| The topic of life insurance, although an | | | | but generally provide a level rather than |
| extremely useful idea in itself, often earns | | | | escalating death benefit. You should also |
| pejorative status in everyday conversations. | | | | check whether the policy has a quick-pay |
| Many of you have had former high school | | | | option, which allows you to pay up the policy |
| classmates or family members try and approach | | | | in 10, 15 or 20 years if you wish. |
| you on the topic of life insurance in a less | | | | |
| than professional manner; they are often very | | | | Universal life insurance provides a mix of |
| pushy in their approach and don't take the | | | | the two coverages. This coverage is |
| time to analyze your needs. This often | | | | considered to be most flexible form of life |
| translates into you buying a policy which is | | | | insurance; you can vary your monthly deposit, |
| not properly suited towards your families | | | | choose a level or increasing death benefit |
| needs. The wrong policy can cost you | | | | options. |
| thousands and leave your family strangled for | | | | |
| cash when they need it most. | | | | To illustrate the basic concept behind this |
| | | | policy, picture a crate. In this crate, you |
| So, is there any easier way to get this issue | | | | put a certain amount of money that you give |
| of life insurance issue handled conveniently | | | | to the insurance company. They than deducts |
| and to your benefit? My advice is to read up | | | | the monthly insurance and administration |
| on the basics of life insurance and get a | | | | costs and the surplus is invested in an |
| feel for your needs and determine what's best | | | | account of your choosing many insurance |
| for you even before you begin dealing with a | | | | companies offer guaranteed minimum interest |
| broker. This can by a daunting task for many, | | | | rates (usually around 3-4 %) but it can be |
| but the good news is that this article will | | | | higher. Now this policy is not without risks, |
| get the ball rolling. | | | | many universal life policies have an |
| | | | escalating insurance costs in order to |
| First of all, we need to assess what are the | | | | maximize the policies cash value build up in |
| basic life insurance types: Term, Whole and | | | | the early years. If the policy does not grow |
| Universal life insurance. Term life insurance | | | | at you anticipated rate of return you could |
| is by far the easiest policy to understand | | | | be left with an empty crate and no insurance. |
| and it's considered to by many to be the | | | | This type of policy is often geared towards |
| purest form of life insurance. The advantage | | | | high income earners who are looking to defer |
| of Term coverage is that it's very | | | | tax and already have their financial house in |
| inexpensive; the down side is the cost | | | | order. |
| escalates dramatically as you get older. | | | | |
| | | | As for other general advice related to life |
| Whole life insurance provides peace of mind | | | | insurance policies, make sure you check up on |
| by delivering permanent coverage at a | | | | the available riders and benefits, but be |
| guaranteed rate. The downside is these | | | | aware of the fact that many agents will be |
| policies have a much higher initial premium. | | | | trying to get you to pay as much as possible, |
| If you opt for this type of life insurance, | | | | so consider if you REALLY need them. The one |
| decide if you want a participating or | | | | and single most important thing to have in |
| non-participating policy. The first option | | | | mind is to work with an independent broker. |
| provides an annual dividend, which can | | | | Insurance policies vary dramatically from |
| provide an increasing cash value and death | | | | company to company and you really need an |
| benefit while staying in line with inflation. | | | | unbiased opinion.Lorne S. |
| Non participating policies are less expensive | | | | |