Difference between term life insurance and permanent policies?
Question by nonfrump: Difference between term life insurance and permanent policies?
My insurance company is offering a term conversion credit if I switch to permanent insurance. What’s in it for them, and what is permanent insurance? Whole life? Any benefits for me to change?
Best answer:
Answer by w8nc
Term insurance is coverage for a limited time (5, 10, 15, 20, 30 years, etc.). After the term, the insurance no longer exists. Premiums paid are not usually returned either. Because of the term obligation, it is usually much cheaper.
Permanent insurance (“Whole Life”) is what it says it is… permanent. This insurance is guaranteed to pay a benefit as long as premiums are paid on time. This is more like an investment, because you get your money back and earn money on it. Although its return feature is like an investment don’t think of it as an investment. It’s main purpose is not to make money, but to provide a death benefit if needed. For this type of insurance, you get back whatever you put into it – “the cash value”- if you don’t use the death benefit and decide to cash the policy out. This insurance is much more expensive because of the guaranteed death benefit.
My advice, weigh your options. If you want to have a death benefit forever, whole life is the way to go. Make sure you have level premiums though, because at older ages your premium could climb drastically if it is not set as level. Also, coverting now might be a good idea because you won’t have to prove insurability (go through underwriting) in the future. However, if you only need the insurance to cover a term obligation (i.e. 30 year mortgage), keep the term insurance. It’s much cheaper.
Good luck – I hope this info helps.
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is there such a thing as joint life insurance?
Question by joe b: is there such a thing as joint life insurance?
I’m looking for a life insurance policy that insures 2 people with just 1 policy (like a husband-wife policy). So that if 1 dies, the survivor becomes the beneficiary.
I was thinking if we get 2 separate insurance policies, and 1 dies, all the previous payments of the survivor will just go to waste, since the beneficiary/spouse is gone.
Do y ou know what type of insurance this “joint” insurance is? Is there any life insurance company that offers this type of insurance?
Best answer:
Answer by Heinz M
It’s mutual insurance with the limits the same for both. ~
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can I use my cash surrender value to pay for my monthly premium on my life insurance policy ?
Question by : can I use my cash surrender value to pay for my monthly premium on my life insurance policy ?
I have about $ 12,000 cash surrender value on my Flexible Premium Multifunded Life Insurance policy. Can I use that amount to pay for my monthly premium?
Best answer:
Answer by Brion
yes, you can. it’s called different things by different companies (usually a “premium loan”)
contact your insurance company, as you’ll likely need to complete a form to process this request.
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Q&A: Can my fathers ex wife get back child support through his life insurance policy after he has passed away?
Question by tara: Can my fathers ex wife get back child support through his life insurance policy after he has passed away?
He passed away and his ex wife (my half sisters mother) is trying to get her money through his life insurance policy. Remind you he left this money for his KIDS. It has been 11 years since any legal action has been taken. Please help!
Best answer:
Answer by Marsha
The attorney should be able to answer this one. I believe it would be state specific.
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how can i get started or how can i become an independent broker for life insurance or other investment product?
Question by Tony N: how can i get started or how can i become an independent broker for life insurance or other investment product?
i would like to know how to become an independent broker so that i may have several options in presenting any life insurance or investment products. i am currently with a life insurance company but they are not the best for some of my clients.
Best answer:
Answer by rahnside
you don’t have to be a broker but you can only sell for non captive companies I know 2 guys at a nationwide broker house that can answer all your questions and get you setup with the right companies
the name of the company is Life and Annuity Masters @ 800-997-8661 ask for Denise or Mike and tell them Rahn told you to call
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Q&A: Check Cashing<How would they verify a check for 30,000 from a life insurance company?
Question by : Check Cashing
How would they verify a check for 30,000 from a life insurance company? i wanna go to my local check cashing office?
Best answer:
Answer by Emma Yorke
They will not cash a check for that much. You have to go to a bank and open up an account.
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Premiums of universal life insurance during recession?
Question by djstreet: Premiums of universal life insurance during recession?
I’m curious to know the experience of people holding universal life insurance during these downward market trends. How high have your premiums increased (or have they?) About what are you paying and for how much coverage? Happy or being ripped off?
Best answer:
Answer by car253
Universal life is not an investment. The ( cost of insurance) also called the mortality costs are set in stone when you buy the policy. The cost of the insurance goes up every year as you get older, just like an annual term life policy does.
What you are calling premiums is not that at all. The money your paying goes into a deposit account, just like a savings account. Out of that account the insurance company takes out the cost of the insurance every month. So you never know what the cost of the insurance really is because all you know is that you are making deposits into that account. Get it?
The interest you earn is suppose to grow or offset the increasing cost of the insurance in later years. If the interest drops that never happens. Feel ripped off yet? You should. Even life insurance agents do not understand how UL works.
Now you know more than most. Call your agent and ask them what your mortality costs is today. If they have no clue what a mortality costs is then you know they don’t know anything about life insurance. They might not have that info on their computer. They might have to check with their main office. But as long as they understand what I just stated I would know that they know something about life insurance.
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Q&A: Tax implications of Life Insurance Policy withdrawal for college?
Question by : Tax implications of Life Insurance Policy withdrawal for college?
I have been investing in a Flexible Premium Adjustable Variable Life Insurance Policy for 18 years and the time has arrived to withdraw some of the account value to pay for college tuition. How should I best pursue this withdrawal without causing an increase in income and additional tax implications?
Best answer:
Answer by waggy_33
If you borrow some of the cash value you would not have any income. The policy would probably still be in effect. Any interest you pay on the loan would not be deductible. At some point you would pay back the loan and you would also still pay the premium.
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I have some legal questions about life insurance policies?
Question by : I have some legal questions about life insurance policies?
My step father is in a nursing home. He can’t talk, and does not know anyone or respond to much. This march I was appointed, by the Courts, as Conservator and Guardian. I received in the mail a brochure from Mutual of Omaha a Pre Approved letter stating my stepfather could get 10k in life insurance, w/o any health checkups. As Guardian and conservator can i get this life insurance policy for him?
Best answer:
Answer by TCC
you can… However, it may not be a right thing to do. First of all, the rate maybe expensive, also the coverage may not suitable for him. Although it does not require health checkups, they will still ask questions that you will need to answer honestly. If you really want to get him life insurance, you should ask an qualified insurance agent rather than getting information from a direct mail piece. Hope this helps.
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do you have to pay a gift tax on a life insurance policy when I disperse some of the money to my siblings?
Question by : do you have to pay a gift tax on a life insurance policy when I disperse some of the money to my siblings?
My father recently died and I am the beneficiary of his life insurance policy. I am splitting it evenly between my 2 siblings. I know that I will not be taxed but when I cut checks to my 2 siblings will I have to pay a gift tax?
Best answer:
Answer by tummybulge
I believe that amounts under $ 13,000 are not subject to the gift tax , but check with your finanacial advisor to be sure .
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