There are tons of reasons not to buy whole life policies, especially as an investment. Most financial advisors tell their clients to stay away from whole life and invest their money elsewhere; buy a cheap term policy in the interim as a safety net.
However, did you know that there are reasons not to pay for term life, as well? Here are six scenarios in which you should not buy term life insurance, but put the money to better use:
1) Your company already pays for a term policy.
Term life insurance or permanent life insurance? That is the first question anyone considering life insurance must answer.
First of all, the basic differences:
Term policies are written for a specified number of years, such as 10 year, 15 year, 20 year and 30 years. The policy will terminate after the specified coverage period. A term policy only pays out money upon the death of the insured, at which time the named beneficiary receives the face value of the policy. If the insured outlives their policy, they will want to purchase a new term policy.
Thinking about life insurance for the coming year? Many people are. Most of us want to protect our families and provide money if a sudden accident or illness leaves them without an income.
The very best way to do that is to buy a term life or whole life insurance policy. For most people, this is an easy decision.
However, when it comes to choosing the right company for your life insurance business, the issue becomes more complicated. There are hundreds of insurance companies selling life insurance; how do you know which one is best for your needs?
Here are the ones predicted to be the best life insurance companies in 2012.
Purchasing a life insurance policy can offer you peace of mind in knowing that your loved ones will have the financial security they need if you pass away. Any life insurance provider will tell you that you can buy a whole life insurance policy, a term life insurance policy, or a return of premium term life insurance policy, so what are the differences between these options?
While a whole life insurance policy offers you coverage regardless of when you die, a term life insurance policy offers you coverage if you die during the term, which is the specific period of time outlined in your policy. If you don’t die during the term, your coverage ends and you must either purchase a new policy or in some cases, you can negotiate with the insurer to renew your policy.
The Cost of Smoking
Just how much more do smokers pay for life insurance? Depending on the age and other factors, tobacco-users may pay up to 400 percent more in premiums!
Regular smokers may also have other health problems, like high blood pressure, that can raise premiums even higher. Your health concerns arent considered part of the smoker status; they are charged separately as an additional expense. Depending on your overall health and lifestyle, your premiums could skyrocket.
Lying About Smoking
If youre a tobacco user, you may be tempted to lie on your application in order to obtain lower premiums, but dont give in to that temptation. N
The payment method you choose when purchasing life insurance can have a big impact on the value of your policy. You may choose a lump sum life insurance premium or to make regular premium payments. So which is right for you? Let’s take a closer look.
The Lump Sum Life Insurance Premium
A lump sum life insurance payment plan is also known as single-premium or one-time payment. A lump sum life insurance premium plan can mean a larger death benefit because life insurance companies use your premiums to fund investments that will pay for your death benefits. For a life insurance company, a larger initial cash investment means that they have more money to invest — hence more money to be gained in investments and larger payouts for beneficiaries. T
The Office of Fair Trading (OFT) has provisionally decided to refer the UKs £5 billion private healthcare market to the Competition Commission for further investigation.
The watchdogs key concerns include:
A lack of easily comparable information available to patients, GPs or health insurance providers on the quality and costs of private healthcare services.
Lack of transparency over the full costs of treatment for private patients.
A limited number of significant private healthcare providers and larger health insurance providers, at a national level.
Pockets of particularly high concentration in some local areas where private healthcare providers own the only local hospital or a must have facility.
Most financial experts agree: You need to have life insurance. To help keep costs down, many consumers are turning to shopping for life insurance online. While shopping around to look for the right policy at the right price is a good financial move, you also need to be alert. Scammers are out there, and they are looking to steal your hard-earned money. Follow these tips to avoid fraud, and keep your risks low.
1. Keep an eye out for red flags.
Watch out for a site that immediately demands a social security number. Before giving a company any personal information, run a search online to find out what you can about the company. Cons
Determining your coverage needs is the first step when searching for life insurance online. At Efinancial, we developed a life insurance calculator to help simplify this process. There are several factors to consider when assessing your needs. Before making any decisions or buying online life insurance, be sure to reference our life insurance calculator.
The Efinancial Online Life Insurance Calculator
By simply answering a few simple questions, you will be well on your way to determining your coverage needs and purchasing life insurance online.
Final Expenses: $10,000 is generally a safe estimate when planning for funeral costs. Many people choose to invest in life insurance to cover these expenses alone.
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