Life Insurance which one is what? level term etc, confused please help?

I am 25, my wife is 25 and my son is 4 yrs old. I think its about time i got life insurance. Im slightly confused because most of the websites i have visited offer insuance for term cover? I dont have a mortgage or anything. Most of the insurance companies offer term cover up until 40 years which would only make me 65 and if i dont pop it then i lose all the money i have paid over the years. I want insurance whereby if anything ever happens god forbid to myself or partner at any age then i want to be sure that i will have the financial protection for my family. I would like a high amount to be paid to the other partner should any of us pass away. I want it to be a guaranteed lump sum regardless of the cause of death, i also dont want to be restricted by age. What am i looking for. Please help.

Policies other than term life insurance policies are not straightforward in explanation. Term insurance is like car or home insurance in a way. It is very simple... you pay the premium and when it's time for a claim, the policy pays. Whole life, universal and other permanent plans do much more than cover you in the event of a death. There is cash accumulation, ability to make loans and withdrawals, and some offer investment opportunities. Because of this and the need for explanation of benefits, the rules governing the sale of these types of life insurance are highly regulated. Therefore, you will not see many websites, if any, allowing you to be quoted for other than term insurance.

You need to pull out your phonebook or get on your favorite local internet yellow page website and find a good "independent" life insurance agent. An independent agent can take your personal situation and shop it among many different companies to get you a great value.

Here is an explanation of Term Life Insurance and Permanent Life Insurance for you review:

Term life insurance is designed to help people buy life insurance protection they need when they can't afford to purchase all permanent insurance, or when they only need life insurance protection for a specific period of time. Term insurance provides you with a guaranteed death benefit, but no cash value.

The life insurance premiums will increase at pre-determined intervals such as 1 year, 5 years, 10 years or 20 years. This depends on the type of term life policy you select. A term life policy is often the choice when your life insurance protection needs are higher for a period of time, then drop down to lower levels in later years, such as when your family is growing.

Term insurance can also be an effective way to provide supplemental coverage in addition to permanent insurance during years you need higher levels of protection, such as when your family and other financial responsibilities are beyond your current income.

In these situations, term coverage allows you to purchase important death benefit protection without going beyond your budget. Also, if the coverage is convertible (the coverage can be "converted" to a comparable permanent life insurance policy, without the need to provide evidence of insurability), you can get the coverage you need today â€” with the ability to purchase permanent insurance coverage in the future.

The Real Cost of Term Life Insurance

However, term insurance has its disadvantages. It isnâ€™t right under all circumstances. Among its drawbacks, be sure to note the following:

You do have to "die to be paid." As unpleasant as that sounds, it's true. Term life insurance provides a death benefit only, for a specific period of time. So, if you outlive your policy period, there is no payout to your beneficiaries. When the term coverage expires, your protection ends, too. And, if you stop paying your life insurance premiums, the coverage ends. Period.

Hereâ€™s an example for you - Let's say you own a $250,000 term life insurance policy. You've kept the coverage in force for twenty years, and the policy expires at midnight on June 30. If you die at 11:59 p.m. on June 30, your beneficiary receives the full $250,000 in death benefit proceeds. However, if you die at 12:01 a.m. on July 1, your beneficiary receives nothing under the term insurance policy, since the policy has expired.

Purchasing term insurance is often compared to renting an apartment. When you rent, you get the full and immediate use of the apartment and all that goes with it, but only for as long as you continue paying your rent. As soon as your lease expires, you must leave your apartment. Even if you rented the apartment for 10 years, you have no "equity" or cash value that belongs to you.

There is the Very Real Risk of becoming uninsurable when the term insurance coverage expires. While many term policies are convertible to permanent insurance coverage, others may not be. And, even if the term policy is convertible, there are time limits. If the policy is allowed to expire, you may be required to re-apply for life insurance coverage, and prove insurability by taking a medical exam. If you are found to be uninsurable at that time, you will be without life insurance coverage.

Since premiums increase at each renewal, the long-term cost of term can be very costly. Many people buy term insurance coverage when they are in their 20s or 30s because it appears more affordable when compared to a cash value or permanent life insurance policy with the same death benefit amount. By the time they're in their 40s or 50s, the coverage seems a little more expensive, as the rate goes up. In their 50s, the cost may be comparable to the cost of permanent coverage. Finally, in their 60s, if not sooner, they may decide to drop the policy â€” not because they no longer need the protection, but because they usually can't afford it. However, the person who paid more for a permanent life insurance policy in their 20s may still be paying the same premium. That's why the term policy's conversion privilege is so important. This valuable feature is usually available in the first few years of the policy, and allows you to convert to permanent insurance without submitting evidence of insurability. Converting to a permanent policy lets you "lock in" a fixed premium, and your life insurance coverage can never be canceled, provided you pay your life insurance premiums.

The Value of Permanent Life Insurance

Cash value or Permanent life insurance is often the best long term solution for many people. The reasons:

Permanent life insurance provides you with lifetime insurance protection, provided you pay your premiums. Usually, once youâ€™ve been approved for coverage, your policy cannot be canceled by the insurer. Regardless of your health, the insurance will remain in force.

Despite higher initial premiums, permanent life insurance can be less expensive than term life insurance in the long run. Many permanent life insurance policies are eligible for dividends, which are not guaranteed, if and when they are declared by the insurance company. Many companies offer the option to apply current and accumulated dividend values towards payment of all or part of your life insurance premiums. If dividend values are sufficient, out-of-pocket premium payments may be reduced after several years, yet coverage continues for your entire life. So, while life insurance premiums must be paid under both, the permanent and term life insurance plans, long-term out-of-pocket cost of permanent insurance may be lower compared to the total cost for a term life insurance policy.

Permanent insurance can eliminate the potential problem of future insurability. Cash value life insurance policies do not expire after a certain period of time. And, some policies contain guaranteed purchase options, which allow you to buy additional life insurance coverage at specified times, regardless of your health.

Cash Value Life Insurance builds cash value within the policy. This amount, part of which is guaranteed under many policies, can be used in the future for any purpose you wish. If you choose, you can borrow cash value for a down payment on a home, to help pay for your children's college education, or to provide income for your retirement. (Note: Borrowing cash value from your permanent life insurance policy requires the payment of loan interest and will affect your total policy values.) Also, if you decide to stop paying premiums and surrender or cancel your permanent insurance policy, the guaranteed policy values are yours.

When purchasing life insurance coverage â€” renewing or converting a term policy â€” look at more than just the premium. Consider the financial rating of the insurance company. Consider your long term goals and needs for protection. A professional insurance agent can discuss your life insurance goals, analyze your insurance needs and review the pros and cons of the various life insurance policy options available.

If you want, you can compare life insurance quotes online from a life insurance quote provider, such as Efinancial. They have provided life insurance quotes online since 2001. You just fill out one form and get up to 12 Instant Quotes for life insurance from top-rated insurance companies. To get your free quotes visit https://www.efinancial.com/smartquoteefc.aspx?source=389-707

I hope that helps! Best of luck to you and your family.

What you have described is a whole of life contract. I appreciate that you believe that you need this, but I don't think it is something that is easily available in the insurance market in the UK now.

You should really speak to a financial adviser about what you want to get out of it. He can discuss your needs and identify what would be best for you to achieve your goal (and be able to tell you how much it would cost). Or try somewhere like GOdirect.co.uk and email them your enquiry.

You should contact a local agent who knows the market there, and can lead you through this and help you find the best deal.

To connect with a local agent, fill out the quote form located at http://www.myinsurancequotes.net. A local agent will contact you and help you get started.

Jared Balis
http://www.utahinsurance.org

annual term is the cheapest policy ... annual price goes up every year since the chance you'll die within the following year is higher.

guaranteed renewable annual term is the cheap but slightly safer policy ... if you're in terrible car wreck and just hanging on when renewal time comes, you can't be non-renewed.

***
all other forms of life insurance couple some variety of investment vehicle together with term insurance.

level term means the premium is level [constant] over the life of the policy. they do this by overcharging you in the early years and then using the saved excess to subsidize the rates for the later years.

***
one of the many pitfalls in buying insurance is inflation.

you know approx. what $500,000 dollars will buy today in terms of future income.

what you do not know is how much inflation there will be over the next 20 years. suppose you die 20 years out but inflation has been 7.2%, on average, per year in between?

then, your survivors will be receiving the purchasing power equivalent of $125,000 today instead of $500,000.

Thus, inflation protection policies were invented.

Of course, they cost more -- and the premium goes up every year as well.

***
another issue is that life insurance companies, on the whole and averaged over long periods of time, have been poor investors. Further, they seem to charge what amounts to large management fees on the investments they do make.

thus, many argue that you'd be better off buying term insurance and a mutual fund [from someone else] instead of any life policy that includes an investment component.

I'm sure the agent you talk to will present his side of this argument without further prompting -- he gets a commission based on how much you spend [the cost], NOT on the total face value of the policy you eventually select.

***
beyond this, you need more than I know.

Go to aol.money.com. Under the "Personal Finance" tab, there is a section that explains life insurance.

You are smart to realize that you both need insurance, and the insurance you need is term insurance. Do not let anyone sell you whole life or anything that doubles as a savings plan. All you need is coverage in case of your or your wife's death. You need enough coverage to replace the income that would be lost if one of you died. Generally, you only need to be covered until your oldest child finishes college, but if you wanted to be covered for 40 years, there's nothing wrong with that.

By the time you reach 65, you will presumably have amassed sizable assets and be retired; so insurance isn't really necessary at that point. Don't think of it as losing all the money you paid over the years if the term expires before you do. Your premiums are buying protection and peace of mind. Like Bob Newhart said once, "The thing about life insurance is that it's no fun to collect."

Term life insurance. Most people only need life insurance until their financial responsibility to their family is complete. This usually means when your children are out on their own. Then gradually reduce the amount of insurance but keep enough to pay off your loans, mortgages, etc. Meantime put as much as you can into retirement accounts to cover your expenses after age 65.

If you are definitely wanting a payout then you have to look at a 'whole of life' policy without profits. The sum assured is paid on death. If you want your partner protected then you need 'joint lives, first death'

As a payout is guaranteed these will be substantially more expensive than a 'level term', so you should decide whether you will need cover for 30 years time or so when you have no dependents other than your partner.

Go to one of the established companies like the Prudential, Norwich or the Coop and talk to one of their advisers and tell them what you want. They can devise a policy to fit your needs and will quote you a price. At your age you should get a good rate. the policy you were mentioning ie pay till your 65 and get nothing is not a life insurance that is an accident insurance.

Ok, I'm no insurance agent or anything, but I know this... you need "whole" life insurance, not term. Whole is more expensive, but usually the cost stays the same, as in your premium will never increase and your benefits will never decrease make sure you get that kind. And you need it to cover more than just accidental death, it should cover death of natural causes. My aunt just died of Alzheimers of 8 yrs. and she had insurance, but it was only accidental, so the funeral, casket, everything had to be taken from the "estate".It was $10,000! Thank God there was an estate for it to come out of. It is always a good idea to have life insurance. My mother carries a policy on me and my daughter and she has it on herself, my father and siblings also. I had a whole policy on me and my ex 9 yrs ago and I'm thinking that it was about $35 a month for the both of us. It was a good policy too, whole life for us both and about $50,000 on him and about $30,000 on me, he and I are no longer together now and mom carries a $10,000 policy on me, so I'm not sure of the prices myself, but I am 30 yrs. old and mine costs right under $20 a month. As far as your son goes, the Gerber Grow Up Life Insurance plan is a good one for children. You can sometimes start one for just a dollar. Anyways, go with "whole life" make sure you get plenty and keep it up and don't drop it. That should keep your rates reasonable, and some policies are made in a way in which you can actually borrow money against them after you have paid in so much. Sometimes a bank acct. such as checking or savings offers life insurance as a perk to having the acct. and even when you have a loan through the bank, sometimes they'll offer life insurance along with the loan for a very cheap price just for having a loan through them. I think it's so that they can "insure" they'll get their loan back even if something happens to the person who has taken out the loan. Most insurances do pay in a lump sum as long as you show a death certificate and the death fell within the guidelines of the policy. I hope this helps you, and Good Luck!

I used to sell life insurance, hold on to your hat. What you require is Whole Life insurance. It builds value for the life of
the policy. At 25 you should be able to get a pretty inexpensive premium. If you should die with this policy being two years in, it would pay the face value. If you need to borrow against it lets say in 15 years you can't be denied it is your own money. Term life is pushed by alot of companies that are looking for a sale and it is to protect against debt. Most of these policies end after a certain term and they contain no cash value. Call a reputable insurance company and have them come out, don't feel obligated to buy when you are just looking. Good Luck!

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