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Posts Tagged Life Insurance

The Difference Between Term and Whole Life Insurance

Dec 13

Posted by Elizabeth Newberry in Insurance | 2 Comments

Whether you’re simply considering purchasing a life insurance policy, or have already made the decision to purchase a life insurance policy, it’s important that you know the difference between term life insurance and  whole life.  Knowing these differences will help you choose the best insurance policy for you.

The most recognizable difference between term life insurance policies and whole life insurance policies is the fact that a term life insurance policy will cover you for a certain number of years, whereas a whole life insurance policy will cover you for your entire life. If you’re only looking for life insurance coverage for a specific amount of time, a term life insurance is probably your best bet. However, if you wish to be insured for the rest of your life, you should purchase a whole life insurance policy.

Another difference between term life insurance policies and whole life insurance policies is that whole life insurance policies offer a tax-deferred accumulated cash value. This acts as an investment component. Some people are interested in the ability to invest using their life insurance policies, so they choose to purchase a whole life insurance policy. However, if you use other methods of investment, a term life insurance policy is probably the best for you.

A third difference between term life insurance policies and whole life insurance policies is the difference in price. Term life insurance policies are generally cheaper than whole life insurance policies; however, whole life insurance policies often offer fixed annual premiums, so you won’t have to worry about your rates increasing if your health begins to deteriorate. Most term life insurance companies will raise your premiums based on the current condition of your health, as well as your age.

So, when you begin your search for just the right life insurance policy, take these differences into consideration and decide which type of policy is best for you.

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Trusting The Relationship Between Insurance Companies And Their Customers

Dec 12

Posted by Susan Reynolds in Personal Finance | 2 Comments

Obtaining auto insurance quotes online involves supplying personal information. This raises concerns about privacy. Companies conducting business online should have their ‘privacy policy’ online. Privacy policies explain what personal information is used for and describe procedures that keep it private. There should also be a ’security policy’ assuring that internet transmission will be secure.

In order for auto insurance companies to estimate their risk of having to pay claims, they have to know who will be driving the insured auto, each driver’s driving record, where the car is normally kept, the type of car, how the car is used, expected mileage, and types of safety equipment.

Providing auto insurance quotes online is a cost saving method of providing quotes. It gathers a lot more attention from customers than traditional in-person visits or telephone calls. It is in their own best interests to respect the trust the customers place in them by entering their data into the company’s website. In today’s business world, if the companies do not have an online quote system, then they do not have an effective means of attracting new customers.

Online quote systems are how insurance companies get new customers in today’s world. A company simply can’t compete in the marketplace without it. And since most companies want to strive and succeed over the long-term, they protect the information in those online forms with as much paranoia as you could hope for. Your safety as a customer is tied into the company’s own wellbeing.

Even rotating through customers isn’t enough to sustain an insurance company. Not in today’s market! Bad reputations spread quickly online, for one thing. For another, the government is likely to crack down on any company that abuses its position in the industry to the detriment of the general public.

Auto insurance companies only benefit from keeping personal data private. Auto insurance companies sell auto insurance. They are not in any other kind of business. If an auto insurance company has been in business for a while then they are well aware of where their own best interests lie.

If you do business only with good, reputable companies, then you have no reason not to trust them with your information. They would prefer to have you as a new customer more than they would care to sell your info to any sleazy outside parties. It’s okay to relax every once in a while, even in a place like the internet. Sometimes you just have to let go and trust people.

Susan Reynolds is the content coordinator for a leading South African Insurance Provider who specialises in Providing Online Insurance Quote.

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How to Save Big on Life Insurance in Four Easy Steps

Dec 1

Posted by Zorten in Personal Finance | No Comments

The majority of us are not rich. Many people, nowadays, live paycheck to paycheck. Last thing we need is to get taken for an expensive ride by a life insurance salesperson whom is nowadays cleverly hidden behind the title financial advisor. There are laws to protect from the worst of cases, but you can save thousands and more by following these tips:

1. Find out what your current limits are if you have insurance through your employer. On average employers only provide $50,000 coverage if they do at all. This is not enough coverage. As a general rule you should have $250,000 – $500,000.

2. Educate yourself. Just like buying a car, you don’t want to pay full retail price. Everything is negotiable. Look up and compare whole and term life. Do your self a favor and look it up on the internet. You will see a wide range in prices for the same coverages. For instance Ameritas was less than 1/2 the yearly premium of Allstate and Met Life for the same coverages – that means a 50%+ savings every year for the same coverage! That amounts to thousands upon thousands of dollars saved in just a few years. Make sure you pick an A rated carrier that has been around a long time.

3. Do not buy whole life! Know that term is cheaper and a better deal. Whole life is insurance with a slight savings/investing mix. These slick salespeople get their big paydays when you sign up for whole life. Your first years premium and 3-4% thereafter goes to commissions. Therefore, you won’t see much in growth for 15 – 20 years. You would do 10X better with any good mutual fund. Don’t let them fool you with claims that your investments are tax free. Its not – per the IRS its tax deferred, not tax free. And due to the extremely high commissions you won’t ever see much growth. Just look up on the internet and see how many people amassed great wealth with whole life – you will find the answer is zero! What a rip off! Upon calling numerous experts, the only reason to have whole life is if you are 60-65 or above, or if you are extremely wealthy and want to use it to pay your estate taxes when you die. That is it from the worlds leading experts! Suzie Orman will tell you the same – stay away from whole life!

4. If you are going to hire a financial advisor, hire a fee-based financial advisor. They will not push loaded funds and are truly interested in your benefit. They want you to succeed and give them referrals. This is how business should be done! There is only 1 place to go to find the best fee-based financial advisors in the country – The National Association of Personal Financial Advisors (NAPFA) www.napfa.org. You can find a financial advisor near you and they have to have top-notch qualifications. Something you won’t find with flighty, commisioned based advisors. So there you have it. Find out what your coverage is. Get educated – you can never have too much education (whether it be formal or informal). Do not buy whole life! And get a fee-based financial advisor. You will be glad you did!

About the Author
David Maillie is an alumni of Cornell University and holds numerous patents including his recently awarded patent for headlight cleaner and restorer. He can be reached at M.D. Wholesale: http://www.mdwholesale.com and at http://www.bestskinpeel.com

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How to Save Big on Life Insurance in Four Easy Steps

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