The Advantages of Term Life Insurance

There are two main types of life insurance that are available to everyone; there is whole life insurance and term life insurance. Many people are unaware even of the existence of term life insurance, which is a shame because term life insurance is usually much cheaper than the whole life insurance equivalent. If you are a shrewd investor then term life insurance could be just the option you are looking for. It can work out thousands of dollars cheaper every year giving you that extra money to invest yourself. Insurance companies are normally very conservative when investing your money; some people like this while others prefer a more risky but greater return investment opportunity.

Cost.

The obvious advantage of taking a term life insurance policy over a whole life insurance policy is the cost. Often a term life insurance policy will cost you hundreds of dollars a year but a similar whole life insurance policy can cost as much as thousands. In fact, there are some term life insurance policies that will cover you to the value of $100,000 over a ten year term that cost less than ten dollars a month. Obviously, similar factors are taking into consideration when applying for term life insurance as they are when applying for whole life insurance; factors such as health, family history, lifestyle and age.

Flexibility.

Term life insurance offers you a greater level of flexibility over it's whole life insurance counterpart. For less money you are able to take out short 10, 20 or 30 year plans and you are able to determine the exact level of cover that this offers. You may have a 4-year-old son and a partner who has opted to stay at home and look after him. Right now he is dependent on your earning money to feed, clothe and care for him but in twenty years he will have finished school, finished college and hopefully got himself a job. This means he is no longer your dependent and you may not need to make financial allowances for him in your life insurance. Alternatively, your mortgage may expire in ten years. You won't need to pay to cover your mortgage once it has been fully paid up.

Investment.

A term life insurance policy costs you hundreds, even thousands, of dollars a year less than a whole life insurance policy. This means that you can invest your money yourself instead of relying on the insurance company to do so. Insurers are typically very conservative when investing your money, so by taking a term life insurance policy you are able to be a little less strict over the type of investment you choose affording you a greater potential to make more money.

Copyright 2005 Stacey Zimmerman

Stacey Zimmerman is the owner and webmaster of Free Insurance Quotes. His site offers free online insurance quotes for homeowners, auto, life, health, car and long term care insurance. Be sure to visit his site http://www.freeinsurancequotes.us for the latest articles, news and tips on all types of insurance.

Whole Life Verses Term Life Insurance - Who Wins?

Comparing life insurance policies can be confusing, especially if you don't know the difference between the different types of life cover available. The two kinds you will see most often are term life and whole life, so let's compare whole life vs term life insurance.

When you buy term life, you are buying life assurance and nothing else. It is just a basic life assurance policy with no extras. Term life is not an investment. It has no cash value at all - unless you die of course. So if you pay your premiums for years you have nothing to show for it except that many companies will lock your rate for a certain number of years from when you buy the policy, or at least limit the amount of increase.

Whole life is a totally different story. When you buy whole life insurance, you are not just buying insurance. You are buying insurance that is bundled with an investment. In other words, a portion of your premium each month is invested and earns you a cash value on your insurance policy. If you have had a whole life policy for many years, you may be able to cash it out for a significant amount of money.

If you think whole life insurance is a better deal just because it has a cash value, you are sadly mistaken. In fact, it is term life insurance that is usually the better deal. The main reason is that when you buy whole life insurance, you are paying for both the insurance and the investment, but you really only get one or the other.

Take a little time to compare the prices of term life and whole life policies and you will see what I mean. The whole life insurance is significantly more expensive. Most people look at that and think that of course it is more expensive because you are getting more - cash value in addition to the life indemnity.

However, if you read the fine print you will find that if you cash out the whole life policy, you will no longer be able to collect on the insurance and if you die and someone collects the insurance, they cannot get the cash value. In other words, you are paying extra to get two things but you really only get one or the other.

If you buy a term life insurance policy instead, you can take the amount of money you are saving on the insurance and invest it into a mutual fund. That way, you really do have both an investment and an insurance policy. The insurance will cover you if you die, and chances are the mutual fund will be worth more than the cash value of the whole insurance policy if you don't. Plus, if you die while you are still insured, your beneficiary will get both the life assurance and the mutual fund.

When comparing a term life policy to a whole life policy, you need to look at the possible outcomes for each to decide which one is the better deal for your circumstances. I can almost guarantee you that the term insurance policy will come out on top every time.

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Term Life Insurance Vs Whole Life Insurance

Term Life Insurance

Term life insurance is purchased for a certain amount of time, or a term. Many people look for a period of ten to thirty years. In other words, they are seeking to cover their lives for their working years, or the period when a home mortgage is being paid off and children depend upon them. They may feel that after the term of their policy they will have enough money saved to replace their need for life insurance.

When the term is over, the policy has ended. In most cases, that is the end of the relationship between the insurer and the insured. Sometimes an insurance company will offer a permanent or whole life insurance company at a much smaller face value to cover something we call final expenses. However, since the insured person is much older, and may have developed health issues, the premium for this type of whole insurance will be higher for a lower death benefit.

Whole Life Insurance

A whole life policy, as the name implies, will cover an insured person for their whole lives as long as the policy is in force. Most of the time all an insured person needs to do to keep the policy in force is to pay the premiums. Some whole life insurance policies can be "paid up" over a period of years. So with this type of policy, an individual may pay all the premiums over ten to twenty years, and then know that they will have life insurance coverage no matter how long they live.

Whole life insurance policies can build a cash value too, so instead of being "pure insurance", they can also be a savings vehicle. The value of the whole life policy can be cashed in or borrowed against, and can count as an asset for a person.

Term Vs. Whole Life Insurance

So which is better -- term life insurance or whole life insurance? Well, during a person's working years, and those years when many people may depend upon their income, the larger face value for less price on a term policy is attractive. However, that term may expire just when it will be harder for that person to obtain insurance!

I would suggest combining both types of policies to meet both needs. Choose a smaller face value whole life insurance policy to provide lifetime insurance coverage. Then select a term policy that is slightly smaller than the the estimated needs to provide the build of insurance coverage during working years.

How Much Life Insurance Do You Need, and How Much Will It Cost?

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What's the Difference Between Whole and Term Life Insurance?

It's important to know the difference between whole verse life insurance before you start to shop.

Whole life (also called permanent) policies are insurance policies that accrue cash value over time and usually pay dividends. Buying a whole life policy is an investment. As the named insured, you have the ability to draw against the cash value. Whole policies are more flexible and more expensive than term policies.

Term life polices are less expensive and inflexible. Term policies are bought for a designated period of time. If the named insured dies before the policy expires, the benefits are paid. However, if the policy expires before the death of the insured, there are no return premiums. As the insured you have the option to renew the policy for another specified period of time, or let it expire.

The difference between whole life and term policies is similar to the difference in buying verses renting a house. A whole policy would be like buying a house. The purchase of a house is an investment. Usually the house appreciates in value. You can borrow against the growing equity in the house. When you decide to move, you sell the house and reap the financial rewards of the investment.

Renting, on the other hand, is like a term policy. You rent an apartment or house for a specific period of time (lease). You do not have the option to borrow against the equity. When the lease is up, you either renew the lease, or move. If you choose to move, you do not get a portion of the rent back.

Term policies do, however, allow you to upgrade to a permanent policy without the need for a physical exam (similar to renting a house with the option to buy). A change in your financial condition may allow you to afford a whole policy that was out of your financial reach a few years earlier.

View our Recommended Life Insurance Company, a simple site that has an easy to fill out application. It also has a lot of great info about Home Owners Insurance and Health Insurance

Term Life Insurance - Behind the Scenes

'All or nothing' has no place in financial planning.

Listening to the media people and taxi drivers can weaken the foundation for your financial future. Find a trusted adviser and learn from them. Check the qualifications of your sources of information. Well meaning friends and relatives are frequently a better source of myths than they are of facts.

Is term life insurance a better by than whole life, or is that a myth? Unfortunately TV personalities that present themselves as financial experts may not even have a license to give such advice. Recently I heard one (so called financial expert) say "...I HAAAATE (hate) whole life and universal life insurance..." To me such an emphasis on the 'hate' shows that this person doesn't have an open mind. They won't allow themselves to learn the truth because their mind is already made up. This financial guru's attitude is similar to any other prejudice.

Building Your Life Insurance Team

To build a team we must become aware of the strengths and weaknesses of each player. What would it serve a baseball team to position a catcher on the pitching mound? In order to be a winner you need to explore which type(s) insurance will serve your financial needs in the most efficient way. The best place to begin is to learn the proper position for various types of life insurance. Term Life versus Whole Life shouldn't be your concern. The question should be: How can term and whole life work together to save you the most money? Here is a simple way to determine which type to put in place in your plan.

If you won't need life insurance beyond twenty years - buy term. Usually the best prices for term are for ten and twenty year terms. There are other terms being sold but these have the most companies competing for your business. If you only need life insurance for five years it may be a better deal to buy ten year term and cancel it when it is no longer needed. Five year term is frequently more expensive to buy than ten year term. Most companies have discontinued their five year term plans for that reason.

Should you will need the insurance longer than twenty years consider whole life. Whole life will cost you less than term when you look beyond twenty years. There are several choices available after you own whole life for a number of years. You may be able to stop paying for it and still keep it in force in your old age. You can cancel it and get most of your money back, sometime you could even get more back than you paid in. There may be a life long need top pay final expenses or estate taxes.

You'll save the most money by combining these types insurance into one policy. Frequently you can buy a whole life policy for life long needs and add twenty year term for needs that will last about twenty years. You can also add a ten year term for needs that will be out of the picture in the next decade. For example you may only need $100,000 for life, but if you have a young family that will need much more insurance to provide income for 15 or 20 years. Perhaps you have a mortgage that will be partially paid down in ten years and the children will be older then also. You might set up the term riders as $500,000 ten years and $500,000 for twenty years. This way you get cheaper term life insurance as there will not be a policy fee on the term parts of your policy. The twenty year term will insulate you from the increase in premiums you would have experienced in year eleven if it had all been ten year term.

Check out these savings. Compare these actual rates. One man saved about 2/3 of his initial premium by buying term at $278 a year instead of spending $867 for whole life. However, when you consider the increasing cost of the term at each renewal he actually would pay $57,610 more for his term life. here is how it works:

A 40 year old man could buy 100,000 twenty five year term for $278 a year. At age 65 he discovers he still needs insurance so he buys a whole life plan at $3,400 a year for life By age 65 he paid $6,950 If he lives to age 85 he will pay another $68,000. His total cost is about $74,950. Insurance companies have got to love this guy!

That same 40 year old man could buy 100,000 whole life (paid up in 20 years) for $867 a year and he still has $100,000 to age 100 and beyond. Total cost for life $867 X 20 =$17,340. He saves $57,610! WOW!!

An experienced adviser can help. Make sure they have a license to sell life insurance. Agents don't just buy a license to sell life insurance they must study first. These are not snap courses. Many people have to rewrite the exams to qualify. Your licensed life insurance agent is a well educated professional. We'll continue to uncover other 'hidden weaknesses' behind the scenes as we journey through these articles.

Gordon Hughes, Enhanced Lifestyle Planner and Certified Financial Planner. Gordon has over 30 years experience in banking and financial services industry. He shares his awareness of behind the scenes practices that work to the advantage of banks, insurance companies and investment houses, but seldom benefit consumers.

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Term Life Insurance: Is It Right For You?

If you've spent any time at all watching television recently, you've probably seen commercials advertising low-cost life insurance with guaranteed coverage that anyone can afford. And, if you're like many people, those commercials do get you thinking about the fact that you don't have life insurance yet, but you continue to procrastinate. (After all, you're going to live forever, right?) Or, maybe you think you can't afford the premiums or that you won't qualify for the rates advertised because of a medical condition, so you put off checking into your options.
The truth of the matter is that you DO need life insurance, and there really is affordable coverage out there to meet your needs. There are two main types of life insurance, whole life and term life. The less expensive of the two is term life insurance.
What is Whole Term Life Insurance?
When you buy term life insurance, you're purchasing a policy that will provide protection for a certain period of time. A 'death benefit' is paid only if the person insured dies during the term of the coverage. Most insurance companies have set coverage period lengths you can choose from. These coverage periods could be as little as one year at a time, but most often are offered in five or ten-year increments.
As the policyholder, you get to decide who will receive the benefit payment in the event of your death. You should know, though, that some states and insurance companies have requirements concerning who can or must be designated as the beneficiary. For example, certain states require that your spouse be the beneficiary if you're married, and some insurance companies will not allow you to name your pet as the beneficiary (too bad for Fluffy, you won't be setting her up with a golden doghouse and steaks for life!). However, within limits, you can leave the benefit to anyone you like or to your estate to be divided up according to your will.
The biggest downfall of term life insurance is that you have to die before your family gets anything out of it, because the benefit is only payable when the policyholder dies. The policy itself has no cash value, and you can't borrow against it like you can with whole life policies. Another negative aspect of term life insurance is that it becomes more expensive as you get older. And, speaking of age, you don't have the right to continue the policy regardless of your age the way you can with whole life.
You might be familiar with term life as a benefit that employers offer to their employees, but that doesn't mean you can't purchase an individual policy for yourself. On the contrary, many insurance companies offer individual term life coverage. The only trick is to determine what type of term life insurance is best for you.
What Kinds of Term Life Insurance are Available?
There are three different kinds of term life insurance. Each of them has unique aspects that make them the best choice for certain situations. The three types of term life are:
Depreciating Term Life: Depreciating term is used as a means to cover a mortgage loan in the event that someone dies prematurely. The amount of the benefit goes down, or depreciates, as the amount owed on the mortgage is paid off (a slow and painful process...). This is an excellent option if you're concerned about your spouse's ability to pay the mortgage payment after your death. The popularity of these plans has waned because level term life policies are generally cheaper.
Level Term Life: Level term policies are available in increments from five to twenty years. These policies are a good choice for anyone who needs relatively cheap coverage for a longer period of time than just a few years. The cost of the policy will be a bit more expensive than annual renewable policies for the first few years, but will then stay level for the term of the policy. Most insurance companies offer policies that once issued, premiums remain level regardless of the insured's health status.
Annual Renewable Life: Annual renewable life policies must be renewed every year, but they're a good, inexpensive option if you just need a few years worth of coverage to cover a short-term expense, such as college tuition for a child (which is only slightly less painful than paying the mortgage!).
Who Should Purchase Term Life Insurance?
Term life insurance is an excellent option for anyone who simply cannot afford the higher premiums required by whole life insurance.
One popular use of term life is to help young families to cover expenses if one of the parents passes away. Couples who are just starting out and have young children may be unable to afford expensive whole life policies, but it's not wise to leave one spouse without a means of covering financial burdens if the other should die--especially in today's two-income world. The benefit can help the spouse to pay the mortgage or care for the children on his or her own.
Another good reason to purchase term life is to cover your business debts. If you're the owner of a small business and have taken out a business loan, you may want to consider purchasing a term life policy to pay that loan in case you die.
What Options Should You Look For?
Just like the car sitting in your driveway, life insurance policies come with options (and just like the options in your car, these options may raise the price of the policy). Term life options that may be available include:
Conversion: This option allows you to convert the term life policy to a whole life policy at the end of the policy's term.
Automatic Renewal: Some companies offer an automatic renewal of the policy without requiring a medical examination.
Premium Waiver: Your insurance company may allow you to waive, or not pay, the premiums if you become disabled. The policy remains in effect just as if you were paying timely premiums.
Accidental Death Coverage: If your death is the result of an accident, the benefit paid increases, and may even double.
Regardless of your situation, there is a life insurance coverage out there for you. Take the time to request quotes and speak with insurance professionals who will be able to answer your questions. The time you spend finding a policy that meets your needs could save someone you love a lot of hassle and worry when you die.



Gary Stuart launched his career in insurance in the mid eighties. With only a telephone book and a pen and pad, he began building his agency one 'cold call' at a time. His specialties were group health, disability, whole life, term life insurance and more. At the start of the new millennium, Gary translated his years of experience into developing a web site that explores nearly every aspect of health and life insurance. Gary recognizes the importance of educating his customers before they make that all important insurance purchase. You can visit his site anytime at: http://www.accuterm.com

Term Life Insurance: The Differences Between Term and Whole Life Policies

Life Insurance quite generally is a policy whereby you pay a company a premium so that if you die while covered your descendents receive financial benefits. Within the larger Life Insurance window there exist two broad categories of policies, Term and Whole life (Whole Life is also known by the equivalent term Universal Life Insurance). Term Life is exactly what its name implies, valid only for a certain period of time, whereas Whole life lasts the duration of one's life.
Price Differences
Because Term Life has a structured beginning and end, typically from 1 to 30 years, it is normally quite a bit cheaper than Whole Life. That is because under Whole Life it is assured that the insurer will eventually pay out (as we all eventually die). Under Term Life, however, there is a very good chance that you will live through the period of the policy and thus the insurance company can simply take your premiums without ever having to pay out anything.
Benefits Differences
Another important distinction between Term and Whole Life is the fact that at the end of the Term Policy, the policyholder is left with nothing but his own health. On the other hand, with a Whole Life Policy the insurer often takes a portion of the premium and places it into a savings account for the policyholder. In case of emergency later in life, the Whole Life Policy Holder can access that money to meet some needs while still living. As you can imagine, the Insurance Company raises the price they charge for access to all of this.
Deciding Between the Two
So, how does one decide between Term and Whole Life Insurance? To best answer that question it is important to ask why you need the insurance in the first place. Is it because you have young children and a spouse who does not have the earning potential to get your children through college? Or is it because you work in a dangerous industry and will regularly face the prospect of death over the next few years? These are both excellent candidates for Term Life Insurance. In the first case, it is important that the provider ensure enough financial support for approximately 10 years and then the need drops off, while the second example may require a shorter 3 - 5 year Term Life Policy.
On the other hand, let's imagine that you have a mentally handicapped person you will support indefinitely, or a spouse that has never worked at all. These may be better candidates for Whole Life as the financial need they feel responsible for extends not only to some definite period in the future, but as long as the other person is alive. Under these circumstances, paying the premium for Whole Life might be worthwhile.
Term and Whole Life Insurance fill an important void in many lives by providing some assurance that in case of an accident, loved ones will not be left stranded. It is important to remember, however, that the policies are not panaceas. The savings rate on Whole Life Policies is usually dismal compared to open market rates, and with Term, you are making payments on a product you may never use. Ultimately, the decision to purchase either of these products should involve weighing your personal risk and health, your current and expected financial situation, and alternative uses for funds you have earmarked for a policy.

Why Is Term Life Insurance More Affordable Than Whole Life Insurance?

The two main types of life insurance-term life and whole life-are certainly at different levels. Term insurance is, as its name implies, only carried for a period of time (a "term") prior to expiration. But a lot of people wonder why term life is so much cheaper than whole life (once they're made aware of its existence, that is). Because of that lower cost, people wonder if it's even worth purchasing.

That's because they don't understand why term life insurance is so much cheaper.

Basically, there are two main reasons that term life insurance is cheaper than whole life insurance. Below is a brief exploration of those reasons.

Term Insurance is Not an Investment

Whole life builds up a savings and investments over time - so in addition to the death benefit, there has been an investment and savings component as well, meaning that the insured can use that money for other things (such as paying part of the premiums over time).

But with term insurance, there is no investment portion - the plan is very simple - pay premiums and gets a death benefit if the insured dies prior to expiration of the policy term. However, if the term expires and the person passes away after that term, there is no payout. In most cases, the policy must be converted to either a whole life policy, or renewed at higher premiums for another term.

It's better to think of term life insurance as a service provided rather than an investment-far more similar to insuring a car than anything else. Some (very few) policies do allow a partial payment of premiums that were paid in over the term, but most allow the policy to lapse or be converted.

This is one major reason that term life insurance is more affordable than whole life-the insurer has less involvement, and, less risk.

Lower Risks with Term Life

The shortest terms are going to be the least expensive, because the risk involved for the insurer is far less than with a long term or whole life policy. In other words, a person who purchases a 5 or 10 year term insurance policy will be at a lower risk to pass away than a person who purchases a very long term policy or a permanent policy. Whenever the insurer has a greater likelihood of having to pay out, the higher the premiums will be, in order to protect the insurer's interests.

Additionally, the risks involved with carrying an investment and savings component drive up the costs of whole life policies as there are more costs on the part of the insurers-and, when there are more tasks to complete, the greater the cost-which is passed on to the insured.

Essentially, term life insurance tends to be less expensive than whole life insurance due to its simplicity. It does not carry the investment risks and payouts of a whole life policy, but provides for a beneficiary or beneficiaries should the need arise.

Damiso Lockhart writes for My Insurance Expert, which will help you find term life insurance that fits all of your individual needs. The world of life insurance doesn't have to be difficult. Damiso is helping to clarify these difficult topics in laymen terms.

Whole Life Insurance Comparisons - Term Life Insurance vs Whole Life Insurance

Although we all want to save money, the cheapest life insurance policy is not always the best option. A few dollars a month now in your life insurance premium can create a mess of red tape when your loved ones are trying to collect on a policy after you have passed.
There are multiple types of life insurance policies out there, but most well known are term life insurance policies and whole life insurance policies. Most people think that whole life is the best alternative, but there is value to both types at different phases of your life. A wise financial planner would recommend that you have a combination of both whole life insurance and term life insurance, especially in early phases of your life. So what is the difference between term life insurance and whole life insurance?
Term life insurance is a policy that is set for a fixed term of your life (i.e. 10 year term, or 20 year term). During this time you have a guaranteed premium that is fixed and will not change. Term life insurance is typically cheaper, especially if you are young. This is because life insurance companies know that if you are 25 and have a 20 year term life insurance policy, the probability that you will die during that term is small. They stand to cash in all of the premiums without paying out a dime. Term life is a good option when you are young and have others who depend on you if you can not afford the expense of a whole life policy.
Whole life insurance, in comparison, is a policy that will remain through out the rest of your life, whether you die at 30 or 80 (most still have an end date at 95 or thereabout). The premiums for whole life insurance is typically much higher because the life insurance company knows that the only way they will not pay is in the event that you (1) stop paying or cancel the policy or (2) live beyond the end date (around 95). Additionally, whole life insurance will gain a cash value over time. As you pay your premium each month a portion goes into a cash account, which is invested to get a return (typically between 4-6%).
Although there are many advantages to both types of policies, the main advantages to a whole life insurance policy is that you can lock in a fixed premium for life and you can gain a cash value to increase the return. Term life is cheap when you are 25, but after your 20 year term (for example) you are now 45. Getting a new term life policy will be significantly more expensive than a whole life policy would have been if purchased at 25 or 30. Getting into a whole life insurance policy at a young age gives you the ability to fix the rate for life, which is very valuable considering the odds that you will see your health decline with age. Additionally, it is important to remember that a portion of the premium you pay is getting contributed to a cash account which will increase in value.
Given an understanding of these two types of policies, you must make a decision regarding the best fit for your life's current circumstances. If you decide on whole life insurance comparison are invaluable. It is important that you obtain 3-5 quotes not only to get multiple rates and try to save a few bucks, but most importantly make sure that you have chosen the best policy. Some important considerations for your whole life insurance comparisons are:
1. How well is the company rated? In other words is there any risk that they will not have the financial ability to pay the death benefit? To check this out visit the website for AM Best. I recommend no less than a "B" rated company.
2. How will the company invest your cash account? Will you have any control over the investment options?
3. What fees are associated with the policy? There are sometime death benefit fees, fees if you take a loan against the policy. Understand the fee schedule.
4. When is the final age of payout? Is there a limit if you live to be 105?

NO Exam Term Life Insurance Vs No Exam Whole Life Insurance

So you entered keyword no exam life insurance and now you are being offered a large number of choices. 10 year term life, 15, 20 30 or even 40 years. Convertible term, not convertible term... We have found that, the most popular, no exam term life insurance plan, is the 10 year term plan (most likely because it quotes the lowest). Be careful with the no exam term life insurance plans as they may not be convertible and once the term is over...well..it is over!

With no exam term life insurance, the most popular, the number one reason it is selected is rate. It is by far the cheapest type of no exam plan. It allows you to secure more coverage for less and thus, for at least a term period, may allow you to get the face amount that you need at an affordable rate. It is also perfect if all you need is coverage for a set period of time. Thus not wasting money on higher premiums with other plan types.
If no exam term life insurance is so popular then who goes for no exam whole life? Three basic groups. People who decide that they do not want to face very high premiums at the the end of a term plan (10, 15, 20 or 30 years or 40) and older people (seniors an the elderly) who just cannot get term life insurance unless they do an exam. The last group of people who select no exam whole life insurance are individuals who have or have had more serious health issues. Believe it or not, it is easier to get medically qualified for no exam whole life insurance than term life insurance. Reasons are pretty involved and beyond the goal of this article.
If you do select to go with no exam term, we strongly suggest that you make sure that the plan is convertible to whole life. Convertible simply means that if you later decide that you need whole life you will be able to easily switch or at least without needing to answer medical questions. We have found that there is a fairly high degree of regret amongst people who selected term but never cared to or know to check that the plan was convertible.

To recap, who should select what? Well, if all you need is short term coverage the term is the best. Or if you need a lot of coverage and cannot afford a whole life plan. If you need long term coverage or you cannot qualify for term because of age or medical history then whole life is the best choice. Please keep in mind that the amount of no exam whole life, as of this article writing, is much more limited than term. If you combine companies, you can probably secure up to $1,600,000 in term as opposed to maybe $400,000 in whole life.
As always, please ask a lot of questions and carefully review your approved policy. Be well.

Philippe Deray - About the Author: Philippe Deray is President and CEO of MCD Financial Services and MCD Life. Our web site address is http://www.mcdlife.com
Company Profile - MCD Life is a successful, dynamic company built on the principal of serving our customers FIRST!.
Our Focus: - No exam life insurance! We offer a variety of exam term insurance and no exam no exam whole life plans from top rated insurance companies. We are able to offer large amounts of coverage by carefully combining insurance company products.
Insurance for People with Bad Health Issues - With many years of experience in the insurance business, we have developed proprietary methods to help individuals with not so perfect health history, get affordable insurance. We offer term insurance, whole life and universal life insurance. We will make this process as simple as possible and get you an answer as fast as possible.

Whole And Term Life Insurance - Should You Combine These Two Policies?

Some experts recommend that you buy a combination of both whole and term life insurance policies. Is this sound advice? If not, why is it wrong? If it is, why is it and who is it right for? We'll look at this in this article...

Before we go further, I'll like to ensure all my readers understand the difference between these two life insurance policy types: Whole life gives you coverage for your entire life provided you do NOT refuse to pay your premiums. It gives you cash value. You can borrow from it. You can also decide to cash in your policy before it due time. It has very many advantages. However, it's also very expensive.

Term life, on the other hand, covers you only for a specified term (from one year to 30 years), hence the name. It does NOT build cash value. It just gives you plain insurance for the period chosen. If you outlive the term, your beneficiaries get nothing. If you pass on within the chosen term, the get paid the coverage amount you bout. Because of its very limited features, it gives much more coverage for each premium dollar paid.

Now that we've got these cleared up, let's get into the meat of the discussion...

First and foremost I'll like to point out that there is sense in this advice. However, you'll have to look at the arguments for this and then decide if it's best for your peculiar circumstance.

Experts who recommend this combination suggest that you buy a whole life insurance policy early in life. You'll generally get the best rates in your younger years. However, they advise that you buy enough coverage for your general concerns. Furthermore, you'll be able to build cash value. This particular policy, they advise, should not cater for periods in your life that you need a lot more coverage.

It is for the periods of peak activity that they recommend that you buy a term life policy. These periods include when you start raising kids, have outstanding mortgage, are exposed to many hazards in your place of work and other situations like these.

They argue that since these periods won't last through your lifetime you should buy a whole life policy for such periods since they are for a lifetime and therefore a lot more expensive (Your kids will one day leave your home and be able to fend for themselves. Then they won't need you to get them life insurance coverage).

Term life, which is a lot cheaper and for a specified period, will help you buy much more coverage for a lot less. All you have to do is to buy a policy that has a term long enough to cover such a period of much life insurance coverage need.

Let's assume that you have young kids and still have outstanding mortgage. Let's say you project it will cost a total of $1 million to put them through college of your dream, help them get started in life and help your spouse maintain them at the level of comfort they are used. Let's also assume that you have an outstanding mortgage of $500K that will take the next 25 years to pay off.

All you'll have to do is get a term life policy for $1.5 million for a 25 year term. At the end of this time there won't be any mortgage to pay and your kids should now be fending for themselves.

If you live beyond the term, you won't need that level of coverage and you can make do with your whole life policy alone. But if you do need it, your family will get a lot more benefits to take them through the tough times.

Do the smart thing. Do thorough comparison shopping. That is, get and compare quotes from a very wide range of insurers. Hopefully, the total you'll pay for this combination will be much less than you thought.

Here are great pages for life insurance quotes...

InsureMe Life Insurance Quotes

Life Insurance Quotes

Chimezirim Odimba writes on insurance.

Whole Life Insurance Vs Term Life Insurance - Tough Decision For People

Life is a precious asset and needs to be safeguarded the most. Apart from money, home and business, what needs the foremost attention is the human life. The busy life schedules and many other complexities are making it tough for the people to take care of themselves as well as their families. Under such stressed conditions of life, one thing to help the best is getting life insurance. Whole life insurance vs. term life insurance is one major query irritating minds.
Whole Life Insurance vs. Term Life Insurance
Which one to opt, when both of these have multiple advantages and each of them has its own disadvantages? This is a serious question raised by most of the people who want to acquire a life insurance policy. To ease this task, it is best to clearly understand the fundamentals of both the options separately. A whole life insurance is the one that can be taken as permanent insurance and which would give services on death of the entitled person.
Unlike the former type, term insurance is never for lifetime and is not permanent. Term insurance means to make an investment into a policy for a limited period of time and the amount of payment and premium to be paid is also fixed. However, both these options may vary depending on the schemes of the organization.
Comparing Whole and Term Life Insurance Covers
A simple comparison between Whole Life vs. Term Insurance will make it easier for the people to decide which one they should opt for.
Whole life policy will surely have cash value, but in case of term life there is no cash value, especially if the person is alive till the expiry of the insurance. In whole life option, cash value for the invested fund can be taken at any time, if required by the person, but this cannot be done with term life.
When taking off the expenses, then surly term life will cost less, due to the fact that it is going to be used for limited period. Other kind of scheme might cost more, but involves more benefits. Since it is for the entire life, then one need not worry about making the investment again and again.
Term life will give the facility to choose the amount and time of the insurance, while other has no such facility, but is sure shot to give a cash-value.
Though the interest rates in whole life are higher and fixed, but in case of term insurance the interest rates keep on fluctuating. It is therefore possible that at one time, individual may be paying less and next time he will require paying more.
Whole life insurance vs. term insurance, the former allows borrowing money and also will enable to surrender, while the later have no such benefits.

Term Life Insurance Policies Versus Whole Life Insurance Policies

Life insurance is a necessity that most people understand. But what they often don't understand is the differences between term life insurance and whole life insurance.
There are three main differences between a term life insurance policy and a whole life insurance policy.
Insurance Difference #1
Value. Whole life and term life insurance both offer coverage as long as the policy is in effect. Meaning that as long as payments are being made both policies offer a pay out in the event of the policy holder passing away. But the main difference is that the only benefit to keeping the term life policy in effect is its death benefit payout.
A whole life insurance policy also builds a cash value, which can be withdrawn by taking a loan from the insurance company.
A term life insurance policy has no cash build up value.
Insurance Difference #2
Cost. Because a whole life insurance policy has a cash value feature it is more expensive. The extra expenses go towards the investment aspect of the policy, and towards the cost of managing the funds. Traditionally insurance companies also pay out higher commissions to agents that sell whole life insurance policies.
On the other hand, a term life insurance policy only offers one benefit. And that is the pay out that the designated beneficiary receives. Because of this a term life insurance can be ten times cheaper than a whole life insurance policy.
Most people who are simply looking for life insurance coverage tend to opt for term life insurance because it is simply cheaper.
Insurance Difference #3
Medical check up requirements. Whole life insurance issuers require that applicants under go a full medical evaluation to determine their health status. This can be a time consuming and cumbersome process for some. On the other hand, there are term life insurance companies that do not require a medical check up.



Donny Lowy manages http://www.americanlifedirectonline.com an online term life insurance portal.

Should I Buy Whole Life Insurance Or Term Life Insurance?

Both whole and term life insurance policies are beneficial for consumers. Proper financial planning for most individuals and families will include life insurance in order to provide guarantees for the beneficiaries. In most cases, term life will provide the needed liquidity in times of need, but whole life will also provide needed benefits in certain situations.
Term Life Insurance
Term life has quite a few advantages and the most obvious is cost. Families can purchase policies with large face amounts for pennies on the dollar. These benefits will provide loved ones with funds to pay for mortgage expenses, raising children, tuition, debt, and everyday living expenses.
Term life literally buys time. Policies are usually purchased to cover a 20 or 30 year term. Conceivably, after this term has expired, the insured would have less debt, children would be young adults, and the family would be stronger financially overall.
However, term life will eventually expire and is quite expensive to convert to whole life. Should there still be a need for insurance after the end of the term, then the proposed insured would pay much more for a similar policy. Life policies are always much less expensive when for the young and healthy. If the insured has very poor health, then he or she may no longer qualify medically for life insurance.
Whole Life
Whole life is advantageous as it provides benefits for the entire life of the insured. Consumers need not worry about their future insurability as long as they pay their premiums. And a well structured whole life policy will eventually be a paid up life policy. Premiums will no longer be due and the interest earned will pay for the cost of insurance itself.
Consumers can borrow against their whole life policies and use the cash value in times of need. In this way, whole life plans are much more like an investment than term life. Additionally, the internal cash value can always be used to fund a single premium paid up policy. The face amount would be less, but premiums would no longer be charged by the insurer.
Whole life plans work very well to provide for known future obligations like estate and inheritance taxes. Life insurance can be setup outside of the estate and provide needed liquidity for tax, business, and personal obligations. Smaller final expense policies are always funded by whole life insurance.
However, these polices can be expensive and if they are not properly funded in the present or the future, then they can become a financial burden. In some cases, a whole life policy could lapse and become worthless to the owner and the beneficiary if premiums are underestimated or simply ignored.
In all, both whole and term life have a place in any financial plan. It is wise to discuss present and future needs with an agent and to perform a life insurance needs analysis. With proper planning, consumers will have peace of mind knowing that their obligations will be accounted for.



A.M. Hyers has been working in the insurance and investment industry for over twelve years. He owns and operates Hyers and Associates, Inc. an independent insurance agency doing business in Arizona, California, Florida, Georgia, Illinois, Indiana, Missouri, Ohio and Pennsylvania, Tennessee.
His agency offers insurance products in the individual, family, and small business group marketplace. They use the leading national insurance carriers to quote health insurance, health savings accounts, dental, and vision plans.
Other lines of insurance offered include life insurance, disability insurance, and long term care insurance. They use several carriers to quote Medicare supplement plans and Medicare Part D coverage for seniors. Additionally, the independent agents of Hyers and Associates Inc. offer fixed, indexed, and immediate annuity policies for individual and group retirement plans.

Understanding Convertible Term Life Insurance

Whole Term life insurance has several options that could prove to be beneficial and it's worth considering each option before making a final decision. Your term life insurance choices include:
Guaranteed level term life insurance is the most popular type of insurance because you can purchase high coverage for extremely affordable premiums. These policies are designed so that premiums remain level for a period of 10, 15, 20, 25 or even 30 years. Check out affordable term life insurance quotes online for more information on this type of policy.
Return of Premiums (ROP) guarantees that the policyholder will receive a refund of all premiums paid at the end of the term period, without interest, should the policyholder outlive the policy.
Renewable term insurance gives the policyholder the right to renew his/her policy at the end of the term period without having to prove insurability.
In addition to these variations in term life policies, there are other benefits such as a waiver option or convertible options that are extremely important to consider and could you save a fortune in the future. In this article, we'll look into the details of convertible term life insurance.
Convertible term life insurance
A convertible option allows the term life policyholder to switch to a whole life policy at the end of the term period without having to prove insurability. There are several advantages to convert:
Keeps your option for whole life open. Most of us are not able to accurately assess our financial futures especially with so many changing variables such as job insecurities, market fluctuations, unexpected expenses. At the end of your term period, you may find that your need for life insurance is ongoing. You can keep your options open with a convertible term life insurance policy. At the end of the term period, you can easily make the switch without ever being in a position where you are left uninsured.
You can upgrade from term to whole life without having to prove insurability. With a convertible option, life insurance companies give you the option to convert to whole life without having to go through a medical examination. If your health has deteriorated over the years or you have developed a life-threatening disease, a convertible term life policy will ensure you are not denied coverage, no matter how poor your health is.
You can begin with cheap term insurance rates. With a convertible term option you can enjoy the advantage of cheap insurance rates in the initial years. At the end of your term period, your financial position may be more stable and switching your coverage from term to whole life will be easier to do.
It's optional. The convertibility privilege is not mandatory and the policyholder has the right to decide whether he wants to continue with term life insurance, switch to whole life or terminate the policy at the end of the term period.
Here's how this type of term insurance works:
The convertible option is not offered with all types of insurance policies so make sure you ask for it. As long as premiums have been paid, and terms and conditions in the contract have been met, the insurance company is bound to convert your policy without having to prove any kind of insurability.
You continue to pay traditional insurance rates until such time when you feel you want to make the switch and use your convertibility privilege. Most companies will stipulate a limited age within which you can opt for conversion. Your insurance rates will then be calculated on the basis of your age and gender at the time of conversion. With whole life, these rates will remain steady your entire life. As long as you make premium payments you will remain insured until your death which means your beneficiary will have lifelong protection. The benefits of a whole life insurance include:
Lifelong insurance coverage

Premiums will never increase

Your policy will accrue cash value.

You can borrow against your whole life policy

After the policy accrues cash value, you never have to pay premiums out of your own pocket. You can use the interest generated in the policy to pay your premiums.
Buying Convertible Term Life Insurance
The best time to buy the convertible insurance is when you're under 40 and have young children. You can pay cheap term insurance rates when your children are young and then convert to whole life to ensure your wife and kids are well-protected financially.
Check out aggregator websites for insurance quote to suit your needs. Insurance rates differ from company to company. You can find the best value for yourself by comparing insurance quotes from different companies. Make sure you understand the terms and conditions of the policy before making a final decision.



About AccuQuote:
AccuQuote is a leader in providing free life insurance quotes to people across the United States. In 1986 it began operating with a single goal: to make the process of buying term life insurance as easy as possible for its customers. Their experienced professionals consistently deliver the most affordable term life insurance rates by comparing thousands of life insurance policies from dozens of top-rated carriers.

Why to Choose Term Life Insurance

By far, the most efficient way to obtain life insurance is through a term life

insurance policy. Some financial advisors insist that their clients use whole life

insurance rather than term life insurance. I am going to show you why they are

wrong.

The three primary reasons they give for recommending whole life are: 1) whole life

insurance lasts the period of your entire life so you don't have to worry about

renewal or possible health downturns that could increase your life insurance rates

on term renewal; 2) whole life insurance can be used as a retirement investment; 3)

if you should decide you want to have life insurance for your surviving family, whole

life insurance will provide that extra net of security.

These reasons miss some very important facts about the whole life insurance vs. term life insurance [http://www.1termlifeinsurance.org] debate. First of all, if

you are concerned about possible downturns in

your health, then you can be sure to choose a term life product that extends until

the time when you will no longer have dependents for whom to provide security. It

is not as tenuous a matter as these whole life insurance proponents would suggest.

Problem solved.

Secondly, a whole life insurance policy has a poor return on investment. If you are

interested in retirement planning, as everyone should be, then term life insurance is

the most effective type of life insurance. This is because it does not pretend to be

an investment vehicle the way that whole life insurance does. Term life insurance is

up to four times less expensive than whole life insurance. The money that you save

on the insurance premiums can then be invested in a stock or other investment that

will provide a much higher return on investment. Get a term life insurance quote

and see the truth of what I'm saying here.

As for the third reason, realistically this will not likely be an issue for most folks.

Most of us are only interested in a life insurance product that makes up for our lost

income should we die while dependents are still at home. For those few who have a

different objective, there are far better ways to purchase security for your family in

your old age. This is because the security purchased in a whole life insurance policy

comes at too high a price. If you want to make sure that your family has some form

of death insurance for you after you retire, there are cheaper ways to provide it.

At this point it should be clear that the most cost effective form of life insurance is

term life insurance. Whole life insurance just pads the premium price for the sake of

a segment of your life during which you won't be needing life insurance. On the

other hand, term life covers the period for which the life insurance product is

appropriate, while leaving savings and investments to better suited products. As if

you needed more confirmation, even the federal trades commission recommends

term life insurance as a good way to save money.

[http://www.ftc.gov/bcp/conline/pubs/general/66ways.htm#lifeinsure]

3 Areas to Consider When Choosing Between Whole and Term Life Insurance Policies

Are you confused about which type of life insurance is best for your family's needs? When weighing your options for these plans, there are benefits as well as disadvantages to each of the four types of insurance (whole life, term, universal life and variable universal life). When selecting a policy, be sure to consider your budget, your insurance proceeds goal and your overall financial picture.
There are options to consider when looking at a whole life insurance quote that might be of some benefit depending on your situation. Likewise, inexpensive term life insurance has several types that could be of more benefit to you specifically. The following are some considerations when looking at both of these alternatives:
Do you want a bargain? As soon as you look at the quotes you will be able to see that whole life is more expensive than term life policies when placing similar policies side by side. But your definition of "bargain" could depend on your specific policy needs. If you wish to include an investment option in your insurance plan as well as provide some tax benefits, whole life could be considered a better bargain for you. If you really want to get the most insurance dollars for your money, then term life would probably be a more likely choice for you.
How about the perks? Some people consider whole life as the best choice because of the additional investment options that are made available through whole life plans. Because whole life builds value over time, you can borrow against it. You can also set up many different investment options with the various funds that the policy provider makes available. You can pay your whole life insurance at a set rate for the entire period of the policy, or you can work on variable rates depending on your investment options or time periods. Term Life does not offer investment choices, but there are additional features to consider such as accidental death or long term care that can be combined into your policy.
Should your children be a factor? As soon as you have children it is wise to update or begin your life policy with their livelihood in mind. Whole life and term life both have good options to make sure your children are taken care of in the event of your death. As children get older, it is important to look at choices for them. Some people like to start a whole life policy for their children. This provides an investment option as well as an insurance policy lumped into one plan that can be considered a valuable gift for your child. Others prefer to stick to a basic term life policy for their children when they get to high school or college.
Consider your unique situation carefully when looking at inexpensive term life insurance and whole life insurance online quotes. Both options can provide the benefits that you need.



To learn more about the various types of life insurance plans and to quickly compare inexpensive term life insurance and whole life insurance online quote s from top carriers, visit Life-Insurance-Quoter.com.

Benefits of Whole Term Life Insurance

Whole term life insurance has suffered a set back these days because of the growing trend of individuals opting for short-term everyday living insurance cover. People today tend to pay for term life insurance mainly because its cheaper than Whole term life insurance. Even though a sound phrase insurance plan can get care of most individuals insurance plan wants.

one major benefit of your whole term life insurance is how the death benefit in such a circumstance is assured to remain level for the overall period in the plan. On giving that some thought you would soon realize that it means it lasts an overall lifetime. That is a single guarantee that has to become taken seriously. An additional gain is that the premium of the full term living insurance policy is guaranteed to certainly not undergo increase. Also one more feature that can not be set aside is this kind of plan can by no means be struck off from the insurance plan company.

A term life insurance [http://www.budayalife.com/61/whole-term-life-insurance] also has money values and that money is accessible for you to make use of in situation you should need it, at any point of time. You've the option to surrender your policy and receive the income that the plan has accumulated.
You also can opt to have the cash in a loan form and still keep your plan intact. The accumulating money values of the policy are tax-deferred. This signifies that whilst simultaneously your money is accumulating interest you don't need to pay any taxes on the interest. Your borrowing of income is also on a tax-free basis. Only whenever you withdraw the money do you pay out tax. w

Whole Life Insurance - Whole vs Term Life Insurance

What type of insurance might fit you the best? Whole life insurance or term life insurance? Let us do a life insurance comparison between the two according to a few general criteria.
What is the difference between whole and term life coverage?
Whole life cover consists of life cover plus an investment on which you can earn interest. Term insurance covers the policyholder for the length of the policy and has no investment attached to it. Both will pay out a certain amount of money in the event of your death to your family members.
How much can you pay?
You should look at your financial budget, calculate how much you are able or willing to pay for a policy and then do a life insurance comparison. A whole life policy is much more expensive than term life coverage. This is because it combines a term cover with an investment component. You therefore pay part of your premium for coverage and the other part for the investment that earns interest. Term life cover costs less than whole life assurance since the premium you pay is for life assurance only. You are able to choose between two types of term cover premiums which can influence the initial costs: annual renewable or level term. A Level term premium stays the same for the duration of the policy. Annual renewable premiums might increase every year for the policy's duration.
What is your age?
Your age is might influence your policy choices. A person older than 50 will generally have to pay greater premiums for a term life policy. Also, if you are 65 and older, you may struggle to find an insurance company that is willing to sell you term assurance. Therefore, you may have no alternative but to buy whole life assurance. If you live longer than the duration of the term assurance policy, no money will be paid out to you. If this happens with your whole life insurance policy, you will still have the investment portion left. You may then borrow money against the investment or take the cash value amount.
How long do you want to keep the policy?
The cash value of a policy is the amount of money you could be paid should you decide to cancel your policy. If you think that you may have to cancel your policy sometime in the future before it's duration is completed, this might have an effect on the type of assurance you could buy. You could consider a whole life insurance policy if you are determined to pay the premiums for at least 20 to 30 years. This will usually ensure that you receive a worthwhile return. A Term life cover policy may be a better option if you are going to keep it for shorter than 20 years. The answer to your life cover needs is a personal and financial one that should be considered carefully before making a decision. That concludes this short life insurance comparison.



Life insurance comparison tip:

Making a choice between whole life insurance and term life insurance means that you should compare what each policy provide and then decide which one is the best for you.

Finding Cheap Whole Term Life Insurance

Whole Life insurance is a tricky game, and finding the type of coverage you actually need seems impossible at the start. For many of those looking for insurance who choose whole, term life insurance might be the better option. It could even be the better way around. It's best to put some real time towards researching the subject and any terms you are not familiar with to make sure you don't end up with coverage or a policy that does not fit what you really need, even if you think it is at the time of purchase.

The trick to term insurance is determining which type you need, and then seeking it out specifically. You're not going to get the best possible premiums if you search for generalizations. Specialized searches and inquiries are going to be key in finding whole, term life insurance rates that are reasonable.

But which is for you? Whole? Or term life insurance? A general and simple rule is as follows: If you need high-benefit coverage that lasts indefinitely until you pass away, go with whole. If you only need life insurance coverage for a few years, a term policy is going to cost you less and will serve the same purpose as a whole policy.

You can find good quotes online, despite what others may believe. However; you must not fall for the first sight of 'free' or 'cheap' that you see. If an offer on rates seems too good, then chances are it is. Shopping wisely and taking a look at several sites is going to help you out, possibly more than you'd know unless you shopped around.
If you're not comfortable with putting your personal information out online, the old way of visiting an insurance agent can also land you fantastic rates. But again, shopping around is the key and possibly jumping between insurance agents can yield very good results as well.
Reasonably priced whole, term life insurance is not as difficult to find as it may seem though it is not easy either. Anything worth having is worth trying for, and taking a passive stance on getting you or your family members life insurance is only going to make you feel regret later on. And getting the wrong kind of coverage can be even worse than getting high priced coverage, so putting the utmost priority on determining which type is actually needed first off is going to be your key to success



If you would like more information, resources and guides for whole term life insurance, then visit the #1 life insurance resource on the net at: http://termlifeinsurance2.com

3 Solid Tips on Finding Inexpensive Term Life Insurance

Between the different life insurance types you now understand the huge drawbacks when it comes to purchasing whole life insurance / permanent life insurance. Get a term insurance policy to protect you and your family instead.

Learn the difference between life insurance types: Term vs whole life insurance.

Tip#1 on finding Inexpensive Term Life Insurance

Knowing the right amount of coverage / death benefit that you actually need is important before you actually go to an online life insurance comparison site to get quotes. You want to have more coverage than you actually need instead of being underinsured. With Term prices being the much more inexpensive of the life ins types you won't need to worry as much about being over protected as you would on a whole life policy (permanent life). When comparing the monthly premium costs for term vs whole life with same coverage amount cheap term insurance beats out costly whole life / variable life / universal life 100% of the time.

Expenses to calculate before you buy life insurance:

Daily Living Expenses (Food/Clothing) Educational Expenses for the kids (College) Childcare Expenses Mortgage Payments / Housing Payments

Make sure you calculate those expenses and take into account future expenses that may arise. This will give you a good idea of the coverage that you need each month over 30 years or how every many years you need coverage for.

Tip#2 on finding Inexpensive Term Insurance

Once you have your life insurance rate quote(s) online wind it down to 3 companies and the quotes that you feel comfortable with and then take a look at the company financial rating:

Highest Rating / Financial Strength Rating of Company:

Standard and Poor's: A++ (Secure/Superior) A.M. Best: A A A (Extremely Strong) Moody's: A a a (Exceptional) Fitch: A A A (Secure/Highest)

Again, if you are looking for a great life insurance policy make sure you check the insurance credit or financial rating of the company. That's a major component of what makes a solid policy. If you purchase any life product from a company that has a terrible financial rating then your policy is worthless. Why? If you die the company may not pay out your death benefit on your policy. You can definitely find very good quality, cheap life insurance from a company with an extremely high or the highest financial rating.

Tip#3 on finding Inexpensive Term Insurance

Set not only the correct amount of term insurance coverage but the correct duration for your coverage.

Knowing that you do not need permanent insurance for the rest of your life you are only covering the years when your children are growing up. Why is this the case? The reasoning behind this is that your children are dependent on your income so you need to insure your income until they become independent which is normally after they find a job after graduating from college. When they can create their own income you will no longer have dependents who require your income and therefore no longer have a need for insurance coverage.

Term is normally quoted in the durations listed below: 30 year term, 25 year term, 20 year term, 15 year term, etc. (increments of 5 years). It is very inexpensive and is only needed for a finite amount of time. If you understand that aninsurance gets much more expensive as you get older you only want to purchase it when you need it. Buying insurance is not a way to become rich. There are other ways of achieving financial freedom for you and your family outside of this type of insurance. You won't have to keep one eye open at night either!

Another great thing about term ins is that you can cancel your policy at anytime without having to worry about a loss of the investment "cash value" as Whole life policy owners do.

Take these 3 tips on finding Inexpensive Term Life Insurance to heart. Once you've purchased your policy you can be at ease knowing that if something happened to the income provider the rest of the family is well protected for the long term

To learn more about Term vs Whole Life / Permanent Ins / Variable Life Ins please visit BaseQuotes.com

Evan Povich is a representative of BaseQuotes.com Insurance Comparisons Site.

BaseQuotes.com strives to provide cheap insurance quotes online. In order to save money on your insurance it is imperative that consumers compare insurance price quotes for whatever insurance one is planning to purchase.

Offering cheap insurance quotes from over 100 of the top insurance companies for life insurance quote / life insurance quotes, car insurance quotes, health insurance quotes, homeowners insurance quotes and Long term care insurance (LTC Quotes).

Converting Term Life Insurance to Permanent Insurance

Most term life insurance policies give the owners of the policy the option to convert to permanent life insurance. Although, from our experience, most people buy term life insurance because it offers lower premiums. Often overlooked is one of its main advantage of being able to change your term life into a whole or universal life without bringing proof of insurability. Often the process of converting is very simple and only requires filling out a form.
What are some of the advantages of convertibility
Save your approval rating - In other words, if, when you applied for term life, you had been approved for select non-tobacco rates, even if your health has turned for the worst or you now smoke, you can convert your term policy to a permanent life insurance (whole life or universal life) and retain the select non-tobacco rating.
Some exclusions are excluded - Most new policy have a common two year exclusions such as suicide, built into the insurance policy. Let say you have a ten year term and after 8 years you decide that you need a longer policy. If you just re-apply then the two year exclusion period starts all over again. But if you convert your term life policy to a permanent plan of insurance then the exclusion is usually waived.
Life settlement - An often forgotten important aspect of life insurance is life settlement. In short, life settlement is the ability to sell your insurance policies face amount to a third party. For example, let say you need $70,000 cash ASAP and you own a $100,000 life insurance policy. So you call a life settlement company and they tell you that if you give them your life insurance policy, then they will give you $60,000 cash! You say OK and everyone is happy. By the way, once they tale over your insurance policy, you no longer have to pay premiums but you loose full control of the policy. When you die, they get their $60,000 back plus $40,000 (total $100,000). If you have a non-convertible policy, it is going to be impossible to sell the policy to a life settlement company. Unless you only have six months or less to live in which case you would most likely not sell the policy. Beware, as life settlement payments may be taxable.
Mortgage life insurance - when taking out a life insurance to cover a mortgage, few people think of universal life or whole life. After all, since the mortgage term is well defined, then it would seem that term life is all you would ever need. Wrong! Let say you are a 35 year old with a 30 year mortgage. You most likely will select a 20 or 30 year term life insurance plan to cover the mortgage loan ins case of death. Now, 10 years into your mortgage you develop diabetes (common these days). Times get tough, you need to refinance your house. So now you cancel you old mortgage and take out another 30 year mortgage. Problem is, your 20 to 30 year term plan is now too short. So you shop around and because you have a per-existing medical condition, rates are either high or no one will insure you. Fortunately, you discover that your existing, preferred approved, insurance policy is convertible. You call the insurance company and convert to a permanent life insurance plan that will not only cover the length of your new mortgage but any other subsequent mortgages. Case easily solved!
You are unlikely to outlive your coverage - As we get older and seem less invincible, our thoughts about life insurance changes dramatically. The end of a term insurance policy (or rising rates) becomes much more of an issue. Irregardless of how you feel when you first started your term insurance plan, know that you may be one of those people who may have some remorse about selecting cheap term life. Again, make sure that your term policy, even if the cost is a bit higher, is convertible to a good permanent life insurance. Keep this in mind: one study showed that the percentage of TERM LIFE INSURANCE policies that pay out is around 1%!
Convert to what?
That is a very important question. The fact that your policy is convertible is great but if you can only convert to a lousy whole life policy with very high premiums and low cash value, then the option is practically useless. When you take out a term life insurance policy, make sure to ask your advisor to give you sample proposals of plans that your policy is convertible to. Your term insurance policy should be convertible to at least two types of permanent whole life or universal life insurance. The new plan should offer lifetime rate guarantees. If possible one plan should be a high cash value life insurance whole life or universal life. Note that the name of the plan is irrelevant, its function is.
Another option!
Although not as good as the conversion option, another overlooked option is ROP term (Return of Premium term). ROP term life insurance is often selected because it seems to give you an incredible option. With most plan, at the end of the term (15, 20 or 30 years) you get back all of the premiums you paid over the term of the policy. Another aspect of many of these polices is what is called paid up insurance. In other words, if you decide to stop paying on your life insurance policy after, let say, 20 years, a portion of the face amount will be yours forever even though you are no longer making premium payments. That portion of face amount that is yours forever can vary greatly from company to company. Ask for a proposal and read your approved policy carefully. Because only a portion of your policy can be yours for life, ROP term is not as good of an option when it comes to convertibility.
We hope this helped you understand the importance of term life insurance convertibility option. As each case can be very specific, we highly recommend that you speak to at least two advisors before making a final decision. As we say in all of out articles ask, ask and ask more questions, Be well.



Philippe Deray - About the Author:
Philippe Deray is President and CEO of MCD Financial Services and MCD Life. Our web site address is http://www.mcdlife.com
Company Profile
MCD Life is a successful, dynamic company built on the principal of serving our customers FIRST! Our primary mission is to bring peace of mind to our clients by offering innovative, value-added products and information that place emphasis on short and long term benefits, benefits backed by selected companies with high quality assets and written guarantees.
Our Focus is Life Insurance
With many years of experience in the insurance business, we have developed proprietary methods to help individuals get affordable life insurance. We offer term insurance, whole life and universal life insurance. We will make this process as simple as possible and get you an answer as fast as possible.

Suze Orman on Term Life Insurance Versus Whole Life

If you love Suze Orman then you might want to understand more about her stance on Whole Life Insurance. Here is a conversation with a guest calling in which will shed some light on her thoughts on Term Life Insurance vs Whole Life.
A caller has phoned in asking Suze's advice on whether to purchase a whole life policy recommended by a friend. The annual premium is $14,000 for $500,000 of whole life coverage. Caller states that this policy was supposed to also be an investment for the future as well.
Suze Orman: "Oh sweetheart that's not a friend that a sn....I don't even know %#*#)$! You know, it gives me dandruff I think. Listen, you can get a half a million dollar term policy for 20 years at your age for approximately $25 or $30 per month. OK? That's $300 per year. Now, if you really want to make an investment you could take all those other $1000s of dollars and take that money and invest it where? In a retirement account, a piece of real estate, in stocks, bonds, whatever it may be where it absolutely makes sense to you."
Why doesn't Suze Orman like Whole Life Insurance (also known as Permanent Life Insurance / Variable Life / Universal Life)?
For the amount of death benefit one can purchase Whole Life, as life insurance is way overpriced.

$500,000 worth of Whole Life Coverage = $14,000 per year
$500,000 worth of Term Coverage = $300 per year
Difference of $13,700 extra you are paying to get Permanent Life coverage.
What is the difference between Term Life Insurance vs Whole Life Insurance?
Term Insurance is for a set term or time period from 1 year and usually up to 30 years.
Whole Life is life coverage for the rest of your life PLUS an "investment portion" held by the life insurance company.
With Term Coverage there is no investment portion. Like car insurance it is pure insurance. That's it.
Do you ever see an auto insurance agent try to add an "investment" to your automobile coverage? No you do not. It doesn't make sense at all. What for? It is the same thing with life insurance. What for?
With Whole life coverage it is Term insurance + Investment Portion with you paying premiums for the rest of your life.
1st thing's first. What do you need life coverage for?
You need it to protect your family that depends on the breadwinner's income whether it be the husband working, the wife working or both parents working to bring money in to take care of the family. Life Coverage is there so that if something happens to the income provider the income can still come in and the family isn't financially devasted.
Once the children are grown up and making their own income they are no longer dependent on the parent(s) income. At that time you no longer need it for that purpose.
So why keep paying premiums for the rest of your life?
Some people believe that it will make their family rich but that is further from the truth. Don't throw away your money like that. You are better off buying term coverage only for the time period for which it is needed.
Besides, the older you get, the premiums are going to skyrocket. You only purchase it when you need to protect your family.
Save your money and/or invest it wisely.
But what about the investment portion when you buy whole life insurance?
It is sold to you as an investment for retirement / children's college fund / emergency fund in which it will grow while being held by the company and you can "BORROW" from it and pay it back with interest.
BORROW from my investment? Isn't it my money?
No, as long as your policy is active you can only borrow from it AND pay the life company back with interest. They call it CASH VALUE. Sounds like a catchy and wonderful phrase right?
The real ripoff? You first year of premium payments you get NO CASH VALUE. That's right. The money that was supposed to go to your investment portion only starts the 2nd year. The first year it goes to the insurance agent commission and the insurance company. Your money? Yeah right. Their money.
BOTTOM LINE? Buy Term Coverage only when you need it (ONLY when you have dependents)
Take the money that you would save and put it into a retirement account which YOU CONTROL 100%. Your money fully controlled by you to invest it anywhere you choose or just leave it in cash.and STAY AWAY from Whole Life / Permanent / Universal Life / Variable Universal Insurance or any type of life insurance that has a savings or investment tied to it.
Take your savings a step further by comparing Term Life Rates online.



Evan Povich is a representative of BaseQuotes.com Insurance Comparisons Site.
We agree with Suze Orman 's opinion of the purpose of life insurance and what it should be purchased for.
BaseQuotes.com offers life insurance quotes comparison from over 100 of the top insurance companies offering life insurance quote / life insurance quotes, car insurance quotes, health insurance quotes, homeowners insurance quotes and Long term care insurance (LTC Quotes).

Whole Term Life Insurance - Tips and Suggestions

Whole term life insurance is also known as a permanent life insurance policy. This policy will cover you for the entire time that you are alive rather than just for a specific term, like term life is designed to do. There are many different benefits and advantages to having a whole term life policy versus having a traditional term policy.
There are also many ways to make this same insurance more affordable, no matter who you are or how much you can afford to spend on insurance. Education and understanding is the key to your success with life insurance of any kind.
A whole term life insurance policy works by charging a premium based on the face value of the policy. This is the amount of money that is paid it when the insured person dies. Every time you pay a premium on your life insurance, those accumulate into cash value, which is the amount that you paid into the policy over time.
Most companies set a standard of paying for 100 years before the face value in a cash value will be equal. It is also important to note that your premium will rise over time, both because of the additional risk of getting older and affecting your income should increase as you age.
There is also the option to level out your premiums based on how much you're going to pay for the entire life of the policy, so that you don't have to pay a lot in the end, in case you are afraid that you can't afford it. This means that you will always pay the same amount, but also that you will pay higher premiums in the beginning.
This is a good option for those who can afford it because it won't leave you with the risk of losing your life insurance because you can't afford it later on in life.
With a whole term life insurance policy, you will be able to borrow against the cash by you that you have paid into your policy over time. This can be helpful if you run into unexpected expenses or happen to lose your job or income for any reason whatsoever. It can also be used to find vacations trips or other expenses that you don't have the means to pay for.
Ultimately, a whole life policy is one helpful way to have the life insurance they need and also to protect yourself from unexpected expenses, and financial needs and your later life . . .