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Term Life Insurance & Whole Life Insurance Discussion

Looking For Life Insurance.?

Postby Gaven » Wed Oct 04, 2017 9:32 am

Whole life insurance is a form of life insurance which has a guaranteed level death benefit until death or age 100, which ever comes first. It also builds a guaranteed cash value which will equal the face amount of the policy at age 100. So if you have coverage of $100,000 and you are still alive at age 100, the insurance company will void your life insurance policy and pay you $100,000.

Premiums remain level and there are 3 ways you can pay your premiums. The most common way is called "Straight Life" or "Continuous Premium Whole Life." This is where you premiums continuously until you die or when you reach age 100.

The second way is called "Limited Pay." This is where you pay a higher amount of premiums than Straight Life for a certain amount of time. Examples of this are "20-Pay Life" or "Life Paid at 60." With "20-Pay Life" you pay your premiums for 20 years. "Life paid at 60" means you pay your premiums until you reach 60 years old. The shorter the payment period, the higher the premiums and vice versa.

The third way is called "Single Premium Whole Life." This is where you pay one lump of premium and never have to pay it again.

As I mentioned earlier, Whole life insurance builds cash value. You can borrow it anytime and use it for any purpose. The question is "what is this borrowing part all about?" Isn't the savings suppose to be your money? The answer is no. The premiums you pay belongs to the insurance company.

If you want to take money out from your life insurance, you have to borrow it. The insurance company will charge you a loan interest of anywhere between 5-8%. But in the first 2 years of the policy, no cash value is accumulated. So there's nothing you can borrow during that time. After the first 2 years, you are guaranteed an interest rate between 1-3%. When you borrow money from the cash value, your death benefit is reduced by the amount you borrowed, but the premiums remain the same. Interest charged on the amount you borrowed does not go back into your cash value. It goes directly to the insurance company.

If you die someday, the insurance company keeps your cash value and pays the death benefit only.

If someday, you decide you want to cancel your whole life policy, you will get most of your cash value. When you cancel your life policy, the insurance company may charge you a surrender charge on your cash value. If you borrowed money from your cash value, it is important that you pay this loan back before canceling the policy. Failure to do so will result in income tax on the loan amount.

In summary, here are the pros and cons of whole life insurance:


1) You are guaranteed coverage until you die or reach age 100, whichever is first.

2) Premiums remain level.

3) It builds cash value.


1) It builds cash value, which makes this type of life policy very expensive.

2) Cash value grows at a low rate of return

3) If you want to use the cash value, you have to borrow it and pay loan interest of 5-8%

4) If you die, the insurance company keeps your cash value.

Term insurance is designed to provide death protection for a definite and limited period of time such as One Year Term, Five Year Term, 30 year Term, or Term to 65. If the insured dies during the term, the policy matures and the insurance company pays the face amount of the policy to the beneficiary. If the insured doesn't die during the term, the policy expires.

The second most important characteristic of Term insurance is that it is pure insurance. You pay premiums only for the coverage. Since there are no forced savings or cash value attached to Term insurance, it is designed to provide the greatest possible protection for the lowest possible cost. Therefore, the two key points to remember about Term insurance are that if offers (1) protection only for a (2) a specified period of time.

One of the most widely marketed forms of Term insurance is Annually Renewable Term (ART). The insurance company grants the insured the right to renew the policy each year to a stated date or age. The cost to renew the policy goes up each year because the rates are based on the insured's attained or current age.

The increasing in premiums can present a real problem for the insuring public. One Term product that provides a partial solution to the rising costs is Level Premium Term. With a policy of l0ng duration, the payment may be leveled out over the life of the policy to create Level Premium Term. The cost of Level Premium Term is calculated by price of the early years by the price of the later years. So in the beginning, you are making an overpayment of what the actual cost of insurance is. But in the later years, you are making an underpayment of what the actual cost of the insurance is. Why? Because the cost to insure someone is young is low compare to the cost of insuring someone who is old.

Term insurance, then, in any of its many forms, is the most affordable protection available for teh premium
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Joined: Sat Jan 04, 2014 11:38 am

Looking For Life Insurance.?

Postby Audric » Wed Oct 04, 2017 1:48 pm

I would recommend Northwestern Mutual.
They are the strongest life insurance company in America and their agents can offer their product and any other product in the brokerage market.
Do your research.
They are, and always have been, the best by quite a margin.
However, if they can't meet your needs through Northwestern Mutual, MassMutual, NYL, or a number of other decent companies can also be brokered through their agents.

Anyone that says life insurance on a child is a waste of money never had to pay a claim to a deceased child's grieving parents.
It was the best money they ever spent.
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Looking For Life Insurance.?

Postby Bealantin » Wed Oct 04, 2017 2:22 pm

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Joined: Mon Jan 06, 2014 1:10 am

Looking For Life Insurance.?

Postby Tihkoosue » Thu Oct 05, 2017 1:15 pm

Once you figure out how much coverage you'll need, you can think about the best kind of policy to meet your needs. Life Insurance Type will help you that.
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Joined: Sun Jan 05, 2014 1:33 pm

Looking For Life Insurance.?

Postby Kody » Fri Oct 06, 2017 3:24 am

Why are you not buying life insurance from BankBazaar?Becasue, here you can compare different policies and choose the best one as per your mother and sister's health.
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Joined: Thu Apr 10, 2014 10:42 am

Looking For Life Insurance.?

Postby Hrocby » Sat Oct 07, 2017 5:35 am

Life insurance is needed most in times of financial trouble,Its really base on her needs. I would advise her to look at her policy to see what type of life insurance it is and then go take a look at this site: http://lifeinsuranceguideline.com to see more advice which explains how these policies work
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Looking For Life Insurance.?

Postby Douglass » Sun Oct 08, 2017 4:47 am

Why do you want life insurance on a 14 year old?

In either case, you go to a local agent - they'll get quotes for both.
But life insurance on kids is a waste of money.
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Looking For Life Insurance.?

Postby Sewati » Sun Oct 08, 2017 11:29 pm

I suggest one to visit this web site where onel can get quotes from different companies: http://QUOTES-FOR-INSURANCE.NET/index.ht...

RE :Looking for life insurance.?

I am looking for a life insurance policy for my mother and sister. She is 47 and she is 14. what would be the best place to go for that. She has had problems with her heart in the past but it is fine now.

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Looking For Life Insurance.?

Postby Cristian » Mon Oct 09, 2017 4:16 pm

I am looking for life insurance for my mom she is 81 years old, has COPD other than that he is good health . She has late her life insurance lapse because of some financial problems and I am just finding it out, so now I am trying to find some that I can start ,can you help me!
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