Life Insurance, often the most important type of insurance a person or business can own. Anyone whose income supports other people should buy life insurance to protect the lifestyle of those who rely on that financial support. There are many misconceptions about the differences between term life insurance and whole life insurance, and knowing the differences can help a person make a more educated and informed decision about which type is appropriate for his / her situation.
Term, life insurance that only lasts for a specified period of time, or term. The most common term durations are 10, 20 and 30 years. If the insured person dies while the policy is still in effect, the chosen beneficiaries will receive the pre- selected sum. At the end of the term, the policy essentially expires, and the insured person no longer has insurance. Life Insurance Quote
Return of Premium (ROP) Term Life, Term Life with a "new twist" Return of Premium has a little higher premium than Level Term Life and Cheaper than Whole Life. Term Life Insurance Coverage with level premiums, except if you outlive the coverage you receive all paid in premiums refunded to you at the time of your R.O.P. Term Life policy expiring. Example: 10 year level term policy at $50.00 a month in 10 years you would get all your paid in premiums refunded $600.00 annually for 10 years gets a refund of premiums of $6,000. If you don't outlive the coverage, your beneficiary gets the face amount of the policy, coverage amount.
For a quote contact Battistone Insurance Group 281-391-3133
Permanent, life insurance, such as whole life or endowment, where the sum assured is due to be paid out at the end of the policy (assuming the policy is kept current) and the policy accrues a cash value. This is contrasted with Term life insurance where insurance is purchased for a specified period (such as 5, 10, or 20 years) and a benefit is only paid out if the insured dies during this period. The earliest form of permanent life insurance was offered in the 18th century as a fixed premium fixed return product known as whole life insurance. "Variable life insurance" or "linked life assurance" is similar, but the benefits are more directly linked to investment performance, thus shifting some risk to the policyholder.
Whole Life, also referred to as Universal Insurance designed to last forever, the insured person is covered for the pre-defined benefit amount for the rest of his life as long as the policy is in effect. From that point on, upon the death of the insured person, the insurance company will issue a check for the death benefit amount to the beneficiaries.
Endowment policy, a life insurance contract designed to pay a lump sum after a specified term (on its 'maturity') or on death. Typical maturities are ten, fifteen or twenty years up to a certain age limit. Some policies also pay out in the case of critical illness.Policies are typically traditional with-profits or unit-linked. Endowments can be cashed in early (or surrendered) and the holder then receives the surrender value which is determined by the insurance company depending on how long the policy has been running and how much has been paid in to it.
Burial/Guaranteed Life Insurance- Life insurance is available to most everyone, always comes down to how much coverage you want and how much you are willing to pay.
For a quote contact Battistone Insurance Group 281-391-3133
Aside from the obvious death benefit that is the main feature of all life insurance policies, there are several other less obvious features that might be the deciding factor between purchasing a term or whole life insurance policy.
Whole Life insurance policies have a feature not found in term insurance policies that attracts many people. This feature is cash value accumulation. In whole life insurance policies, a portion of the premium paid by the owner is set aside every month in a separate account inside the policy. These small sums accumulate through the years, and the total amount is accessible to the policy owner in the
form of a loan.
Term Life insurance policies often contain a contract provision that allows the policy owner to convert the policy into a form of permanent life insurance without the need for additional medical underwriting analysis. This feature is often advantageous to the policy owner because many people would not be able to qualify for preferred underwriting status after one or two decades.
Consider the duration of the policy versus the premium payments. Term policies usually have lower premiums because there is a chance that the insurance company might be able to collect payments and not have to pay out a significantly larger death benefit. With these smaller premium payments comes a shorter duration of coverage and the possibility of being without coverage when the policy ends. Permanent life insurance policies usually cost more, but the owner knows that he will never be without coverage.
Many people who purchase whole life insurance find their policies in danger of lapsing because of insufficient cash values. One of the most common misconceptions regarding permanent life insurance policies is that the cash value is insignificant with respect to the inner workings of the contract. Actually, the cash value account is necessary to supplement the owner's premium payments in the policies later years. If the owner withdraws this value and does not replace it, the policy will require additional funding from the owner in order to stay in force. Cash value accumulation is only a secondary feature of a permanent life insurance policy and should not become the main focus when considering buying a policy.
Life insurance is a powerful component to any family or business financial plan. Life insurance can be the foundation for ensuring that a family is able to maintain its style of living in the event of the untimely death of the breadwinner. Life insurance proceeds can be used to pay for final expenses, continue making regular debt payments and create college savings accounts for surviving children.
NON-Paramed Life Insurance- often the only thing preventing getting the life insurance policy completed is getting the paramed exam. As simple and accommodating as the carriers try to be often this is the largest stumbling block. Due to the need to accommodate those just not able to get the paramed exam completed we now have a non paramed Term Life Insurance Policy up to $250,000 and a Whole Life Insurance policy up to $100,000. both will require underwriting.
The payoff for Life Insurance is a gamble-a gamble as to whether you might outlive your policy. Prefer the certainty of getting your investment back- we have the policy for you. If you have a "full house" and need to make sure in the event of your death your family is cared for then you need to consider- Return of Premium (ROP) Term Life Insurance with a "new twist" A little higher premium than Level Term Life and Cheaper than Whole Life Insurance Coverage with level premiums, except if you outlive the coverage you receive all paid in premiums refunded to you. A no risk term life policy. Example: 10 year level term policy at $50.00 a month in 10 years you would get all your paid in premiums refunded$600.00 annually for 10 years gets a refund of premiums of $6,000. If you don't outlive the coverage, your beneficiary gets the face amount of the policy, coverage amount. Term Life Insurance (ROP) Carriers •West Coast Life/Protective •Gen Worth •North American •Chase •Alliance •Americo •MG Return of Premium (ROP) Whole Life Works the same as the Term Life (ROP) with the option after completing the term of the life insurance policy the option to get refunded all premiums paid in is available. However, the mechanics of the Return of Premium Life is as a Whole Life Insurance plan. Battistone Insurance Group is licensed with: Americo for Return of Premium Whole Life Insurance
Battistone Insurance Group 281- 391 3133