When you consider the advantages of whole life insurance
policies I hope you will conclude that this is life insurance
worth owning. I have no objection to term life insurance and
even owned some when I was much younger. Each type of policy has
it’s place and it’s own function. I cannot, for the life of me,
understand why some people never have appreciated this. I refer
to the term advocates who seem to hate the thought of buying a
whole life policy.

The First Of The Advantages Of Whole Life Insurance Is The
Death Benefit

The whole life insurance policy assures you a guaranteed death
benefit that never decreases and upon death is usually free of
federal income taxes. If you choose you may take the death
benefit in the form of a monthly income instead of a lump sum.

The Premiums Remain Level; Another Of The Advantages Of Whole
Life Insurance Policies

When you buy a whole life policy the premium you start out with
is the premium you will always pay. It never increases. If you,
however, decide to use your dividends to reduce premiums you
will pay a much lower premium than you contracted for.

Whole Life Insurance Policies Have Cash Values

Another of the advantages of whole life insurance are the cash
values. They can be borrowed by the policy owner for whatever
reason he or she should choose. If you should decide to
surrender your policy at any time you receive your cash values.
These cash values accumulate tax deferred.

Participating Whole life Insurance Policies Earn Dividends

If you own a participating whole life insurance policy you
automatically become eligible to earn dividends on your cash
values if the company performs well, which they usually do.

These dividends can be paid to you in cash, can be used
to purchase paid up additions, to reduce premiums
or they can be left to accumulate at interest.

Certainly these are worthwhile advantages of whole life
insurance. There are many, many more…

Whole life insurance even though it is not the least expensive
life insurance policy you can buy can still fulfill the needs of
some. Why some people have such an aversion to this policy I
will never understand. Term insurance is also good insurance and
can fit into more situations than whole life because of the low
cost. More people can afford it. Both types of life insurance
serve the same purposes, however, when you buy whole life
insurance you get some additional benefits that term life
insurance does not provide. Let us take a look at the whole life
insurance policy and it’s benefits.

Level Premium

Whole life insurance has a fixed level premium which never
increases for as long as you own the policy. When you pay a
whole life premium a portion goes to pay for the death benefit
and a portion is applied to cash values. In the initial years a
portion of the premium is also applied to administrative costs.

Death Benefit

Like any other life insurance policy the whole life insurance policy has a guaranteed death
benefit which can be paid either in one lump sum or in the form
of a monthly income. This death benefit is usually paid free of
federal income taxes. There are several income options including
a life income, an income for a fixed predetermined period and an
income for a fixed amount. The insurance can also keep the
principal and just pay the interest. The principal is paid upon
demand.

Cash Values

The whole life insurance policy contains a guaranteed cash value
which accumulates tax deferred. If you are ever in need of cash
you may borrow from your cash value. You don’t need to tell the
insurance company why you want the money and you pay back the
money at your convenience.

Dividends

Cash values earn dividends which depend on the performance of
the company. these dividends are not guaranteed. They can be
taken in cash, can be left to accumulate interest, can be use to
reduce premiums or they can be used to purchase paid up
additions. Paid up additions on a whole life insurance policy is
a fully paid up whole life policy. These paid up additions have
cash values and also earn dividends.

There are many riders you can add to your whole life insurance
policy. The two main riders are the waiver of premium benefit
and the accidental death benefit rider also known as the double
indemnity rider.

Waiver Of Premium.

If the insured should become disabled, any time after six months
of disability the life insurance company will step in and pay
the premiums even if the disability lasts for the lifetime of
the insured.

Accidental Death Benefit

If the insured person should die in an accident, for example an
automobile accident, the life insurance company will pay twice
the death benefit. If you have a policy for $100,000, and you
have the accidental death benefit rider, the insurance company
will pay $200,000 to your beneficiary.

The above benefits may be worth the extra premium you would pay
for a whole life insurance policy.

There are different types of life insurance policies available. Shop around and compare policies to ensure that you receive the best deal possible. This sounds obvious, however, there are dozens of different types of life cover plans available and it is important that you select the right one for your circumstances.
Life Insurance is insurance that provides protection against the economic loss caused by the death of the person insured. There are several types of Life Insurance, each having different characteristics. Some of the key types of Life Insurance are: Term Life, Whole Life, Burial Insurance, Survivorship Life, Universal Life, and Variable Life Insurance. Outlined below is a useful description of each type:
Term Life Insurance
Term Life Insurance is the lowest cost and simplest product available. Term insurance is a life insurance contract that provides protection for a limited number of years. The death benefit is only payable if death occurs during the agreed-upon term. There are various types of Term Insurance Life Policies:
Level Term Life Insurance
Means that your premiums are set at a level at the beginning of the contract and do not move up or down. The sum assured will remain the same throughout the term.
Increasing term insurance
This is a fixed term policy where the sum assured will increase, either by a set percentage or by the Retail price index (RPI) throughout the policy term. Your premiums remain level throughout the term if the sum assured rises by a set percentage, or will rise according to the RPI if the sum assured does the same.
Renewable term insurance
This is policy lasting for a smaller period, usually five years, which can be renewed, although the sum assured cannot be increased, whilst the premiums will increase with age.
Renewable increasable term insurance is the same as above but provides for an increasing sum assured.
Convertible term insurance
Provides the option to convert parts of the sum assured to whole of life, endowment or further term assurance without further medical evidence.
Decreasing term insurance
Is where the sum assured decreases over time; hence, the premiums are set lower. This is commonly used to cover a mortgage.
Whole Life Insurance
Life insurance that remains in force during the insured’s entire lifetime, provided premiums are paid as specified in the policy. Whole life insurance also builds a savings element (called the cash value) as a result of the level premium approach to funding the death benefit.
Burial Insurance
Burial Insurance, or Final Expense Life Insurance, is essentially a whole life product with small face values. The application process is simple and does not have the associated medical requirements of other policy types. This type of life insurance is also referred to as a simplified issue or guaranteed issue policy.
Survivorship Life Insurance
A type of whole life insurance which insures two people and pays benefits only after the second person dies. It is generally designed to provide funds to pay estate taxes.
Universal Life Insurance
An unbundled whole life insurance product in which the mortality, investment, and expense factors used to calculate premium rates and cash values are expressed separately in the policy. In a universal life insurance policy, any applicable expense charges are deducted from the premium and the remainder of the premium is then credited to the policy’s cash value. Each month the insurer deducts the mortality costs from the cash value and credits the remainder of the cash value with interest.
Variable Life Insurance
A form of whole life insurance under which the death benefit and the cash value of the policy fluctuate according to the investment performance of a separate account fund. Most variable life insurance policies guarantee that the death benefit will not fall below a specified minimum. A minimum cash value is seldom guaranteed.
You may freely reprint this article provided the author’s biography remains intact:

While our business prospers we often cannot see ourselves ever lacking money.
Most of us reason that as long as we keep working, making sales, and satisfying customers, our businesses will continue to prosper.
And if our business slows down, or fails, we can always seek 9-5 employment.
But how many of us consider another alternative?
What if we are no longer around?
Would our families be able to enjoy a decent standard of living without the income we generate?
If the answer is no, then we should consider the benefits of having life insurance.
A life insurance policy can provide a decent source of financing for a family that has lost their breadwinner.
While life insurance can be expensive for some, there is another alternative to consider.
Term life insurance does not generally provide a cash build up value, but it can provide coverage at a substantially lower price.
By purchasing term life insurance you can also free up cash flow which you can reinvest in your business. Since term life insurance is substantially cheaper than life insurance, you can use the money you save to continue building up your business.
In essence, term life insurance is an agreement between you and your insurance company. In exchange for monthly payments the life insurance company will guarantee a death benefit to your survivors.
Term life insurance does have a downside, which is the lack of a cash value. But on the other hand, as a business owner, you might be able to obtain a better return on your money from investing your money in your business.
Term life insurance is also highly affordable, with term policies being available for as little as $20 a month, and guaranteeing a death benefit of up to $150,000.
Before making a purchase of any term life policy make sure to research the ratings of the life insurance company.
You want to ensure that the company will be in business 15, 20, and even 30 years from now.
When it comes to term life insurance, the Internet is your best research tool. Many insurance sites will give you instant quotes and let you compare different life insurance companies.
You can read up on term life insurance, and receive a free quote, by visiting http://www.americanlifedirectonline.com
Donny Lowy is the CEO of http://www.closeoutexplosion.com an online wholesale and closeout business.

If you are looking for inexpensive life insurance may be the 10 year term life insurance policy would fit your need perfectly. This is life insurance in its simplest form. The policy contains a guaranteed death benefit from the outset and a guaranteed level premium. After the initial 10 years some life insurance companies allow you to renew the policy for an additional 10 years at an increased premium. This 10 year term policy provides you with ample insurance for small outlay over a fairly short period of time.
Policy Death Benefit
If you are the proud owner of a 10 year term life insurance policy. If you should die within 10 years of your ownership of this policy the full face amount is paid to your beneficiary, either in a lump sum or in the form of a monthly income. The monthly income may take one of several different income options. You may choose to take a life income with no certain period. After the beneficiary begins receiving the income if s/he should die suddenly that would be the end of the income. No one would get anything more from that 10 year life insurance policy. It does not matter if the income is paid only for one month. There are other options that would assure you, however, that would assure your beneficiaries more of a pay out.
You could choose to pay them a life income with a 10 or 20 year certain. This would guarantee that the income is paid for 10 or 20 years respectively. You could choose a fixed period option which would guarantee that the income is paid out for a fixed period, example 20 years or you could use the interest option, which would keep your principal in tact and pay only interest to beneficiaries for a specific period of years. At the end of this period the principal would be paid.
Term Insurance Conversion Privelege
Most term insurance policies have built in a conversion privelege. The 10 year term life insurance policy is no exception. This is because term insurance is temporary insurance and people usually have a permanent for life insurance. You can convert your policy usually to any permanent policy within a specific period of time. Some companies limit your conversion period to 8 years, whereas others may allow the policy owner the full 10 years.
Available Riders To Your Policy
There are certain riders that you can add to your 10 year term life insurance policy which would tremendously increase it’s value to yourself and your beneficiaries. You may add the waiver of premium disability rider. If you should become disabled, anytime after 6 months of disability, the life insurance company will pay your premiums for you even if it is for the entire duration of the policy. Now, isn’t that just great?
Another rider that you can add is the accidental death benefit rider. This is sometimes referred as the double indemnity rider. If you should die in an accident the life insurance company will pay double the death benefit to your beneficiaries.
Minimums And Maximums
There are certain minimum and maximum amounts of 10 year term life insurance that insurance companies will be prepared to issue on an applicants life. This may vary by age and medical history. Some companies may be prepared to issue between $20,000 and $1,000,000, others may start at 100,000 and go as high as $10,000,000 or $20,000,000.
Living Benefit Riders
The aids virus brought about a fairly new idea which many life insurance companies have adopted. Because of a tremendous need for additional cash terminally ill people may sell their policy to investors for a percentage of its value. As an alternative you can add a rider to your policy which would allow you to withdraw a portion of your death benefit during your lifetime. This is called a living benefit rider. It would serve to ease the pressure on the terminally ill and their families.
Spouse And Child Term Riders
Many insurance companies offer the opportunity for you to add a comparatively small term life insurance rider on the life of your spouse and children. These riders are usually 5 year term or 10 year term riders which work out to be less expensive than had the policies been bought separately.
Click on the link below to learn more about 10 year term life insurance and other similar types of life insurance.
For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and best life insurance companies in the United States as well as Canada. His advice is invaluable.
Donald’s website is: http://www.lifeinsurancehub.net

What is term life insurance? You have an interest in buying term
life insurance, that is why you are reading this article, and
you want to know how it really works. Right? Well, there are
many types of term life insurance and I am going to give you a
brief explanation as to how each one works.

Decreasing Term Life Insurance

Decreasing term life insurance is very popular with home owners
and mortgage companies. The homeowners want to know that the
mortgage is paid off if they should prematurely die, and the
mortgage company want to be assured that they are repaid the
money loaned to the homeowner. The face amount of these policies
decrease in a uniformed manner each year as the balance owed on
the mortgage decreases, and the premium remains level. This is
very inexpensive life insurance.

Increasing Premium Term Life Insurance

This is initially the cheapest term life insurance you can buy.
The death benefit remains level for the duration, however, the
premiums increase every year and as a result this may turn out
to be the most expensive term life insurance you can buy. If you
should purchase this policy it would be wise to convert to a
level plan as quickly as possible.

5 Year Level Term Insurance

The face amount of this policy remains level for the entire 5
year period and so does the premium. Upon death the face amount
is paid either in one lump sum or in the form of an income. If
you have a short term need for life insurance, like covering a
bank loan, then this may be the plan for you.

10 Year Term Life Insurance

Like the 5 year term life insurance policy, the ten year term
life policy can be used to cover a bank loan, but it can do
considerably more. It can be used for family protection and a
myriad of other needs. The face amount of the policy remains
level for the duration and so does the premium. Some companies
allow you to continue the policy after 10 years with an increase
in premium.

20 Year Term Life Insurance

The 20 year term life insurance policy is probably the most
popular of term life policies. The death benefit remains level
for the duration and in some cases so does the premium. With
some companies, however, the premiums increase after the first
10 years to reflect the cost of the additional risk to which the
insurance company is exposed as the insured gets older. All in
all, the 20 tear term life insurance policy is fairly
inexpensive and does the job it is intended to do.

Unlike whole life insurance, universal life insurance or
variable life insurance, term life insurance does not have cash
values or earn dividends. There is a fairly new type of term
life insurance policy, however, called a return of premium
policy which returns all your premiums at the end of the term
period, if you do not die. The premiums are so high it may not
be worth your while to buy this type of term policy.

It is not too difficult to find affordable term life insurance. There is so much competition between life insurance companies to keep down rates that almost all term life insurance premiums are affordable for most buyers of life insurance. The thing that you need to pay attention to is the life insurance company you deal with.
Most life insurance companies are reputable because of the strict regulations in the United States and throughout the world. The safest companies to deal with, however, are the larger ones. They did not get there by being unethical. Check out their ratings with A. M. Best, Moody’s and Standard and Poors.
Let us now look at the most affordable life insurance policies and see what people use them for.
Decreasing Term Life Insurance
The creation of this policy was like a special gift to the homeowner. This is one of the cheapest policies you can buy…but it has a specific purpose. It is believed that it was designed to pay off the balance owed to your bank or mortgage company in the event of your death. The thing that makes it so cheap is that the death benefit decreases with, or close to, your mortgage balance. Therefore, when you die your family will own a home free and clear. There are no mortgage payments to make.
Increasing Premium Term Life Insurance
Another affordable term life insurance policy is the increasing premium term life insurance policy or yearly renewable term as it is sometimes called. When you buy this policy you are really purchasing a one year term policy with the option of continuing it for additional years without having to prove that you qualify physically for it. As a result of this you begin with what is probably the lowest premium that you can get. Because your premiums increase every year this policy could turn out to be quite expensive after a number of years. If you therefore have a short term need for life insurance this policy may suit you just fine.
5 Year Term Life Insurance
The 5 year term policy has a guaranteed premium for 5 years and also a death benefit that is guaranteed level for the duration. Although it costs a little more than the decreasing term and the increasing premium term the premiums are still ridiculously inexpensive. This policy is also used for short term needs. If you are thinking long term you should convert to permanent insurance when you are able.
10 Year Term Insurance
If you take the time to check out the rates on the 10 year term policy you will also discover that this is a very affordable term life insurance policy. The premiums remain level for 10 years and so does the death benefit. This policy is also used for short term needs but is used sometimes like a stop-gap. You buy the policy because you cannot afford what you really want at this time. You convert to the one you prefer when you find yourself in a better financial situation.
20 Year And 30 Year Term Life Insurance
People just love to buy these policies because they are affordable term life insurance policies and they can be used in most situations where there is a need for life insurance. The premiums are guaranteed to remain level for the duration…20 years or 30 years. The death benefit is also guaranteed level. These policies are used to protect families in case the breadwinner dies prematurely. Business people use them also to fund buy-sell agreements and for key employee, or key man, life insurance.
For more than 40 years Donald has been known for his extensive knowledge of the life insurance business. He has represented some of the largest and best life insurance companies in the United States as well as Canada. His advice is invaluable.
Donald’s website is: http://www.lifeinsurancehub.net

If permanent insurance with flexible premiums and options is important to you, youย’ll want to choose a variable universal life insurance policy. This type of policy combines features of universal life insurance with investment options, so you have the potential for a larger death settlement than you would have with an ordinary policy. It is called a variable universal life insurance, because your investments and premiums are not fixed. They are variable because they depend on the current market conditions.

Variable universal life insurance has advantages over other life insurance policies, such as Globe Life Insurance or whole life insurance. With this type of life insurance you get to play the stock market and choose the investment funds where you want to put your money. With universal life insurance on its own, you canย’t control how your cash value is invested. When you combine it with variable life insurance, you can switch investments two or three times a year if you wish to get a higher life insurance settlement.

As with 30 year term life insurance and others, you do have a guaranteed death benefit. This amount could rise drastically if you have the right investments with a variable universal life insurance. The amount of the cash settlement varies, so that you could have lots of money one day and the minimum life insurance settlement the next.

The life insurance cost associated with variable universal life insurance is higher than other types. However, along with this comes the advantage that you have a tax shelter. The money you make through investments will not be taxed until you cash in the policy. The monthly premium you pay also varies, depending on market conditions. This may not appeal to you if you are on a fixed income and have to budget for the premiums.

Variable Universal life insurance is not for everyone. If you want to make sure that there is a death benefit to protect your family in the event of your death, then maybe you should look at a 30 year life insurance or ask for a whole life insurance quote. This way your money is guaranteed and you donย’t run the risk of losing it. The way market conditions are operating today, the many falls seem to indicate that the cash value of the life insurance policies are falling as well. Itย’s better to be safe than sorry.

Variable universal life insurance gives you choices.

If you are looking for inexpensive life insurance may be the
10 year term life insurance policy would fit your need
perfectly. This is life insurance in its simplest form. The
policy contains a guaranteed death benefit from the outset and a
guaranteed level premium. After the initial 10 years some life
insurance companies allow you to renew the policy for an
additional 10 years at an increased premium. This 10 year term
policy provides you with ample insurance for small outlay over a
fairly short period of time.

Policy Death Benefit

If you are the proud owner of a 10 year term life insurance
policy. If you should die within 10 years of your ownership of
this policy the full face amount is paid to your beneficiary,
either in a lump sum or in the form of a monthly income. The
monthly income may take one of several different income options.
You may choose to take a life income with no certain
period. After the beneficiary begins receiving the income if
s/he should die suddenly that would be the end of the income. No
one would get anything more from that 10 year life insurance
policy. It does not matter if the income is paid only for one
month. There are other options that would assure you, however,
that would assure your beneficiaries more of a pay out.

You could choose to pay them a life income with a 10 or 20
year certain. This would guarantee that the income is paid
for 10 or 20 years respectively. You could choose a fixed period
option which would guarantee that the income is paid out for
a fixed period, example 20 years or you could use the
interest option, which would keep your principal in tact and pay
only interest to beneficiaries for a specific period of years.
At the end of this period the principal would be paid.

Term Insurance Conversion Privelege

Most term insurance policies have built in a conversion
privelege. The 10 year term life insurance policy is no
exception. This is because term insurance is temporary insurance
and people usually have a permanent for life insurance. You can
convert your policy usually to any permanent policy within a
specific period of time. Some companies limit your conversion
period to 8 years, whereas others may allow the policy owner the
full 10 years.

Available Riders To Your Policy

There are certain riders that you can add to your 10 year term
life insurance policy which would tremendously increase it’s
value to yourself and your beneficiaries. You may add the
waiver of premium disability rider. If you should become
disabled, anytime after 6 months of disability, the life
insurance company will pay your premiums for you even if it is
for the entire duration of the policy. Now, isn’t that just
great?

Another rider that you can add is the accidental death benefit
rider. This is sometimes referred as the double indemnity rider.
If you should die in an accident the life insurance
company will pay double the death benefit to your beneficiaries.

Minimums And Maximums

There are certain minimum and maximum amounts of 10 year term
life insurance that insurance companies will be prepared to
issue on an applicants life. This may vary by age and medical
history. Some companies may be prepared to issue between $20,000
and $1,000,000, others may start at 100,000 and go as high as
$10,000,000 or $20,000,000.

Living Benefit Riders

The aids virus brought about a fairly new idea which many life
insurance companies have adopted. Because of a tremendous need
for additional cash terminally ill people may sell their policy
to investors for a percentage of its value. As an alternative
you can add a rider to your policy which would allow you to
withdraw a portion of your death benefit during your lifetime.
This is called a living benefit rider. It would serve to
ease the pressure on the terminally ill and their families.

Spouse And Child Term Riders

Many insurance companies offer the opportunity for you to add a
comparatively small term life insurance rider on the life of
your spouse and children. These riders are usually 5 year term
or 10 year term riders which work out to be less expensive than
had the policies been bought separately.

Click on the link below to learn more about 10 year term life
insurance and other similar types of life insurance.

Before you can decide if whole life insurance is suitable for you, you will need to be well informed on the key aspects of whole insurance.
So, what is whole life insurance? Whole life insurance is so named because it’s designed to stay in force throughout your life. In the first few years, when you’re young, its cost will be low, so the bulk of the money goes to pay the agent and into an investment account. However, as you get older, the cost of insuring you increases, so less of your premium goes into the investment account. The money that goes into the account in the early years of your policy therefore grows. The cash value of your whole life policy is the amount you’d get if you decide to surrender it.
Whole life insurance policy’s premiums are guaranteed throughout the life of the policy and so is your death benefit. However, the cash value of the policy will vary with the insurance company’s investment performance. Normally, insurance companies invest the money that’s building you cash value fairly conservatively. This enables them to try to keep up with the numbers you saw in a policy illustration. However, this also means that returns under perform other investments, such as stocks or equity mutual funds.
It can take some time to accrue any real cash value with whole life insurance. To get some notable cash value, you will need to keep going with it for about ten to twenty years. It can actually take closer to twenty years before the gain begins to look impressive. For this reason, you will need to be cautious with any insurance agent who tries to convince you to swap one whole life insurance policy for another so called “better” policy just a few years after you made your original purchase. You wouldn’t have earned any cash value to speak of, and worse still, you may face high surrender charges for dropping the first whole life insurance policy. Some agents do this to keep their large commission checks coming in.
Here Are 4 Important Aspects To Consider With Whole Life Insurance Policies?
1. Commissions and expenses.
2. Cash value.
3. Dividends and interest.
4. The ability to adjust the death benefit.
4 Important Questions To Ask The Life Insurance Company
Before you commit to sign up for a whole life insurance policy, here are several questions you should ask an agent. These are just a few common questions to ask and some you may want to research yourself.
1. How much coverage do I need?
2. What type of insurance is best for me, whole life or term?
3. How can I get a discount on my life insurance policy?
4. What is your Standard & Poor’s ratings?
Fast online Internet access and the many web sites available enable you to easily compare and get quotes from several whole life insurance companies in a single day. Be sure to be honest with the health questions that you answer to get an accurate quote. Take time to decide what is best for you and your family.
Dean Shainin offers free online life insurance quotes. For more information, articles, news, tools and valuable resources on life insurance, visit this site: http://life-insurance.deans-knowledgebase.com Get free valuable online tips for saving money from his: Whole Life Insurance website.