Family Health Insurance
Mar
12
Where can I get low cost life insurance for my parents?
March 12, 2010 | 4 Comments
My parents are getting older now and I was wondering where was a good reliable place I can obtain low cost life insurance for them in case something happens to take care of their bills and wishes? I’ve seen ads on TV and the internet, but I can’t tell who is a reliable company and it would be great if they don’t have to go through a medical exam. I’m not looking for a million dollar policy or to get rich, just something reasonable to help take care of their bills and stuff should the worst happen.
I’m a financial representative and providing life insurance is one of the things I do for clients. God forbids if the breadwinner dies, where would the family be without life insurance? Life insurance can’t protect you against harm or death, but it can replace your income. The problem is that many families that own life insurance don’t have adequate coverage, but they pay lots of premiums for it. That’s because they own the wrong type of life insurance. Take a look at the facts and you decide which product is the best:
Whole life insurance
1) Its level term to around age 100 that builds cash value.
2) Since it builds cash value, premiums are higher than term insurance that doesn’t build cash value.
3) There is no cash value growth in the first 2 years because premiums are used to pay for the insurance and commissions to the agent.
4) After first 2 years, you are guarantee a rate of anywhere between 1-4% (varies between companies)
5) If you wish to take money out from the cash value, you have to borrow it and pay loan interest of 6% to 8%.
6) If you die someday, the insurance company keeps your cash value, but pays the death benefit. Death benefit will be reduced by any loans you taken from the cash value.
Universal life insurance
1) Annual renewable term until around the age of 100 that builds cash value.
2) Flexible premiums as long as there’s enough cash value to pay for the insurance.
3) While premiums may remain level in the beginning, the internal cost of the insurance goes up every year. That means less and less of your premiums goes into the cash value. Eventually, the premiums you pay will be insufficient in the future to pay for the cost. What would happen is that you would either have to pay more premiums or a portion of your cash value will be used to pay for it.
4) Same cash value features as whole life.
Term insurance
1) Various of level term products to choose from (from 1 year to 35 years).
2) It does not build cash value, so premiums are initially lower than whole life and universal life.
3) Most term insurance are guaranteed renewable to around the age of 95 to 100 without providing a proof of insurability. If your health was to decline because of old age, you can renew your policy without any hassle.
4) When you renew, premiums will be based on your current age. So premiums will go up after the initial level term.
Those are the facts.
Personally, I have sold term insurance 100% of the time. Why? Its because my clients can get lots of coverage for low amount of premiums. Since premiums are low, I help setup investment accounts for my clients so that they can build wealth. If you had lots of money saved right now, would you still need life insurance? Probably not. But you probably don’t have lots of money saved right now and if something were to happen to you, would your family be financially ok? As you get older and continue to invest, you may or may not need life insurance when it is time to renew the term insurance. If you were to invest $200/month for the next 30 years and the average rate of return in your portfolio was 12%, you would have about $700k saved for retirement. That’s probably not enough to live on, but at least its better than having money sitting in a life insurance policy. If you were to die during the term, your family gets the death benefit and all your savings and investments. If you die after the term, at least you will leave money behind to your family. With the cash value life insurance, in most policies, your beneficiary will only get the death benefit, but the insurance company keeps the cash value.
Comments
4 Comments so far
I went thru AARP I called their insurance department….I checked on a lot of different companies and theirs was the cheapest and most reliable
References :
Why not let an insurance broker do the shopping for you? A broker works with several companies and can find the best plan and rates for your parents. To find a broker, log on to a website like http://www.lifeinsurancewiz.com and fill out a form requesting a quote. Your information will be sent to a broker in your area who will contact you. The consultation is free and there is no obligation.
References :
http://ezinearticles.com/?Life-Insurance—5-Mistakes-People-Make-When-Purchasing-A-New-Policy&id=549552
I’m a financial representative and providing life insurance is one of the things I do for clients. God forbids if the breadwinner dies, where would the family be without life insurance? Life insurance can’t protect you against harm or death, but it can replace your income. The problem is that many families that own life insurance don’t have adequate coverage, but they pay lots of premiums for it. That’s because they own the wrong type of life insurance. Take a look at the facts and you decide which product is the best:
Whole life insurance
1) Its level term to around age 100 that builds cash value.
2) Since it builds cash value, premiums are higher than term insurance that doesn’t build cash value.
3) There is no cash value growth in the first 2 years because premiums are used to pay for the insurance and commissions to the agent.
4) After first 2 years, you are guarantee a rate of anywhere between 1-4% (varies between companies)
5) If you wish to take money out from the cash value, you have to borrow it and pay loan interest of 6% to 8%.
6) If you die someday, the insurance company keeps your cash value, but pays the death benefit. Death benefit will be reduced by any loans you taken from the cash value.
Universal life insurance
1) Annual renewable term until around the age of 100 that builds cash value.
2) Flexible premiums as long as there’s enough cash value to pay for the insurance.
3) While premiums may remain level in the beginning, the internal cost of the insurance goes up every year. That means less and less of your premiums goes into the cash value. Eventually, the premiums you pay will be insufficient in the future to pay for the cost. What would happen is that you would either have to pay more premiums or a portion of your cash value will be used to pay for it.
4) Same cash value features as whole life.
Term insurance
1) Various of level term products to choose from (from 1 year to 35 years).
2) It does not build cash value, so premiums are initially lower than whole life and universal life.
3) Most term insurance are guaranteed renewable to around the age of 95 to 100 without providing a proof of insurability. If your health was to decline because of old age, you can renew your policy without any hassle.
4) When you renew, premiums will be based on your current age. So premiums will go up after the initial level term.
Those are the facts.
Personally, I have sold term insurance 100% of the time. Why? Its because my clients can get lots of coverage for low amount of premiums. Since premiums are low, I help setup investment accounts for my clients so that they can build wealth. If you had lots of money saved right now, would you still need life insurance? Probably not. But you probably don’t have lots of money saved right now and if something were to happen to you, would your family be financially ok? As you get older and continue to invest, you may or may not need life insurance when it is time to renew the term insurance. If you were to invest $200/month for the next 30 years and the average rate of return in your portfolio was 12%, you would have about $700k saved for retirement. That’s probably not enough to live on, but at least its better than having money sitting in a life insurance policy. If you were to die during the term, your family gets the death benefit and all your savings and investments. If you die after the term, at least you will leave money behind to your family. With the cash value life insurance, in most policies, your beneficiary will only get the death benefit, but the insurance company keeps the cash value.
References :
http://finance1o1.blogspot.com
Google "AM Best" It is a company that rates the different life insurance companies. A great company that you should turn to is AccuQuote, it is brokerage firm that only deals with A+ or better rated companies. I work for AccuQuote and I have a number of companies I can run a quote for you. Feel free to contact me for my contact information.
We shop around for you and find you the best rates!
References :