Do I need insurance?

You need 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 Life 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 whole 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 Life insurance may be suitable for your needs.

How much variable life insurance do we need?

The amount of variable life 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. whole life insurance may satisfy a number of these needs by providing a fund that can be used to:

Pay off an individual's last debts such as medical bills and funeral expenses;

Meet estate taxes and other expenses in settling an estate;

Provide life income for the spouse;

Pay off a mortgage;

Pay for the kids 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 term 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 independent types of insurance products available for purchase?

While there are many types and variations of term life insurance products available in todays marketplace, there are basically two types of Life insurance: term insurance and permanent term 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, variable life insurance policies do not build up any cash values.

What questions should I consider when selecting a whole life insurance corporation?

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

What is underwriting?

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

The term life 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 organization may request that you consent to the preparation of an investigative customer 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 firm which type of underwriting is applicable to the plan you are interested in purchasing and what type of medical information, if any, needs to be provided.

Often group term life 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 different offers?

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

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