Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
There are two main types of life insurance, term life insurance and permanent life insurance.Life insurance is purchased to protect beneficiaries from financial loss at the demise of the policy insured. If the financial liabilities, future obligations are temporary then term is the way to go. If they are permanent, then you need to consider permanent life insurance.
The type of life insurance that you get depends on your need for the coverage. If you are protecting your family if the breadwinner died, you would want to get a policy that at least lasted long enough to get your children through college and/or paid off your mortgage. If you have small children, a 20 to 30 year Term policy would accomplish this.
If you want the policy to pay for your funeral, pay estate tax, or leave an inheritance, then permanent policy is needed. If you purchase term insurance, there is a big chance that your policy will lapse and that your health or budget may not allow you to get a new one at that advanced age.
What type of life insurance you get depends on what you want the life insurance for and for how long you want / need the coverage.
An independent life insurance broker who represents several companies can help you find the right policy at the right price.
Here is overview to get you started:
Term is insurance is initially the most inexpensive type of coverage. The premiums rise at the end of each term and the policy has an expiry date. Conversion to permanent insurance is usually permitted before a stated age (check contract for details) ,Best for short term needs.
Whole life is permanent coverage and usually has a guaranteed level premium. The policy's death benefit could be designed to rise in value, In addition there could be a significant build up of cash value. This type of policy has long term applications in financial, retirement and estate planning.
Since the premium is level, it is initially higher than term coverage for the same amount. If cost is a concern a combination of whole life and term can often be an alternative.
Universal life can provide permanent insurance coverage. I say can be because it is essentially a whole life policy "unbundled" where you control the amount of premium and the investment options. This flexibility is a double edge sword.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
All great answers... My 4 cents (I can't add just TWO hehehe)...
Stop buying life insurance! What I mean is the old "death insurance" plan that everyone knows. You die, someone gets a check. Great.... If you die. More often than ever before, we survive the cancer, heart attack, stroke, or other critical illness. What use to just kill us now only kills us financially.
There is a new generation of life insurance that you can use without DYING. Commonly called Living Benefits Life (LBL) Insurance, these plans may allow you to tap into the "death benefit" upon the diagnosis of a named critical illness (like cancer or a heart attack), or when you're not able to perform 2 of 6 activities of daily living (ADL). SO your "death insurance" can act like a long term care policy!
Talk to an agent that represents several LBL plans. UNDERWRITING is key. Buy the best plan that you can qualify for. You buy life insurance with your health... you only pay for it with dollars. If you have questions... Reach out! -gravy.
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If you want the policy to pay for your funeral, pay estate tax, or leave an inheritance, then permanent policy is needed. If you purchase term insurance, there is a big chance that your policy will lapse and that your health or budget may not allow you to get a new one at that advanced age.
An independent life insurance broker who represents several companies can help you find the right policy at the right price.
Here is overview to get you started:
Term is insurance is initially the most inexpensive type of coverage. The premiums rise at the end of each term and the policy has an expiry date. Conversion to permanent insurance is usually permitted before a stated age (check contract for details) ,Best for short term needs.
Whole life is permanent coverage and usually has a guaranteed level premium. The policy's death benefit could be designed to rise in value, In addition there could be a significant build up of cash value. This type of policy has long term applications in financial, retirement and estate planning.
Since the premium is level, it is initially higher than term coverage for the same amount. If cost is a concern a combination of whole life and term can often be an alternative.
Universal life can provide permanent insurance coverage. I say can be because it is essentially a whole life policy "unbundled" where you control the amount of premium and the investment options. This flexibility is a double edge sword.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Stop buying life insurance! What I mean is the old "death insurance" plan that everyone knows. You die, someone gets a check. Great.... If you die. More often than ever before, we survive the cancer, heart attack, stroke, or other critical illness. What use to just kill us now only kills us financially.
There is a new generation of life insurance that you can use without DYING. Commonly called Living Benefits Life (LBL) Insurance, these plans may allow you to tap into the "death benefit" upon the diagnosis of a named critical illness (like cancer or a heart attack), or when you're not able to perform 2 of 6 activities of daily living (ADL). SO your "death insurance" can act like a long term care policy!
Talk to an agent that represents several LBL plans. UNDERWRITING is key. Buy the best plan that you can qualify for. You buy life insurance with your health... you only pay for it with dollars. If you have questions... Reach out! -gravy.