Austin Life Insurance
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Choosing what kind of life insurance you want isn’t a picnic or a walk in the park. If you do your homework though, it’s easier.
It’s true, choosing life insurance is not all that easy, especially if you aren’t familiar with the terms. So, when it comes to things like the various policies you may see advertised online or other places, like term Read the rest of this entry »
Apr 11
Choosing what kind of life insurance you want isn’t a picnic or a walk in the park. If you do your homework though, it’s easier.
It’s true, choosing life insurance is not all that easy, especially if you aren’t familiar with the terms. So, when it comes to things like the various policies you may see advertised online or other places, like term Read the rest of this entry »
Reader’s Question:
It’s been a difficult time for us financially and I was thinking of shopping around and change our family’s life insurance. Do you think it would be better if I switch to a low cost term life insurance?
Monica
Austin Texas
There’s a lot to consider if you want to change your family’s life insurance depending on the policies and coverage since you did not really specify what type of insurance you currently have. Because if you have a whole life insurance, you might want to check out the pros and cons first before you switch over. But if you are really looking for a budget friendly option, a low cost term life insurance is generally much cheaper than cash-value policies like universal and whole life. You need to check if a low cost term life insurance policy is right for you because it does not build cash-value nor have the tax benefits.
However, it can be a great alternative for those who would like life insurance, but can’t afford the higher premiums as of the moment. Before you purchase a low cost term life insurance, you need to know how long coverage is. Terms are usually one, five or ten years and your beneficiaries will receive a death benefit if you die during the term of the life insurance policy.
You can actually shop around to choose the right low cost term life insurance by:
Is there a way I could get a breast cancer life insurance?
Chen
Austin Texas
Insurance companies offer special types of programs designed specifically to cover expenses related to dreaded diseases, one of which is cancer. So, yes, you could get a breast cancer life insurance provided that certain requirements are met. Getting one is a good decision since this type of policy will be useful when a person undergoes treatment for whatever form of cancer.
In most cases, the insurance agent, especially when you are buying a permanent life with a higher face amount, will require you to undergo a medical examination to determine the state of your health and to know if there are pre-existing conditions that could likely lead to cancer, like tumors. To qualify for a breast cancer life insurance, you must not have the disease upon application. Companies would reject your application if you have cancer. Or, you may deceive them into accepting you but should anything happen to you and they found out that your illness has been pre-existing, then, your beneficiaries will not get the insurance money. They will just receive the refund of all your payments.
Also, it is important to get a breast cancer life insurance while you are still young because chances are, your physical condition would be excellent. If you have lumps in your breast or uterine fibroids, have an independent examination from the experts and then get a doctor’s certification stating that these growths are non-malignant. Your premium may be slightly higher but this is better than not getting a coverage at all.
During the application process, it is important for you to be honest about your health because as they say, honesty is still the best policy. Do not attempt to cheat your way into getting a coverage even if you are not in top shape because it will eventually caught up on you.
I heard from a friend that whole life insurance policy offers cash value component. How does the cash value component works for me? What are the benefits of getting whole life insurance policy?
Candy
Austin TX
Before you purchase a life insurance policy, the first thing that you need to do is to figure out the reason for getting a life insurance policy and assess your financial obligations. It may be a long-term or short-term financial obligation. After these, you can choose the right type of life insurance policy for you.
If you choose the whole life insurance policy, you have a lifetime life insurance protection as long as you pay your premiums. Unlike the term life insurance policy, whole life insurance policy has a cash component that can help you with your immediate need for cash. However, premium of a whole life insurance is higher than that of term life insurance because of the fees and other charges that are not usually paid to term life insurance.
The cash value in your whole life insurance policy builds up over time. This is also tax-deferred and increases by the portion of your life insurance premium and interest paid by the life insurance company. At first, the cash build up at first but picks up after several years. This is because your earnings grow faster than your mortality costs.
There are other attractive features of whole life insurance policy. With this type of life insurance policy, there is no need to worry about outliving your life insurance policy (unlike with term life insurance policy) because of a deteriorating health as you age. You can also receive a great benefit from the cash value component other than protecting your beneficiaries. Whole life insurance plan can also provide a long-term financial support for your family when you die.