Do I need whole life insurance?

You need variable life insurance if you want to provide financial protection for your dependents (or to your creditors) in the event of your death. A business may want to use insurance to fund its employee benefit plans, protect against the premature death of a key person or to provide for business continuation.

The following are typical examples of family and business purposes to consider when assessing the need for Life insurance:

Dependent children.

Dependent spouse.

Credit enhancement.

Key person indemnification.

Business continuation.

Employee benefit plans.

Should one or more of these examples apply to you, the purchase of insurance may be suitable for your needs.

How much term life insurance do we need?

The amount of insurance a person needs will depend on their own particular circumstances and the reasons for purchasing the package. One approach to determine how much term life insurance you should purchase is to analyze the various needs of your family in the event of the death of a family member. Life insurance may satisfy a number of these needs by providing a fund that can be used to:

Pay off an individuals last debt and bills such as medical bills and funeral expenses;

Meet estate taxes and other expenses in settling an estate;

Provide life income for the married person;

Pay off a mortgage;

Pay for the childrens education;

Provide funds for retirement;

Provide an income for the plan holders spouse to give the family time to readjust to a new standard of living;

Draw interest to provide funds for some special purpose; or

Provide a monthly income until the children. are grown and out of school.

Thus, the current and future financial needs particular to your partner can be a significant consideration in determining the amount of variable life insurance that is right for you. Another factor that may be taken into consideration in determining how much Life insurance you need is the amount of your annual salary.

What are the different types of insurance products available for purchase?

While there are many types and variations of variable life insurance products available in todays marketplace, there are basically two types of whole life insurance: term insurance and permanent variable life insurance.

insurance provides death benefit protection for a certain period of time such as one or ten years. Death benefits are paid to the beneficiary only if the insured dies during that term period. Generally, Life insurance policies do not build up any cash values.

What questions should I consider when selecting a variable life insurance firm?

There are two types of Life insurance organizations i.e. stock companys and mutual firms. Stock insurers are organizations owned by the shareholders of the corporation. Mutual insurers are owned by their plan owners who may receive a yearly dividend if one is declared by the companys board of directors. Both stock insurers and mutual insurers offer suitable insurance policys for purchase.

What is an underwriter?

Underwriting is the process an Life insurance firm uses when it selects applicants it is willing to insure and determines the cost of providing coverage. There are common factors that insurance firm may use to decide how much to charge you for the kind and amount of coverage you want to buy.

The insurance company receives this information from your application, and may ask you to fill out a health questionnaire or have a health examination or certain medical tests. In addition, the company may request that you consent to the preparation of an investigative consumer report or a Medical Information Bureau (MIB) report.

It should be noted that there are varying levels of underwriting including full underwriting, simplified underwriting and guaranteed issue. Each type of underwriting impacts the premium rates to be charged. Ask your agent or the organization which type of underwriting is applicable to the insurance policy you are interested in purchasing and what type of medical information, if any, needs to be provided.

Often group insurance is subject to different types of underwriting. In some cases, employees actively at work do not need to provide any medical information if they enroll within a specified period of time.

How do I compare cost?

To compare the costs of purchasing a Life insurance plan, it is recommended that consumers obtain quotes for similar policys from different companys. Comparing costs only makes sense if you are comparing similar insurance policy. comparability of costs can become increasingly complicated when products include such non-guaranteed features as dividends or additional amounts. There is no guarantee that a organization's past practices with respect to non-guaranteed uniques will continue.

Quotes for various products can be readily obtained from many sources, including local agents and brokers, telephone quote services and the internet.