Universal Life Insurance

What is the best term life insurance?  That is an interesting question and how do I determine what that means?

I generally think this can be answered through a basic analysis when selecting the carrier you want to work with.  Which carrier will underwrite me the most favorably based upon my specific underwriting situation?  If you have sleep apnea and take medication for a couple of different purposes, then it might be one carrier.  If you have type 2 diabetes it may be a totally different carrier.  Based upon which carrier will underwrite your situation the best, that will determine your underwriting rating and your ultimate premium.  See what offers a Florida life insurance consultant can help with you. 

Another aspect of determining the best term life insurance for you is what is the company’s financial strength.   Generally you want to select a company that has an A rating or better.   This is something you will want to be comfortable as you select the carrier you work with.

When determining the best term you want to look at your short and long term goals and needs with the insurance.  For example, will you only want the term for the term period?  Will you possibly want to convert all or a piece of the term to permanent insurance?  If you will want this as an option then you want to look at what the term carriers offer as conversion options.   Do they have a good whole life option?  Universal Life?  How long do you have to convert it with no proof of insurability?

These questions might help you if you are trying to figure out what the best term life insurance is.  It is going to be specific to your situation and varies per person.

I was sitting at a table in a chilly ballroom in Charlotte, N.C., and had just laid down my dinner fork. The lights dimmed and everyone in the room shuffled their chairs—a few hundred of them—to face the stage. Dinner was over and the presentation was about to begin. Within moments, I was transfixed.

It was my first realLIFEstories award dinner. At the time—almost eight years ago—I was a seasoned journalist, but new to the world of insurance and financial services. I was tasked with writing about the event, but had no idea what was in store for me.

What happened next took the concept of life insurance from the realm of the theoretical into the realm of reality for me. I watched t

Read more…

One of the longest standing arguments in the insurance business is buy term and invest the difference or buy cash value life insurance.

The argument of buying term and investing the difference is based on the premise of getting cheap term and taking the extra money (you would have spent on whole life) and investing it in the market.  The thought is that you can make a higher return with the money in the market than you can inside a life insurance contract.

While the true accumulation value of an investment account can be higher than the accumulation value of the cash value, other factors must be considered.   For example, what if your investment account performs poorly and you actually lose money.   A life insurance policy has certain guarantees built into it that guarantees that you will not lose money no matter what.

Also, a big consideration needs to be from a tax standpoint.  Where will you invest?  What is your tax bracket?  What will the tax bracket be when you want to access the money?  Would it help you to have money that you can access tax-free from the life insurance?  Is the death benefit being passed tax-free going to be a benefit to your estate and family.

Term is a great way to cover your liability at a very reasonable price.  The problem with term is that it only lasts for a period and most people outlive the term and their family never sees a benefit.  Often times a combined approach can be a good one.   In other words, having a majority of the coverage as term and part being whole life or universal life.

While shopping for life insurance you may have come across the term rider. You may have asked, “What is a rider?” Essentially, a rider is an addition to your life insurance policy that alters your policy’s coverage or terms. Riders added to your life insurance coverage usually increase your premium.

There are many different types of riders. Based on your needs, some riders could be beneficial to you and your family. Following are a few of the most common life insurance policy riders available:

• Waiver of Premium. Ever wonder how you would be able to continue paying your life insurance premiums if an accident left you disabled, and you were unable to work?

Read more…

What term life insurance carrier is the best for you?

This is an important question and one that should be looked at before you apply to a carrier for life insurance.

Do you have any special underwriting circumstances?  Medical issues? Dangerous avocations?  Family history? M

Read more…