article directory


Home | Top Editorials | Popular Content | Article Directory | Help/Faq's | Submit Articles | Account Login
Editorial Search







:: Main Articles :: Finance / Investing



Know The Differences In Life Insurance Before You Buy
Finance / Investing Author: Evan Povich
Know The Differences In Life Insurance Before You Buy
Thinking about purchasing life insurance online?

There are many kinds of life insurance coverage on the market now.

When you consider all the kinds of life insurance policies available as a whole you can break it down into basically two types:

Whole vs Term Insurance

Term Life Insurance is simple. It is basically pure life insurance. Nothing else. Just like auto insurance.

The more expensive route would be to buy whole life insurance.

It is set for a period of time so you can buy term life insurance in time increments of 1 year up to 30 years (may be more or less depending on the life insurance company that you buy life insurance from).

  •     Pure Life Insurance
  •     Of the two types of Life Coverage Term Life insurance is the cheaper of the two
  •     Sold in time increments of 1 year to 30 years
What term life insurance company to buy from?

Once you have decided you would like to have life insurance it is best to comparison shop through each quote for life insurance and retrieve several quotes to compare from different life insurance companies.

Check their financial credit ratings in the list of life insurance quotes. It's generally ABC's but there may be different symbols used depending on which rating system is used for life insurance companies.

Example: Highest Rating / Financial Strength Rating of Company:
  • Standard and Poor's: A++ (Secure/Superior)
  • A.M. Best: AAA (Extremely Strong)
  • Moody's: Aaa (Exceptional)
  • Fitch: AAA (Secure/Highest)
  • Acceptable Financial Rating Strength
  • Standard and Poor's: S (Rating Suspended)
  • A.M. Best: R (Regulatory Action)
  • Moody's: C (Lowest)
  • Fitch: SR (Suspended Rating)
The 2nd of the two main types of life insurance is Whole Life Insurance.

Whole Life Insurance, if you are planning to purchase it is basically term insurance with an attached investment within the life insurance company. It is sold to families stating that they are investing to save for retirement  or saving for their kids' college fund. It's quite a bit more expensive than Term Life Insurance.

The insurer will make available to you many, many investment options that they offer within their company like savings, money market, mutual funds and some stocks.

Types of Whole Life Insurance:
  •     General Whole Life Coverage
  •     Variable Life Insurance
  •     Universal Life Insurance
Those types of life insurance are directly related to the investment vehicles the policies are associated with.

Time period for Whole Life Insurance:

Each month you will pay life insurance premiums until the day you pass on.

One option with the investment portion is that you are able to borrow from your own money and then pay it back with additional interest for using your own money. If you pass on your family does not receive the investment and only the death benefit.

In regards to the investment vehicle you choose you basically can borrow your own money and continue to pay premiums each month to it.

Whole Life Insurance in summary:
  •     Term Life Insurance bundled with Investment
  •     Time period: Rest of your life
  •     Whole Life Insurance offers many types of investment options
  •     Family will not receive Investment portion on death of insured
The right type of life insurance coverage to purchase is Term Life Insurance. If you get Term Life Insurance you can take the money that you would save from buying a whole life insurance policy and put that in your pocket, in a savings account at the bank or in ANY investment vehicle you'd like and you will never, ever have to borrow it from any insurance company

Our Life Insurance Recommendation:

Do not purchase a life insurance policy with any type of investment vehicle attached it. They were never meant to go together. When you have dependents counting on you and your income, go for cheap term life insurance
Total Views: 366 | Approx word count : 714 | 11/28/2010
Writers Resource: Founded by former insurance agents who believed that the only way to get the best life insurance rate for the customer was to build an insurance quote comparison site for customers and present multiple life insurance online quotes.





MarketersDomination Related Articles
3 Solid Tips on Finding Inexpensive Term Life Insurance Online By: Evan Povich - You may or may not have already discovered that Permanent Life Insurance is a bad deal to begin with and decided to purchase low cost life insurance When you compare term life insurance vs whole life there is only one type of insurance to buy an...
Benefits of Using Credit Cards By: Melanie Simpson - Nowadays people swipe their card to pay for items. We are referring to making purchases with credit cards. Everywhere you go you will find that almost everyone uses some type of card, be it debit or credit to complete financial transactions. Credit c...
Gerald Celente: Not Only Too Big To Fail but Also Too Big To Jail By: Elisheva Wiriaatmadja - In the recently published newsletter (the summer edition) of the Trends Journal, Gerald Celente questions optimism people still have who think that the economic collapse will never happen in the United states. With double-digit unemployment, real est...
Low Cost Life Insurance Strategies By: Evan Povich - Looking for low cost life insurance purchase life insurance it is vital to look at your reasons behind life insurance before getting life insurance quotes. Buying life insurance is a big decision not only applies to you but it affects the rest of you...
Alumni Investments Possible Solution to Student Debt By: Elisheva Wiriaatmadja - A quick look at the nation's current student debt situation is all it takes to understand the deep-rooted problem that students today face.  Total student loan debt today exceeds $1 trillion, over 14 times the debt level 15 years ago.  To ...
When choosing a debt reduction company be wary of the scam merchants By: Michael Thomas - Any person who has financial problems and is looking to use a debt reduction company should make sure that they understand the relevant laws in the countries they reside in. The Fair Debt Collection Act is the one for the United States and if you are...
Home | Top Editorials | Popular Content | Article Directory | Support | Terms | Privacy | Account Login

Article Marketing | Article Directory | Article Spinning | Content Syndication | Article Distribution

© 2018, All Rights Reserved.
All other copyrights belong to their respective owners. Internet Marketing Forum