A life insurance policy provides a sum of money—called a death benefit—to one or more beneficiaries in the event of your death. A permanent life insurance policy is designed to last throughout your life and does not expire after a certain number of years. Common types of permanent life insurance include whole life, guaranteed issue whole life, universal life, and variable life insurance. Each of these permanent life insurance policy types has different features, but all include a cash value account that you can access. Here’s what you need to know about permanent life insurance to decide if one of these policies, and which type, is right for you. What Is Permanent Life Insurance?...
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Is life insurance a good way to invest? When stocks do well, it becomes easier for life insurance companies to sell?permanent life? products that grow in value with the market. Unlike term life policies, which only pay when the insured person dies within a specified period, permanent life policies are not restricted to a specific period and accrue cash value. Two of the more popular versions of this insurance are?variable universal life? and?indexed universal life? policies. Variable universal life (VUL) policies generally offer people multiple investment options. Salespersons will point out that when the stock market does well, the returns on investments will be better than returns...
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Life insurance lingo can be complicated and hard to understand, but knowing the difference between term life insurance vs. permanent life insurance is a good start. There’s a big difference between the two — term life insurance only covers you for a certain amount of time. The money you paid in premiums is gone once the term policy expires. In contrast, permanent life insurance is permanent. You’ll be covered so long as you pay your premiums, without having to worry about an expiration date on your policy. The permanent life insurance cost may be higher but is justifiable once you understand what you’re paying for (and why). Take a deep dive into how a permanent life insurance policy works...
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and to shop around for you in order to find the best-priced product that meets all of your requirements. As its name implies whole life insurance is designed to provide coverage for the entire lifetime of the insured. The premiums are usually also guaranteed to stay level during the lifetime of the insured. In addition, whole life insurance can offer the potential for tax-deferred growth within the policy reserve. Whole life policies usually also offer additional benefits to the policyholder. For example, these types of policies offer cash surrender values (CSV’s) if a policy is terminated by the policyholder. Policy loans are also often available from insurance companies or third...
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Nearly half of Americans do not have any form of life insurance. When you realize how vital a life insurance policy could be to your beneficiaries and loved ones still remaining, this seems low. A life insurance policy can aid in paying off any remaining debt such as a mortgage payment, student loans and allow your loved ones to continue without the financial burden that may be associated with your passing. An independent insurance agent can advise about permanent life insurance and any additional life insurance options. They’ll get offers from top life insurance providers and sort through multiple proposals to help find your best choice. What Is Permanent Life Insurance? Unlike term life...
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A reader wants to ensure his growing family is protected but needs help deciding on which type of life insurance is the best option. Question: My wife just got pregnant with our first of hopefully three kids. So now I’m trying to do the responsible dad thing and figure out what kind of life insurance to get. But every time I Google it, I get conflicting advice about “term,” “whole,” and “permanent” life insurance. You’d think the Internet would help me, but it’s actually confused me. Which one should I get? – Mason in Texas Sa El, Co-Founder of Simply Insurance answers… First… don’t feel alone, this is the question that I get asked most often, so let me break it down....
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What is permanent life insurance? Permanent life insurance is a specific form of life insurance that covers the insured throughout his or her entire life, as long as the policy is kept current. Whole life insurance, universal life insurance, and endowment insurance are all types of permanent life insurance. Learn the specifics, benefits and drawbacks of permanent life insurance in the article below and then be sure to enter your zip above for free insurance quotes! Permanent life insurance policies promise to pay a lump sum at the time of death. Endowment policies are slightly different in that they promise to pay either at the end of a specific term, upon its maturity, or in the case of...
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Term vs. Permanent Life Insurance According to industry experts, most people don't have enough life insurance. LIMRA, which keeps close tabs on the industry, recently reported that average coverage equals $163,000, which is equivalent to approximately 3.5 years in terms of income replacement (with the average income being $46,800 in 2019, according to the Bureau of Labor Statistics). That's only half the recommended 7-year threshold. Furthermore, more than half of consumers said that their households would be in immediate or near-immediate financial trouble if the primary wage earner died today. When considering life insurance, one of the most important factors to understand is the...
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Term vs. Permanent Life Insurance According to industry experts, most people don't have enough life insurance. LIMRA, which keeps close tabs on the industry, recently reported that average coverage equals $163,000, which is equivalent to approximately 3.5 years in terms of income replacement (with the average income being $46,800 in 2019, according to the Bureau of Labor Statistics). That's only half the recommended 7-year threshold. Furthermore, more than half of consumers said that their households would be in immediate or near-immediate financial trouble if the primary wage earner died today. When considering life insurance, one of the most important factors to understand is the...
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Term vs. Permanent Life Insurance According to industry experts, most people don't have enough life insurance. LIMRA, which keeps close tabs on the industry, recently reported that average coverage equals $163,000, which is equivalent to approximately 3.5 years in terms of income replacement (with the average income being $46,800 in 2019, according to the Bureau of Labor Statistics). That's only half the recommended 7-year threshold. Furthermore, more than half of consumers said that their households would be in immediate or near-immediate financial trouble if the primary wage earner died today. When considering life insurance, one of the most important factors to understand is the...
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