Life Insurance Personal Use Ebook

Table of Contents

INTRODUCTION 4
TYPES OF LIFE INSURANCE 6
TERM LIFE 6
WHOLE LIFE INSURANCE 11
UNIVERSAL LIFE INSURANCE 13
WHO NEEDS LIFE INSURANCE? 14
BIRTH – 18 YEARS 14
18 – 55 YEARS 15
55 – RETIREMENT 17
HOW MUCH INSURANCE DO I NEED? 18
WHAT TYPE OF INSURANCE IS BEST FOR ME? 21
INSURANCE TIPS 22
FIGURE OUT HOW MUCH COVERAGE YOU NEED 22
COMPARE COMPANIES 23
CONSIDER PAYMENTS AND YOUR BUDGET 23
ASK FOR HELP 23
KEEP YOUR CURRENT POLICY 23
REVIEW YOUR POLICY 24
IF YOU’RE TURNED DOWN, DON’T GIVE UP 24
YOUR BENEFICIARY 25
TRY NOT TO THINK OF YOUR POLICY AS AN “INVESTMENT” 25
CHECK THE RIDERS 25
TALK TO PEOPLE YOU KNOW AND TRUST 26
BE PREPARED TO ANSWER QUESTIONS ABOUT YOUR HEALTH 26
REALLY THINK TWICE BEFORE CANCELING 26
CONCLUSION 28

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– Renewable Term

Term life insurance is set for a certain amount of time, thus the name “term.” When that time runs out, the insured must create a new policy, then qualify for the new policy, and pay whatever initial costs are necessary to create a brand-new policy.

– Modified Term Life Insurance

Much like it sounds, a modified term life insurance policy allows for flexibility. Decreasing death benefits, increasing premium amounts over time, this type of term insurance can be altered to suit your needs currently and in the future.

– Re-entry term life insurance

When purchasing term life, insurance carriers charge less because they have screened the applicant and found him/her to be in good health. What began to happen is that over the length of the term, say five years, people who remained in good health dropped their policies and those who had failing health held on to theirs. In the 1970s insurance companies offset the trend by offering Reentry term life insurance. If the insured continues to demonstrate insurability and general good health, renewal premiums based on lower mortality charges are comparable to newly issued term policies.

Reentry term life, however, can be much more expensive if over the length of time of the original term the insured has encountered health issues.

– Final Expenses / Burial Plans

These plans are not intended to pay your benefactors, but to cover associated burial and funeral costs. These policies vary from $5,000.00 to $50,000.00, though it is very rare to find a policy over $20,000.00.

Final expenses can be a part of either a term life or a permanent life insurance policy. In the case of term life, the benefits are in force if the insured passes during the time when the policy is in force. If the term is ten years and the insured outlives that period, the coverage is lost, and the insured must reapply.

Premiums are much less for someone at the age of 45 than for someone at the age of 75. Permanent final expenses policies do not have an expiration, as long as the premiums are paid on time and can, in some situations, even provide a tax differed cash value component over time.

When considering this type of coverage, consider the needs you have and will have, term or permanent, and consider the history and financial stability of the insurance carrier.

This type of policy has two parts, the guaranteed and the simple issues.

– Guaranteed issue

Guaranteed issue does not require a medical exam or questions. The premiums are higher than a simple issue, but no one can be refused a guaranteed issue. This is especially convenient for people with poor health or health issues.

– Simple issue

This plan does require answering medical and health questions but does not require a medical exam. Premiums are lower in the simple issue.

In either case, if you are in poor health or have been denied coverage, this is still a viable option for you to cover your final expenses.

Whole Life Insurance

Whole life insurance is the simplest form of life insurance. Whole life coverage means that the premiums are locked in for the length of the coverage. This is particularly handy for people on a budget. The biggest advantage of whole life is being able to purchase a policy when the insured is younger and in good health and, providing the premiums are kept up on time, the monthly payments will not increase with age or declining health.

The whole life policy has a cash value component which is tax-deferred, meaning that those taxes are only paid on the cash value when the cash is accessed, so there is more there to collect interest.

The cash value will grow in this type of policy, but in the beginning, it will be a slow growth. The majority of premiums in the early part of the policy goes to paying the agent’s commission and insurance costs. However, the cash value will steadily grow, usually with a guaranteed minimum rate.

Some whole life will pay dividends, and, because these dividends are considered the return of the premiums, they are also not taxed. There are several options with whole life.

– Joint and Survivor

Joint and survivor insurance is a type of whole life that covers more than one person. This usually extends to couples, but not necessarily. The difference is one pays in the event of the death of the first one to die. The other only pays when both parties are dead. Joint and survivor policies usually have a lower premium due to the longer period of time before the payout is called for.

This type of whole life is meant largely for estate taxes, as they can be delayed until both husband and wife have died.

– Family income policies

These combine decreasing term and whole life and provide monthly payments from the time of the insured’s death to some point in the future.

– Modified Whole Life

For the first part of the policy, usually five years, it costs slightly more than term life but then becomes slightly higher than a standard whole life policy would have been at the start.

– Graded Premium Whole Life

This policy starts with low premium which gradually increases annually until they level out.

– Vanishing Whole life

This policy uses the dividends accumulated over time to pay the premiums.

– Single Premium Life

This is paid in a single premium to pay for a benefit in case of death. This is a policy that must be entered into carefully, as it must meet the 7 – pay requirements of the IRS or be subject to penalties for early withdrawal penalties which are considered taxable.

– Credit Life

This policy is designed to pay off a loan debt upon death thus ensuring your family is not burdened with loan debt.

Universal Life Insurance

Universal Life Insurance, like whole life, provides death benefits and has an accumulated cash value. Universal life is more flexible than whole life, as the insured is allowed to decide how much of the premiums go to death benefits and how much to cash value.

– Variable Life Insurance.

This is another form of permanent life insurance, much like universal, but the policyholder can take advantage of different options for investments. Being able to take advantage of these opportunities means a greater return, but it also entails a greater risk. The returns are based on the performance of the equities market. With variable life insurance, the death benefit can increase or decrease, but will not go below a minimum asset at the time of purchase.

While the types and subtypes of insurance can be daunting, there are as many policies as there are needs. Check with your agent and be sure to do your own research. Only you can determine your needs now and in the near future.

Who Needs Life Insurance?

You’ve just graduated from school, you’ve got a job. In the eyes of the world, you’re an adult now, and that means dealing with adult things. One of those things is a life insurance policy.

Chances are you’ve already been asked about buying one. Welcome to adulthood! From here on out, life insurance is going to be a constant question. So what are you going to do about it?

The first thing you need to ask yourself is whether or not you even need life insurance. What’s interesting to note is that your answer to this question is going to change as you grow older, depending entirely on your income, lifestyle, family life, and even what your short-term and longterm goals are in regard to insuring yourself.

Other Details

- 10 Articles (PDF)
- 1 Ebook (PDF), 29 Pages
- Posters, Infographic, Checklist, Mini Report
- Year Released/Circulated: 2018
- File Size: 100,176 KB

License Details:

[YES] Can use

[NO] RESELL OR GIVEAWAY