There is a diversity of life insurance products to fit multiple planning applications like indemnification, income and inheritance scenarios. Term and guaranteed universal insurance are generally indemnification and inheritance products to protect the policy beneficiaries from financial liabilities or benevolent giving of the policy insured. Participating whole life and current assumption universal life are conservative interest rate crediting policies for income scenarios. Other polices for income scenarios are Indexed universal life crediting earnings from indices, both domestic and foreign as well as variable universal life insurance which can credit from the guaranteed interest account or the separate sub accounts utilizing market equities and bond instruments.
Product suitability, from a policy holder point of view, is determined by creating a financial profile that includes establishing product risk tolerance, economic goals and a reasonable timeline of life events based on life expectancy.
The best type of life insurance to buy depends on your needs and income. You can start by using a life insurance calculator found on some websites, to determine what role life insurance could play in your family's financial portfolio.
Most people use Term insurance to cover events over a limited period of time, such as getting your children through college or paying off a mortgage if the breadwinner was to die an untimely death.
For events that have no time limit, such as using life insurance to pay for funereal expenses or to pass an inheritance to your descendants, permanent Life Insurance may be best.
A good agent can help you translate your needs and budget into affordable life insurance coverage that will be best for you and those you are trying to protect.
Principal Agent, First Insurance Agency Inc, United States
There is no such thing as best life insurance to buy. It all depends on your need and your stage in life. If you are in your 20s and 30s then a whole life policy may be appropriate since it tends to be more affordable in this state of your life . In your 40s and 50s a 30 year term may make much sense when a retirement investment is also created to parallel to term life so that if the policy expires in your 70s or 80s, your retirement savings will take care of burial cost in the invent of death. Remember always contact your financial advisor before you act.
One thing to remember about whole life is that your premium goes to two places: Insurance and investment. Lets say you are paying $160 per month for whole life policy. $100 may go towards your insurance and $60 may into an investment account that yields some interest. Let say you purchased a face amount $500,000 and you were aged 30 when you bought it . Forty years latter at age 70 your saving has generated about $400,000 . If you die , your beneficiary will receive the insurance face amount of $500,000 but not the $400,000 in saving/investment account, That amount remains with the insurance company. You can withdraw your $400,000 as a loan while you are alive and has to paid back to the insurance company. If it is not paid then your insurance face amount will be reduced by loan balance upon your death. In short your beneficiary will receive $100,000 upon your death.
Term life insures you only for a fix number of years usually 10,20 or 30 and policy expires or renews at a much higher rate
You may also become un insurable at policy expiration.
Remember to talk to your financial adviser
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Product suitability, from a policy holder point of view, is determined by creating a financial profile that includes establishing product risk tolerance, economic goals and a reasonable timeline of life events based on life expectancy.
Most people use Term insurance to cover events over a limited period of time, such as getting your children through college or paying off a mortgage if the breadwinner was to die an untimely death.
For events that have no time limit, such as using life insurance to pay for funereal expenses or to pass an inheritance to your descendants, permanent Life Insurance may be best.
A good agent can help you translate your needs and budget into affordable life insurance coverage that will be best for you and those you are trying to protect.
One thing to remember about whole life is that your premium goes to two places: Insurance and investment. Lets say you are paying $160 per month for whole life policy. $100 may go towards your insurance and $60 may into an investment account that yields some interest. Let say you purchased a face amount $500,000 and you were aged 30 when you bought it . Forty years latter at age 70 your saving has generated about $400,000 . If you die , your beneficiary will receive the insurance face amount of $500,000 but not the $400,000 in saving/investment account, That amount remains with the insurance company. You can withdraw your $400,000 as a loan while you are alive and has to paid back to the insurance company. If it is not paid then your insurance face amount will be reduced by loan balance upon your death. In short your beneficiary will receive $100,000 upon your death.
Term life insures you only for a fix number of years usually 10,20 or 30 and policy expires or renews at a much higher rate
You may also become un insurable at policy expiration.
Remember to talk to your financial adviser