In general, life insurance is something we prefer not to think or talk about. It is never easy to think or talk about our mortality. However, it is also important to remember that life insurance was designed to provide financial protection for the ones we love and want to keep protecting after our demise. Therefore, it should be seen as one of the most important and most caring of all insurance policies, since it provides a lump-sum payment to your loved ones at time when they need it most.
The information provided below, together with the glossary should help you gain a better understanding of the different types of life insurance policies and terms used. It should also help you determine which life insurance policy best serves your needs, as well as answer most other questions you may have about life insurance. However, if you still have unanswered questions, or need the guidance of a life insurance professional, feel free to call call us "Toll-Free" at 1 (888) 736-3417.
What is Life Insurance, and Do I Need It?
Universal life insurance was introduced during the early 1980's as an alternative to whole life and term insurance, both of which have been in existence for more than a century. This type of policy is often referred to as flexible-premium life, because premiums can be adjusted up or down during the term of the policy, or even halted for a certain length of time, while keeping the coverage in effect. Generally, the policy fee and the mortality cost (i.e. cost of insurance) are deducted from the cash value on a monthly basis. The remaining cash balance continues to earn interest on a tax-deferred basis. The credited interest rate changes annually, but cannot fall below the minimum rate specified in the policy. A detailed policy statement is sent to the policyholder on each anniversary.
Whole Life Insurance
Once you've decided that you need life insurance, you'll need to determine the amount of coverage you need. That, of course, is a very personal decision. But as a rule of thumb, your death benefit amount should be five to eight times your annual earned income. In determining what is best for you, you may also want to consider other obligations you may have and whether or not you want to have them completely or partially paid off upon your death. Such expenses include your mortgage, outstanding debts and future college expenses for your children. Current tuition costs for a 4 year public university are running about $7,000 per year while private institutions are running around $16,500 per year. When estimating future college expenses be sure to factor in annual inflation. To further help you determine the amount of coverage you need, you may want to review the "California Life Insurance Buyer's Guide", which was prepared by the National Association of Insurance commissioners.
How do I get a "Free Quote" on Life Insurance?
To receive a free quote, simply click on the button immediately below this paragraph, then complete the form that appears on your screen while following the instructions on the form. You can also request a quote for you spouse on the same form. Requesting a free quote does not place you under any obligation.
For More Information Contact:
For More Information Contact:
Send E-mail to email@example.com with questions or comments about this website.
Copyright © 1998-2003 Henry Best Insurance Services