If you are contemplating investing your money in life insurance, it would be good to check out the different kinds of insurance available for you. You can check out rates for a term life insurance policy for it is probably the most inexpensive and uncomplicated form of life insurance today. Cheap term life Insurance is readily available; you just have to check for the rates from different companies so that you can get the best deal. Continue reading “The Ins and Outs of Cheap Term Life Insurance”
Life insurance basics state that one should get a life insurance policy as a means of protecting their family, investments and the overall financial stability of those they consider dear to them in the event that an unforeseen incident occurs separating them from their family forever. The last thing anyone wants is to Continue reading “Overview Of Life Insurance Basics”
Life insurance concepts and terms can be confusing! Before you decide to purchase a life insurance policy, you need to understand the definitions of a few basic terms. Below is a short list of the most basic (and most important) life insurance terms you need to be familiar if you are planning on having any sort of conversation with a life insurance agent.
What is the Beneficiary?
The beneficiary is the person who will receive money if the insured dies. For example, if you started a life insurance policy today, you would have to specify who you’d like the money to go to if you pass on. If you are married, you’d most likely choose your spouse to be the beneficiary. The beneficiary of your life insurance policy, however, doesn’t have to be your spouse. It can be a relative or close friend. The important thing is that you as the insured choose the beneficiary.
What is the Death Benefit?
As described in most life insurance policies, the death benefit is the money that your beneficiary will receive if you pass on. When you started your life insurance policy, you were required to attached an amount of money to the policy. This money is termed the death benefit. The death benefit can range from as low as $50,000 all the way up to $5,000,000 and even more! The most common amounts for the death benefit range between $250,000 and $2,000,000.
What is the Term?
The term is the length of time the insurance company is required to honor the policy (as long as you stay current with your payments). Terms can range anywhere from 5 years all the way up to 20 years and longer. The longer the term, the more expensive the insurance will be. Also, the older the insured, the more expensive the insurance will be. Most life insurance policies don’t have a term; term life insurance policies are the only type of life insurance that have an expiration date.
What is Cash Value?
Most life insurance policies have a cash value associated with them. This means if, for whatever reason, an insured needs to cancel the insurance, or possibly allow it to lapse, he or she will receive some money. The reason for this is because whole and universal life insurance policies couple as investment and savings vehicles. They provide a lot more benefit then just insurance against death. Payments for whole and universal policies are much larger than payments for a term life insurance policy, but with whole and universal life insurance, a portion of that money is being invested and saved for you.
What is a Rider?
A rider is a provision or addition added to the policy. Adding children to a life insurance policy is considered a rider. If your children die, you can receive a small amount of money if you added your children as riders onto your policy. Riders don’t have to be children. It is any provision that you choose to add to the policy outlining restrictions or limitations.