Purchasing life insurance is the best thing you can do for your family. Getting it however can be a tedious task leaving more questions unanswered than when you started your research. What is whole life, variable life, Riders? Where is the best place to get your life insurance? What are some of the things to watch out for when purchasing Life Insurance? All these questions and more are discussed and answered in this guide to Life Insurance. After reading our guide, please select you State to learn more about Life Insurance Laws and Regulations pertaining to your area.
In its basic form, purchasing life insurance is really about deciding which type of policy you need, what level of coverage you’re going to get and most importantly, naming your beneficiaries.
The purpose of life insurance is to offer financial security in the event of death. Many people do not realize the importance of having life insurance and leaving their family with some financial security. After a death the last thing your family wants to worry about is money. And we have heard so many horror stories of widowers losing their homes and falling into serious financial debt in their darkest hours. That is why we created this site. To give you the real deal on Life Insurance, so that you can make an informed and educated decision.
You read earlier that buying life insurance is simply about making certain decisions. Which type of policy? What level of coverage? And, naming your beneficiary. Our next section will explain further.
Many people assume that their life insurance policies are locked in stone. That, later in life, when they need more coverage they have to purchase a new policy in addition to the one they currently have. When dealing with permanent life insurance, this can be a costly endeavor.
Be aware, some insurance companies may advise you to purchase a new life insurance policy using the cash savings you have accumulated from your current permanent policy. While the newer policy offers more coverage, it also costs more. Now you have lost your cash savings from your original policy and have more coverage. This is often referred to as “churning” and it is a scam done by many un-reputable insurance companies and agents.
Before purchasing a life insurance policy, you have all the power. In general, life insurance policies are tailored for you and your needs. You can setup your policy to allow you the freedom and flexibility you’ll need throughout your life.
In general, term life insurance is for a short period of time and may not require such flexibilities. However, if you are purchasing a permanent life insurance policy, having these freedoms is essential. Read more about the benefits of permanent life insurance and its various provisions. Most people throughout their lives will need the ability to increase their coverage and decrease their coverage. This can be done with a single policy, without losing your policy or the money you’ve invested in it and you also have the ability to reduce your premiums throughout the years.
Of course, the most common reason people purchase life insurance policies is to provide financial support in the time of their death. Many families do not grasp the concept of the inevitable and they feel they have all the time in the world. However, when that day arrives and you are no longer with your family, in what financial position are you going to leave them in? Many families have lost their homes and fallen into debt because they could no longer afford the mortgage and other expenses. Not to mention, who wants to think about finances at the time of your death?
A life insurance policy is also an excellent way to provide financial security in regards to your children’s education. Term life insurance policies are an excellent way to protect your children’s education. You can even set it to expire when they graduate, thereby reducing your premiums into a more than affordable protection policy.
New policies have been developed to allow you to take loans out against your policy while you are still alive and able to use it. This is an excellent way to access your money when you need it most.
After your death your estate will have to be settled. Designating your estate as your beneficiary can help settle your debts, taxes and can protect your property from sold off to pay those debts.
You can even name a charitable organization as your beneficiary so that upon your death, the organization will receive your death benefit. You could also name your own business as your beneficiary to settle business debts and loans or for your company to invest on your behalf.
In its basic form, purchasing life insurance is really about deciding which type of policy you need, what level of coverage you’re going to get and most importantly, naming your beneficiaries.
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The purpose of life insurance is to offer financial security in the event of death. Many people do not realize the importance of having life insurance and leaving their family with some financial security. After a death the last thing your family wants to worry about is money. And we have heard so many horror stories of widowers losing their homes and falling into serious financial debt in their darkest hours. That is why we created this site. To give you the real deal on Life Insurance, so that you can make an informed and educated decision.
You read earlier that buying life insurance is simply about making certain decisions. Which type of policy? What level of coverage? And, naming your beneficiary. Our next section will explain further.
Adjusting your Life Insurance Policy
This section is designed to provide you with the information you need regarding adjusting your life insurance policy after you have purchased it. By reading and understanding this section you will have even more knowledge when you do go purchase a policy from your life insurance company and avoid making costly mistakes.Many people assume that their life insurance policies are locked in stone. That, later in life, when they need more coverage they have to purchase a new policy in addition to the one they currently have. When dealing with permanent life insurance, this can be a costly endeavor.
Be aware, some insurance companies may advise you to purchase a new life insurance policy using the cash savings you have accumulated from your current permanent policy. While the newer policy offers more coverage, it also costs more. Now you have lost your cash savings from your original policy and have more coverage. This is often referred to as “churning” and it is a scam done by many un-reputable insurance companies and agents.
Before purchasing a life insurance policy, you have all the power. In general, life insurance policies are tailored for you and your needs. You can setup your policy to allow you the freedom and flexibility you’ll need throughout your life.
In general, term life insurance is for a short period of time and may not require such flexibilities. However, if you are purchasing a permanent life insurance policy, having these freedoms is essential. Read more about the benefits of permanent life insurance and its various provisions. Most people throughout their lives will need the ability to increase their coverage and decrease their coverage. This can be done with a single policy, without losing your policy or the money you’ve invested in it and you also have the ability to reduce your premiums throughout the years.
The Benefits of your Life Insurance Policy
Your life insurance policy is more than a financial payout to your beneficiaries at the time of your death. A life insurance policy is an investment and because of this in many cases you can use or have access to your investment capital before you die.Of course, the most common reason people purchase life insurance policies is to provide financial support in the time of their death. Many families do not grasp the concept of the inevitable and they feel they have all the time in the world. However, when that day arrives and you are no longer with your family, in what financial position are you going to leave them in? Many families have lost their homes and fallen into debt because they could no longer afford the mortgage and other expenses. Not to mention, who wants to think about finances at the time of your death?
A life insurance policy is also an excellent way to provide financial security in regards to your children’s education. Term life insurance policies are an excellent way to protect your children’s education. You can even set it to expire when they graduate, thereby reducing your premiums into a more than affordable protection policy.
New policies have been developed to allow you to take loans out against your policy while you are still alive and able to use it. This is an excellent way to access your money when you need it most.
After your death your estate will have to be settled. Designating your estate as your beneficiary can help settle your debts, taxes and can protect your property from sold off to pay those debts.
You can even name a charitable organization as your beneficiary so that upon your death, the organization will receive your death benefit. You could also name your own business as your beneficiary to settle business debts and loans or for your company to invest on your behalf.
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