term life policy at the time of purchase.

ABOUT THE AUTHOR
Luke Ashworth writes for Protected.co.uk, offering views on life insurance in the UK, visit http://www.protected.co.uk/ today and compare life insurance plans in minutes.

Life Insurance - Who Should Have Life Insurance And What Kind Of Policy?

by Ivon T. Hughes

Life insurance doesn't benefit the person that dies; it benefits those who are the beneficiaries. There are many types and many reasons to buy life insurance but you need to consider the needs of your family and how long they will need protection.

Life Insurance For The Living

The best life insurance policy is one that pays the biggest benefit. If there are young children you should have a term life insurance policy and if both parents work, there should be disability insurance as well. And anyone with dependents or liabilities, should move to protect themselves at the lowest possible cost.

Do I Pay Forever?

The reality is that the policy should benefit the surviving spouse after the children have left home if you do not have a lot of assets.

Term Life Insurance

The two most common types of life insurance are term life insurance and whole life insurance. Term life insurance offers coverage for a specific number of years with a set premium. If you choose a policy to age 100, you are buying a policy, similar to whole life but without the cost.

The biggest drawback is that you can keep on paying and have no value if you decide to cancel. But that is what life insurance or any type of insurance is about; risk.

You insure your car and house but you don't secretly hope to have an accident or your home burn down. And whenever you sell either, you cancel the policy but don't receive a refund of the premiums.

And so it is with term life insurance. It is just that; insurance against an event that may happen prematurely. And if you decide to keep it, your purpose has changed from protection against death to the provision of the proceeds to your family and loved ones.

Whole Life Insurance

Term life insurance is up to five times cheaper than whole life and for that reason, provides up to five times greater coverage. This type of policy will provide a cash value at a later date, but remember that you have paid a fair amount more in premium.

And this cost of term life insurance compared to other types, holds true until the older ages. Then both types must be compared to see which offers the greatest advantage.

Both policies offer protection but a very different cost.

When you are younger, the two best reasons to buy term life insurance are that it is cheaper and gives you greater coverage.

When you are older, your needs have changed. If you have become wealthy, perhaps you need to continue with the coverage to pay income taxes. If not, perhaps you will need to keep the coverage so that your spouse can buy a life annuity to provide just that, an income for life.

ABOUT THE AUTHOR
Ivon T. Hughes of The Hughes Trustco Group is the author of the Life Insurance Handbook: How To Get The Best & Cheapest Life Insurance available FREE to all new subscribers at http://www.hughestrustco.com.