cheapest life insurance, term life insurance quotes, term life insurance calculator,

Many people buy life insurance to protect their love ones in the event that they die.  Some people buy life insurance to leave a cash gift to loves ones or charities.  Others buy life insurance as a shelter deferring taxes on investments because they have maxed out their 401K, IRAs and other tax shelter vehicles.

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There are different types of life insurance.  The most common types of policies are: cheapest life insurance, term life insurance quotes, term life insurance calculator,

• Term

• Whole-Life

• Universal-Life

• Variable

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While the Financial Swami will briefly explain the general differences in the types; please contact an insurance provider for comparing all the differences.

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Term cheapest life insurance, term life insurance quotes, term life insurance calculator,

  cheapest life insurance, term life insurance quotes, term life insurance calculator,

Term life insurance is the most simplistic of the four we will explain.  It is typically the least expensive also.  Individuals can buy a policy that will pay a set amount in the event that they die within a set period of time (a term).  As long as the premiums are paid, and the time period (the term) hasn’t expired, the policy will pay out.  Typical terms range from 1 year to 40 years, with 30 years being the one you see advertised the most.  Term life insurance does not have a cash value.  At the end of the term, say 30 years from the date of signing the contract, the insurance discontinues and both parties walk away.  This insurance is based on statistics being used to calculate the probability of you dieing with in the term based on your age, health, occupation, ECT.

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The people who typically purchase Term are those who only need the life insurance for a certain period of time.  Term is the insurance most new families purchase when they have babies.  They tend to purchase term because the cost is usually less and they want to protect their family for the next 30 to 40 years.  By then, their children are adults and on their own.

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Whole-Life cheapest life insurance, term life insurance quotes, term life insurance calculator,

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Whole-Life insurance pays a death benefit when a person dies.  It is typically a contract for life or until a set age like 100 years old.  The cost of a whole-life policy is usually higher than a term policy and the premium must be paid in full each year (unlike term where you can typically break the payments up through out the year).  Additionally, whole-life insurance has a cash value attached to it.  This value is the difference between the actual cost of the policy and the premium the person pays.  The cash value can be borrowed against, or cashed out if the policy is cancelled.  When the individual dies, the policy pays of the insured amount, not the cash value.

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The people who typically purchase Whole-Life want to insure that their beneficiaries receive a payment regardless of age of the decease.  These people also want to make sure that there is a cash balance in the account so that they can borrow against it to pay future premiums in the event that cash becomes tight.

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Universal-Life cheapest life insurance, term life insurance quotes, term life insurance calculator,

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Universal-Life is similar to Whole-Life insurance except that individuals can make changes to the policy.  A person is not locked into a fix premium per year or a fixed payout in the event of a death.  This flexibility allows individuals to customize their coverage.  Universal-life does not terminate at a set time like Term insurance; but rather coverage an individual until death like Whole-Life.  This policy also carries a cash value, similar to While-life, which typically pays a low interest rate.  Some, not all, Universal-Life policies pay both a set death benefit and the cash balance. cheapest life insurance, term life insurance quotes, term life insurance calculator,

  cheapest life insurance, term life insurance quotes, term life insurance calculator,

  cheapest life insurance, term life insurance quotes, term life insurance calculator,

An example of a person who might purchase Universal-Life is a person wants to carry higher death benefits while raising children and then be able to reduce the coverage when the children have grown up.

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Variable Universal - Life cheapest life insurance, term life insurance quotes, term life insurance calculator,

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Variable Universal Life insurance combines the guaranteed death benefit of Universal Life with the flexibility of managing the cash balance in an investment portfolio.  You are capable of investing the cash balance in mutual funds, stock funds, bond funds or other assets.  This money can grow tax free.  This allows individuals to use the policy as an investment vehicle with the potential of growing the cash balance faster.  The risk is that if the investments perform poorly, then the owner may need to pay more premiums to keep the policy active.

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People who purchase Variable Universal Life insurance typically want a payout regardless of the age of death and want to have the freedom to invest the money themselves.  You also see individuals who have already maxed out their 401K and IRA contribution limits use this type of insurance to shelter additional money.

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 cheapest life insurance, term life insurance quotes, term life insurance calculator,