Everything About Life Insurance

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Everything About Life Insurance
Everything About Life Insurance

Everything About Life Insurance

Everything About Life Insurance, you should review your beneficiaries once a year and your policy approximately once every 2-3. year. This is free! You need to make sure that the recipients are the people/persons you want to get paid for!

Divorce, death, a disagreement, or the like can make you change your mind about a particular person to receive the benefit, so make sure you have the right people, property/trust, AND / OR organization (preferably non-profit) to receive the benefit. Everything About Life Insurance.

In addition, you should review every 2-3 years because many companies may offer a lower premium OR raise the benefit if you renew your policy or if you find a competitor who sees that you have paid the premiums can compete for your business. Either way, this is something you should consider to either save money or raise the policy amount! This is a win-win for you, so there should be no reason not to do this.

Everything About Life Insurance
Everything About Life Insurance

3) Life insurance agent or broker, what is the difference ?:
The biggest difference is that an agent is usually an independent salesperson who usually works with different insurance companies to give the client the best possible policy while the broker works for a particular company. My personal advice: Always choose an agent. Everything About Life Insurance.

Not because I myself am one, BUT because an agent can look to your advantage by providing different offers, types, riders that are available (explained later), AND pros/cons regarding each insurance company. If you do not like a particular insurance company, tell the agent and he should move on to the next carrier (if he continues for some strange reason, fire him). Everything About Life Insurance.

Buyer’s CAUTION: The agent must be paid for by the chosen provider, not specifically by you. If an agent asks for money in advance for something, RUN! There are also insurance consultants that you pay for, but to keep things simple, contact an agent. Consultants and agents are also good at reviewing current policies to lower premiums or increase benefits.

4) Types of policies:
There are 2 main categories: Term Insurance and Permanent Insurance. Within each of the 2 categories, there are subcategories. I will explain them in a moment so that you can make the best possible choice for you and your loved ones. Remember, you can have property/trust or an organization as a beneficiary. Everything About Life Insurance.

Forward insurance: A temporary policy where the beneficiary is only paid out on the death of the insured (you) within a certain period of time (hence the word “Term”). Forward insurance is usually cheaper with a smaller death benefit. Some do not require medical examinations, BUT expect to pay a higher premium as the risk to the insurance company is unknown.

Everything About Life Insurance,  Also, period insurance does not usually accumulate cash value (explained in permanent insurance), but can be purchased on top of your permanent policy (for those who may already have coverage):

Convertible period: Possibility to convert the policy to permanent. There are some REALLY GOOD insurances that do not require any medical examination, driver history, or dangerous activities at any particular time to convert to permanent coverage guaranteed with all the benefits that permanent insurances have to offer.

Renewable term: Able to renew a term policy without proof of insurance.

Level period: Fixed premiums over a certain period that increases (great for those who are young adults and expect to get an increase in salary within 10 years).

Increasing/decreasing maturity: The coverage increases or decreases during the maturity, while the premium remains the same.

Group Term: Usually used for employers or associations. This covers more people to reduce the premiums. (Great for small business owners)

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Permanent insurance: As the name suggests, this provides coverage throughout the life of the insured. This also builds cash value, which is great for tax purposes because if you lend money to yourself by using this cash value, there are no tax consequences. Few insurance policies can have generally tax-free withdrawals.

Everything About Life Insurance,  But in most cases, if you raise the cash value, you only pay the taxes on the premiums (the amount that grew), which is great. Just make sure your agent knows that the cash value should not grow greater than the death benefit, otherwise it is subject to 10% tax!

Everything About Life Insurance, Submission fees may also apply when you retire, PLEASE consult an agent who can assist you with these details. You should consider permanent insurance if you have a family and do not mind an increase in the premium (the amount you pay) by a few dollars over the term.

 

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