Which Life Insurance Policy Should You Buy

by Donald Lusan

Which life insurance policy should you buy? You will at some time in your life come to the conclusion that you need to buy some life insurance. You have a pretty good idea how much you need but deciding which life insurance policy is best for your particular need is another question. There are many to choose from. May be if we examine the varying reasons why people buy life insurance and which policy best fits a particular need you would more easily come to a decision. Here goes.

Mortgage Life Insurance Protection.

Most people have a desire to own a house at some time. Some are small and cozy and seem to just ooze family. Others are larger and may seem to project affluence and success. One thing they all seem to have in common is that this piece of property is very important to it's owners. Sometimes it is simply pride of ownership that drives a person to buy a house. In other situations this home is bought because the couple may just want a home for the family. They want their children to know that this is their home.

You buy homeowners insurance to protect your home in case of fire or any type of disaster that may destroy it. You also need to buy some mortgage life insurance in the event of the death of the person who pays the mortgage. One of the best policies to use is the decreasing term life insurance policy. You buy this policy for the duration of the mortgage...for example 20 years. Upon your death the insurance company pays your beneficiary an amount equal to the balance owed...

They therefore have a house free and clear. Some people prefer to use, for our example, a 20 year level term life insurance policy. If you died in the first year the same amount would be paid to your beneficiary but if you should die for example in year ten there would be sufficient money to pay off the mortgage but there would be considerably more cash that your loved ones would certainly welcome.

Family Protection.

One of the main reasons for buying a life insurance policy is for the protection of your family in case you should prematurely die. They will need money to pay last expenses like burial costs, probate costs, attorneys fees and of course the big one...estate taxes. Although the congress has repealed the estate tax it has been done on somewhat of a sliding scale until the year 2010...so the fact is that if you are in that tax bracket you have estate taxes to pay upon death.

You also must consider that your family still needs your income after your death. You need a policy the proceeds of which can be paid out in the form of an income. The best way to do these things is to buy a life insurance policy to take care of the cash needs and another life insurance policy that would provide income at your death. In either case the most commonly used policies are the 20 year term life, the 25 year term life or the 30 year term life insurance policies.

Some people like universal life insurance, variable life insurance, variable universal life insurance or whole life insurance. These life insurance policies include cash values which you could use during your lifetime.

Business Life Insurance Needs.

Small business owners needs for life insurance policies differ from individual need or family protection needs even though the focus still is in the surviving family. A corporation or a business partnership would buy a life insurance policy on each of the partners or stock holders that would provide sufficient cash to buy a deceased partners or stock holders shares from his or her heirs. A buy sell agreement is drawn up by an attorney. It is funded by life insurance and is binding. Most business people use 20 year term life insurance policy or the 30 year term life insurance policy for this. Any of the permanent cash value policies can also be used.

Business owners may also buy life insurance to protect the business against the loss of a valuable key employee. The business would own the policy and also be the beneficiary. Upon the death of the key employee the cash from the life insurance policy would be used to help the business stay afloat while they search for a capable replacement.

About the Author:
For additional information on life insurance and how best to use it go to: http://www.lifeinsurancehub.net/termlifeinsurancequotes.html For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and best life insurance companies in the United States as well as Canada. His advice is invaluable. Donald's website is: http://www.lifeinsurancehub.net

Life Insurance Company Performance

Submitted By: Donald Lusan

The performance of a life insurance company can make a big difference to anyone who buys a life insurance policy. The way some experts talk you would get the impression that all life insurance policies are the same regardless of which company you buy from.

If you were going to purchase an automobile you would visit a dealership that sells the kind of car you like, you would consider certain features that may appeal to you and you would pay special attention to the cost. If you don't get your needs met you find another company and do the same thing all over again.

When you decide to purchase a home you have a pretty good idea of the neighborhood you would like to live in, the style and size of home and of course the amount you would like to spend. You contact a real estate agent and if that person does not find something to fit your needs you find another agent.

When you purchase life insurance you should also pay attention to the type of policy that would fit your particular need, the amount of insurance and of course the cost. There is one other thing that you should also give serious consideration and that is the life insurance company itself...

How strong, financially speaking, is this company? How long have they been in business? How well do they perform when compared with similar types of companies? Of course you also want to know how well their premiums compare with other companies.

Some so called experts would like you to think that all life insurance companies are the same. There is nothing further from the truth. Some companies keep their term insurance premiums lower than the rest because they simply are more efficiently operated companies...

Their expenses are lower than others and their investments yield them more. The interesting thing is that these companies have been performing well for a very long time. Their cash values on permanent policies are higher than the rest and so are their dividends. Dividends are not guaranteed but there are life insurance companies paying very high dividends for more than 50 years...some more than 70 years.

As a result of exceptional performance premium rates get reduced. Don't believe the nonsense that all life insurance companies are the same. This is definitely not true. Do your own research through Consumer Reports and other companies that specialize in providing such information like the A. M. Best Company. The results may surprise you.

About the Author:
For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and most admired life insurance companies in the United States as well as Canada. His advice is invaluable. Donald's website is: http://www.lifeinsurancehub.net