Interestingly enough, I am often asked the question, what is the best life insurance? There is however, no overall best type that provides all solutions. What is best for you depends on your circumstances and what you want to accomplish.
Universal life because of the flexibility is considered by many to be the "best". Whole life and term products could also be the "best", again depending on the circumstances and what you wanted to accomplish.
An independent life insurance broker, representing several companies, can help you find the right policy at the right price.
If you have further questions, or feel I could be of assistance, please do not hesitate to contact me.
Asking what is the best life insurance to have is somewhat like asking what is the best type of home to have. It depends on what you can afford, how long you need it, how big you need it to be, and many other factors. No one policy fits everyone, just as no one type of home fits everyone. Calling a reputable agency can help you boil down your needs and your budget into a plan that will work best for you.
The best life insurance to have is the policy that has the largest face amount for the lowest premium at your death to take care of your loved ones. Since no one really knows when they will die, it is important to sit down with an experienced independent life insurance broker and let them professionally shop for the best coverage at the best rate for your unique situation.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
Hmmm. Well, if everybody had the exact same need for life insurance, the exact same budget budget, and the exact same risk profile, that would be an easy question to answer.
But alas! We are all different. So it’s a good thing there are different life insurance products - and strategies - available.
Here are some of the more popular:
Let’s suppose you need a specified amount of life insurance for a specified amount of time. Perhaps you want to cover a mortgage, or a business debt. Maybe you’re required to have a policy to meet the terms of a divorce decree.
And suppose you also want to spend as little money as possible on the coverage.
But you want the premium guaranteed.
The solution here? Term insurance.
Scenario number two:
You know pretty well how much insurance you need, but the timeframe for coverage is a little uncertain. You want to protect your family against your loss, but who knows when the youngest child will be out of the house? Maybe you will even have more children :)
Or, perhaps, you are in business with some colleagues and need to fund a partnership agreement. Not sure yet how long you will be involved.
Here, universal life insurance could be good for you. It’s flexible premium product and can accommodate a wide variety of funding strategies.
On the one hand, you could nail down a premium guarantee for his as long as you want. On the other hand, you could take on a little bit of risk and keep the premium lower with some reasonable interest assumptions in your cash account.
Now think about this: what if you need life insurance for the rest of your life, and and so want a lifetime guarantee on the premium and on the death benefit (Who wants the price to go up when you turn 87?). Not only that: you don’t want to pay an arm and a leg for the coverage.
Here you could go with guaranteed universal life. It won’t give you any guaranteed cash in the long run, but it will give you the lowest guaranteed premium you can find. You could use this kind of policy to pay estate taxes. Make charitable gifts. Fund a special needs children's trust. Protect an elder family member who has become dependent on you.
Another scenario for you: let's suppose you wanted the best guarantees around, in not just the premium... not just the death benefit... but also the cash value. Let's also suppose you just wanted to let it ride and think about long-term cash accumulation - as well as survivor benefit growth. This might be a policy on your kids. Perhaps a retirement supplement. Maybe a vehicle for creating a legacy for the next generation.
For reasons such as these, whole life is a good choice.
Clearly, one size does not fit all in the world of life insurance. But it doesn’t have to :)
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Universal life because of the flexibility is considered by many to be the "best". Whole life and term products could also be the "best", again depending on the circumstances and what you wanted to accomplish.
An independent life insurance broker, representing several companies, can help you find the right policy at the right price.
If you have further questions, or feel I could be of assistance, please do not hesitate to contact me.
But alas! We are all different. So it’s a good thing there are different life insurance products - and strategies - available.
Here are some of the more popular:
Let’s suppose you need a specified amount of life insurance for a specified amount of time. Perhaps you want to cover a mortgage, or a business debt. Maybe you’re required to have a policy to meet the terms of a divorce decree.
And suppose you also want to spend as little money as possible on the coverage.
But you want the premium guaranteed.
The solution here? Term insurance.
Scenario number two:
You know pretty well how much insurance you need, but the timeframe for coverage is a little uncertain. You want to protect your family against your loss, but who knows when the youngest child will be out of the house? Maybe you will even have more children :)
Or, perhaps, you are in business with some colleagues and need to fund a partnership agreement. Not sure yet how long you will be involved.
Here, universal life insurance could be good for you. It’s flexible premium product and can accommodate a wide variety of funding strategies.
On the one hand, you could nail down a premium guarantee for his as long as you want. On the other hand, you could take on a little bit of risk and keep the premium lower with some reasonable interest assumptions in your cash account.
Now think about this: what if you need life insurance for the rest of your life, and and so want a lifetime guarantee on the premium and on the death benefit (Who wants the price to go up when you turn 87?). Not only that: you don’t want to pay an arm and a leg for the coverage.
Here you could go with guaranteed universal life. It won’t give you any guaranteed cash in the long run, but it will give you the lowest guaranteed premium you can find. You could use this kind of policy to pay estate taxes. Make charitable gifts. Fund a special needs children's trust. Protect an elder family member who has become dependent on you.
Another scenario for you: let's suppose you wanted the best guarantees around, in not just the premium... not just the death benefit... but also the cash value. Let's also suppose you just wanted to let it ride and think about long-term cash accumulation - as well as survivor benefit growth. This might be a policy on your kids. Perhaps a retirement supplement. Maybe a vehicle for creating a legacy for the next generation.
For reasons such as these, whole life is a good choice.
Clearly, one size does not fit all in the world of life insurance. But it doesn’t have to :)