Life Insurance Basics

If you are over 18 years of age you should educate yourself on life insurance basics. You don't have to become an insurance wizard, but every adult should know rudimentary information about life insurance. First let's take a look at the main types of insurance. They are term life, whole life, universal life and variable life. Universal and variable can be combined to make a universal variable life insurance policy. It may sound a bit confusing, but once you know the difference between each type it is quite easy to understand.

Term life insurance is the cheapest type of coverage. It does not build cash value. Cash value is money that can be used by the policy holder. Also, term life insurance lasts for a specified period before it expires. When the term is over you can renew your policy if you choose. If you die during the term, your beneficiaries receive the value of the policy. Term life is a straightforward type of life insurance but some policies may have fluctuating premiums. Make sure you understand the details of your policy before signing any binding contracts.

Whole life insurance is coverage for your whole life. It builds cash value, which means you can withdraw funds. Since insurance policies are usually tax free this allows you to accumulate funds that are tax free. Whole life insurance does not offer a lot of flexibility because the insurance company decides how to invest your cash. However, you can choose whether you want the money put into an account to build or put towards your premium payments. To learn more about the tax benefits of insurance investing, speak to a certified financial planner.

Universal and variable policies are more flexible because they do give you choices as to where to invest your money. However they may also have some disadvantages because they can be more risky. If you want to learn more about the types of insurance, the Internet is a great source of knowledge. You can also obtain free life insurance quotes from leading companies. If you need more information about life insurance basics or want to apply for a new policy, consult an insurance agent who can walk you through the process and answer all your questions.

 

 

Life Insurance News:

 

US clamps down on Trustmark
Recently, in a significant development, the Democratic government of the United State has announced that the hike in the..


IndiaFirst Life Insurance launches Autolife - Economic Times

IndiaFirst Life Insurance launches Autolife
Economic Times
The announcement was made by Dr. P. Nandagopal, managing director & CEO, IndiaFirst Life Insurance. Mr. MD Mallya, chairman & managing director of Bank of Baroda, Mr. BA Prabhakar, chairman & managing director of Andhra Bank and Mr. Gareth Hoskin, .
IndiaFirst's new plan: Life cover and car buy at same spotIBNLive.com
IndiaFirst launches insurance plan for vehicle-buyersHindu Business Line
IndiaFirst in tie up with Varun MotorsThe Hindu

all 11 news articles »
..


Crump
EXTON, Pa., Jan 24, 2012 (BUSINESS WIRE) -- iPipeline(R), the leader in on-demand software that supports marketing, selling, and processing solutions for the nation's top..


Life Insurance Quotes Searched By Younger Americans - WebWire (press release)

Life Insurance Quotes Searched By Younger Americans
WebWire (press release)
Choosing the right life insurance policy is often a daunting decision faced by older Americans. However, that decision is starting to come at a younger age as more young Americans find that they need to have the right kind of life insurance.

..


Choosing the right long-term care policy to cover your needs - Live Insurance News

Live Insurance News
Choosing the right long-term care policy to cover your needs
Live Insurance News
The percentage of people who have purchased life insurance has currently reached a figure that is lower than it has been in half a century, as many people debate whether or not the coverage is worth their money when they are already tightening their .

and more »
..


Life insurance premium mop-up dips
Life policy issuances shrink 11% in April-December; premium collection by general insurers rises 24%...


Agreement Reached With Metropolitan Life Insurance Co. - Insurance News Net (press release)

Agreement Reached With Metropolitan Life Insurance Co.
Insurance News Net (press release)
Attorney General George Jepsen and Consumer Protection Commissioner William Rubenstein have reached an agreement with Metropolitan Life Insurance Co. to provide additional protections to the current and former customers whose personal information was .
Hunton & Williams | Connecticut AG Announces Agreement with MetLife over 2009 .Linex Legal (press release) (registration)

all 2 news articles »
..


Remembering that a house is a home, and finding cheap
Let's answer a couple of reader questions on the housing market and..


TEXT-Fitch:South African
Jan 26 - Fitch Ratings says in a new special report that the South African..


Life insurance premium mop-up dips - Business Standard

Life insurance premium mop-up dips
Business Standard
The life insurance industry's premium collection continued its downward trend, as policy issuances declined in the first nine months of the current financial year. During the April-December period, the number of policies issued by the 23 life insurance .
Life industry premium dips 17%Times of India
Turbulent economy, low interest rates have everyone feeling pinchWinnipeg Free Press

all 4 news articles »
..


IMPORTANT: Bing News RSS feed has moved!
Go to the new RSS page and renew your subscription.
..


Money & the Law: Agreement targets delay in death benefits
..


5 Common Myths About
Do you have enough..


Families, Life Insurance and Trusts
EL DORADO HILLS, Calif., Jan. 26, 2012 /PRNewswire/ -- As a parent, you understand the importance of life insurance. You've figured out how much life insurance  you need and determined the kind of policy ...


Life industry premium dips 17%
Premium from sale of new life insurance policies in the first three quarters of FY 2010-12 has dropped 17% to Rs 71,953 crore from Rs 86,698 crore...


A.M. Best Affirms A- (Excellent) Rating of Nippon Life Insurance Co. of America
Nippon Life Insurance Company of America, a leading provider of employee benefit solutions, today announced that A.M. Best has affirmed the companys financial strength rating of A..


Life insurance premium mop-up down 19% in Apr-Nov
However, premium collected by general insurers rises 24%...


Life insurance: Is term life always enough?
Most families are better off buying cheap, straightforward term insurance, but there are situations where universal or whole life policies make sense...


IndiaFirst
The announcement was made by Dr. P. Nandagopal, managing director & CEO, IndiaFirst..


Life Insurance Premium Financing Specialists Announce the Availability of an Internet Website Resource
TROY, Mich., Jan. 27, 2012 /PRNewswire/ -- The owners of American Premium Finance today announced the availability of their online resource site dealing with life insurance premium financing. This site, ...


Reading PA Car Insurance Website Launched, Offers 25 Competing Brands - PR Web (press release)

PR Web (press release)
Reading PA Car Insurance Website Launched, Offers 25 Competing Brands
PR Web (press release)
American Insuring Group, Ltd, a Reading, PA agency offering 25 competing brands of insurance, is pleased to announce the launch of a state-of-the-art website to help customers save on car insurance, homeowner's insurance, and health, life, .

and more »
..


Remembering that a house is a home, and finding cheap insurance - STLtoday.com

Remembering that a house is a home, and finding cheap insurance
STLtoday.com
Brittanie Williams | BWilliams@post-dispatch.com Let's answer a couple of reader questions on the housing market and life insurance. My husband and I are in our late 50s. We've been in our present home for over 30 years. We have an outstanding mortgage .

..


Thai
Thai..


Do You Need Life Insurance in Retirement?
It sometimes makes sense to keep renewing your policy in retirement...


Money & the Law: Agreement targets delay in death benefits - Colorado Springs Gazette

Money & the Law: Agreement targets delay in death benefits
Colorado Springs Gazette
Life insurance companies have, for the most part, avoided the criticism being directed at other players in the financial services industry in the aftermath of the economic meltdown. But a couple of weeks ago, the life insurance industry took a hit when .
The basics of variable annuitiesAiken Standard

all 3 news articles »
..



Technorati Tags: , ,