Sep
2
2010
Interested in learning more about types of permanent life insurance policies? In this podcast, Byron Udell, one of the nation’s foremost life insurance and annuity industry experts, explains the difference between universal and whole life insurance.
Size: 6.30 MB
Length: 6:53
Sep
1
2010
The need for life insurance is now more than ever. Despite the fact that most peoples’ overall financial security has been compromised since the economic downturn due to layoffs, pay cuts, falling stock and bond prices, losses in savings and investment accounts and dwindling home values, ownership of individual life insurance has hit a 50 year low, according to LIMRA’s Trends in Life Insurance Ownership study.
We understand that these are tough times, but we also know that this is a temporary situation for most people. However, if a primary breadwinner died today the loss would be permanent for their family. That’s why we strongly believe some life insurance coverage is always better than none.
According to the study, nearly a third of U.S. households have no life insurance coverage at all. However, half of all households feel they need more life insurance – the highest level ever.
The study suggests that people recognize the need for life insurance, but they don’t think they can afford it. The fact is…they can. Term life insurance rates are near record lows, so even families on limited budgets can fit some life insurance coverage into their overall financial plans. For instance, a healthy 35 year old male can get enough term life insurance to cover his mortgage ($250,000 for a 20 year level term) for as little as $13.50 per month with a respected, top-rated life insurance company.
Here are some ways to save on life insurance during hard economic times:
Aug
25
2010
Many people don’t like talking about life insurance because 1) the thought behind life insurance is morbid and 2) the purpose of life insurance is sometimes confusing if you don’t know your families financial needs. For instance, it’s a common misunderstanding that life insurance is for investment purposes. The fact is, most people don’t need to invest in life insurance – their needs are much simpler than that.
Now there are some types of permanent life insurance policies that act like investments because they build cash value. But these types of policies really aren’t an economical way to invest your money. There are only a few times when permanent life insurance should be considered, such as in estate planning or asset protection situations. But for most of us, life insurance has one purpose – income replacement. That’s it.
Once you determine the purpose of life insurance, making a buying decision becomes much easier. If your purpose is income replacement, buy term life insurance.
Term life insurance is pure insurance. There is no cash value attached to the policy. And unlike permanent insurance, which provides lifetimes coverage, term life only covers you for a specified period of time – the term. The other big difference is the price. Term life insurance is usually 3 to 4 times cheaper than permanent insurance.
So after you determine that term life insurance is all you need, both financially and economically, ask yourself the following two questions:
To answer these questions, talk to your family and use AccuQuote’s term life insurance calculator. If you have questions about which type of life insurance is right for your family’s situation, talk to a licensed life insurance professional today.
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