by webcadet » Thu May 20, 2010 11:10 am
There are a wide range of life insurance products that are floating in the market. Choosing the right life insurance policy involves assessing your particular situation and evaluating the right policy for you.
There are two types of life Insurance
1. Term Life Insurance
2. Permanent Life Insurance
Term Life Insurance:- Term Life insurance is life insurance that you purchase for a specific length of time, usually 5, 10 or 20 years. At the end of the term you are given the option of renewing the policy.
Permanent Life Insurance:- There is no fixed time limit to Permanent Life insurance, so long as you keep making your monthly premium payments the contract between you and the life insurance company remains in effect.
Three things always needed to be considered
1. cost of a funeral
2. the effect of your loss of income on your family
3. the amount of debt that you family will be faced with upon your death
It’s always good to take advice of Financial Analyst or Insurance agent who can help you to know your right amount and affordable premium. There are many online resources from where you can get FREE quote
Try this out
linkpe this helps
There are two types of life Insurance
1. Term Life Insurance
2. Permanent Life Insurance
Term Life Insurance:- Term Life insurance is life insurance that you purchase for a specific length of time, usually 5, 10 or 20 years. At the end of the term you are given the option of renewing the policy.
Permanent Life Insurance:- There is no fixed time limit to Permanent Life insurance, so long as you keep making your monthly premium payments the contract between you and the life insurance company remains in effect.
Three things always needed to be considered
1. cost of a funeral
2. the effect of your loss of income on your family
3. the amount of debt that you family will be faced with upon your death
It’s always good to take advice of Financial Analyst or Insurance agent who can help you to know your right amount and affordable premium. There are many online resources from where you can get FREE quote
Try this out
linkpe this helps
Posted: Thu May 20, 2010 11:16 am Post Subject:
web...do NOT post links in your posts...please read and adher to our terms of us..failure to do so will result in banning from this site, I have sent you a pm, please read it.
Posted: Fri May 21, 2010 08:52 am Post Subject:
Permanent Life Insurance:- There is no fixed time limit to Permanent Life insurance, so long as you keep making your monthly premium payments the contract between you and the life insurance company remains in effect.
Not exactly true. All life insurance, term or cash value, has a stated end or "maturity" or "endowment" date/age. Cash value policies issued sometime after 2002-2009 depending on the state (under the 2001 CSO Mortality Table) are going to have maturities at age 120 or 121. Older CV policies will end at age 100.
Posted: Fri May 21, 2010 08:16 pm Post Subject:
Max, your response isn't exactly true or more accurately, it doesn't tell the whole story. They do have an age at which they endow. The important issue is what happens at this age. It depends upon the state and the specific policy.
The state and the policy will determine whether there is a payout when it endows or whether one can keep it in force until death. Obviously, there is a big difference in taxes.
Posted: Fri May 21, 2010 08:17 pm Post Subject:
Also, plenty end at an age other than 100.
Posted: Fri May 21, 2010 08:18 pm Post Subject:
I should have said that plenty endow at an age other than 100.
Posted: Wed May 26, 2010 02:42 am Post Subject:
As fal...etc. has stated, not all contracts will endow and end. Some ULs in particular are not designed to just endow and pay out a lump sum. And yes, as has been stated, this makes for different taxable consequences.
Posted: Wed May 26, 2010 05:08 pm Post Subject:
The state and the policy will determine whether there is a payout when it endows or whether one can keep it in force until death
By definition, if a policy "endows" its cash value will be paid out to the policyowner. A whole life policy's cash value will be the face amount of the policy less any unpaid loans and/or loan interest. UL/EIUL/VL/VUL policies cannot, by definition, guarantee any cash value at an "endowment" age or at any other time during the lifetime of the insured -- they can only promise a death benefit if the insured dies while the policy is in force.
What may be true in some UL or other interest-sensitive policies is that the contract reads something like, "This policy will be in force throughout the lifetime of the insured . . . " and may discuss the cessation of premium payments or other deductions for COI or policy expenses from cash value after age 100 in older policies or age 120/121 in newer policies. Those policies might omit any reference to "endowment" or they might describe an endowment age/date (i.e., the next policy anniversary date following the insured's age 100).
Yes, while some policies don't mention an endowment age/date, most cash value policies do describe such a terminal date for the contract.
Posted: Wed May 26, 2010 05:17 pm Post Subject:
UL/EIUL/VL/VUL policies cannot, by definition, promise any cash value at "endowment" or at any other time during the lifetime of the insured.
That's not entirely accurate. UL based products can guarantee cash values based on guaranteed minimum interest rates and guaranteed expenses (there is a limit).
Though to be clear, there is not a guaranteed rate of return associated with UL like Whole Life, which is for endowment purposes.
Posted: Wed May 26, 2010 05:27 pm Post Subject:
UL based products can guarantee cash values based on guaranteed minimum interest rates and guaranteed expenses
You're right, my comment was a bit too generalized . . . but one must acknowledge that the guarantee is also, ultimately, $0 long before a UL policy would ever get to any endowment age in that same worst-case scenario.
The best a person can do to know what their actual cash value is in a UL policy is request an in-force illustration to see what's there today, because the cash value illustration in a UL policy is not the same as the "Table of Guaranteed Values" in a WL policy.
Posted: Wed May 26, 2010 07:58 pm Post Subject:
"All life insurance, term or cash value, has a stated end or "maturity" or "endowment" date/age."
Max, you are the one calling this end date an "endowment" age. If your definition of endowment means that a policy must pay out, many policies don't endow.
Whether you want to use the term "endow" or not, like I said before, it depends upon the state and the policy whether the policy pays out at that point. Most states don't require a payout, but some do.
I'm using the term "endow" to mean the point in time at which the cash value equals the death benefit.
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