|
Life
Insurance is an Insurance policy intended to protect against
financial loss due to the death of the Insured.
Most often, Life Insurance is used to
protect families in case a parent or spouse is no longer alive.
The second most common usage for Life Insurance is for loans, and
business interests.
AD&D (Accidental Death & Dismemberment)
often accompanies a Group Life Insurance program. This benefit "pays
double", if the death was due to an accident. It also includes a
benefit for Dismemberment.
Group Life Insurance is TERM Life Insurance,
usually between $15,000 to $50,000 of Life Insurance per Employee. Often,
there is an option to include Life Insurance on the Employee's dependents
(Spouse & Children). Many businesses give their Employees the option
to purchase additional Term Life Insurance, at low group rates, and with very
simplified underwriting. This is known as Supplemental Life Insurance, or
Voluntary (Payroll-Deduction) Life Insurance.
We recommend Term Life Insurance,
which is the purest form of Life Insurance, with no cash value.
The premium often stays level for a specified term (such as 10 years, 15
years, 20 years, etc.) The premium is lower than Cash Value Life
Insurance, and there is not a "savings portion" to the policy.
We recommend this type of policy in almost every situation.
Cash Value Life Insurance (sometimes
called Whole Life, Universal Life, or Variable Life) is not pure Life
Insurance. It combines a Life Insurance policy with a savings
element. It appears on the surface that it would be more
beneficial, but it is costly, and has several disadvantages. It is
often promoted by Life Insurance salespeople, but we do not recommend
it. We often tell the buyer to buy Term Life Insurance, which is
less expensive. Then, use the money you saved on the premium to
create your own investment, outside of a Life Insurance policy.
This concept is known as "buy term and invest the difference",
and most financial magazines recommend it.
Click here for premium
quotes for life insurance |
|
|
