Q&A: what are the different types of life insurance?Which company are you with and you think that is good?

Question by seeking: what are the different types of life insurance?Which company are you with and you think that is good?
which company is good in NY?

Best answer:

Answer by the_dude
The major types of Life Insurance fall into the following categories:

Term, Whole Life, and Univeral Life.

The plan you select depends upon what you intend to do with the Life Insurance, and how much you can afford. Believe it or not, many people use Life Insurance as an investment tool.

As far as companies, one company may be very good for me, but lousy for you.

This is because companies rate you on a variety of factors, including but not limited to:

Age, marital status, driving record, credit score, health, where you live, children or no, and hobbies you have. (The industry calls them avocations- some, like skydiving, may be considered a risk)

You can see that because these factors can apply to many different people, companies have different standards for who they accept, and how much premium you’ll end up paying for the ccoverage you need.

The best thing to do is find a broker- this is someone who works with many companies, and therefore can inform you of the pros and cons for each depending on your situation.

It’s a good idea to let them know what you want the insurance for, and how much you want to spend. Be firm, but flexible. They do work on commission, and will try to get you to spend as much as possible.

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4 thoughts on “Q&A: what are the different types of life insurance?Which company are you with and you think that is good?”

  1. “term” is the best for almost everyone.

    basically you pay an annual fee for a certain amount of coverage. Example, $ 400 for $ 100,000 coverage.

    Fees are based on age, health, and how much coverage you want.

    if you’re old or in poor health, it can get expensive.

    also, you can go for annual re-quotes, or buy “level term” for a certain number of years, which means the rates are pre-defined for say 10 years.

    Since the internet came along it has become a very competitive business. start searching for “term life insurance” and you’ll get lots of quotes and comparison services.

    Some insurance agents will try to sell you “whole life” or some other product that claims to combine an investment with insurance. In reality, it’s a compromise, you’re better off keeping your investments and your insurance separare. the reason they want to sell you that is because their commissions are huge – which means your costs are higher and investment returns less.

  2. I work for Legal and General so I am going to be biased and say they are good. I know they have an american branch.
    http://www.lgamerica.com

    There are various types of Life assurance

    Life assurance – This covers you for a certain amount of money usually determined by how much you can afford, or whatever your financial advior thinks your life is worth eg How much debt you have, how much it would cost to arrange childcare if you were gone. All Life policies have a clause that if you are diagnosed with a terminal illness they will pay out, this is to allow you to sort out your affairs and feel comfortable that everything is provised for.

    Mortgage Decreasing term assurance – This does what it says on the tin, it covers your mortage in decreasing amounts so as the amount you own on your estate goes down, so does the sum assured.

    Family and personal Protection plan – This is pretty much the same as Life insurance but will provide your family with your income yearly until the end of the insured period. eg If you had a new born and you died and you has taken out an 18 yr policy it would pay the equivilent of your wages to whoever you had assigned to look after your child for 18 yrs.

    Critical illness cover – This covers about 50 different conditions and if you are diagnosed with one of them and you are insured for £100,000 then you will be paid that much and your contract will then end. The conditions are fairly nasty ones such as heart attack, parkinsons, cancers, paralysis, stroke etc They are usually conditions that you would have to quit work for. Most people would use this pay out to pay off their mortgage.

    When you apply, If you have a clean application eg no serious past illnesses then you would be accepted straight away. If you do have illnesses or you are overweight or have a negative family history the company may request examinations or your GP’s notes

  3. There are two different types of life insurance
    1) Insurance with savings included in the package (known as cash value life insurance). These types of policies are also knowned as Whole Life, Universal Life, or Variable Life (or mixture of those words). They are always expensive because you are paying for two things (insurance and savings). Rate of return on savings are very low. In the first 3 years of the policy, no savings are accumulated. After 3 years, cash value starts to accumulate and you can borrow it anytime and pay it back with interest. If you borrow any cash value for whatever reasons, and you die without paying it back, this amount will be deducted from your face amount. Upon your death, all cash value will be kept by the insurance company. (All this info is stated in every cash value life policy).

    2) Regular insurance such as car insurance (known as Term insurance). These policies are known as “pure insurance.” They are inexpensive, therefore you can get lots of coverage for a period of time. Since it is inexpensive, it gives you room to invest your money in the market (such as mutual funds). When investing, you should invest in the long term. No matter how the market performs, you should always continue to invest and don’t pull out when the market does badly. Depending on how much you invest, you may not need life insurance or not as much coverage in 20 or 30 years. By that time, you should have less financial obligations to pay such as child support, college education, credit card debts, and mortgage. If you are still considering life insurance in 20 to 30 years, you should seek to lower your coverage because of your lower financial obligations than you have now.

    I personally own Primerica Life insurance. I bought a 30 year Term with $ 250,000 coverage. I pay approximately $ 35/month for it. I also invest $ 100/month into mutual funds. I’m hoping in 30 years, my mutual fund value is bigger than my life coverage by then. If I were to buy whole life insurance from Metlife, it would of cost me at least $ 200/month. So which company is good in NY? I would have to say Primerica. Even though I live in NJ, we’re close enough.

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