Oklahoma Life Insurance
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Life Insurance – Saving Money With Stepped Or Level Premiums
In New Zealand, when you start a life insurance plan you usually can choose from two premium types: “stepped” premiums or “level” premiums. The difference is simple. Stepped life insurance premiums are designed to increase with age – so as you get older the cost of your insurance Read the rest of this entry »
Back with more news for you today. It’s amazing how much good information there is on this stuff out there if you know where to look. Three in particular that I found really valuable were…
Why Life Insurance Is Not an Investment
So, to buy term life insurance you “simply” need to calculate what the economic loss would be if you lost a loved one and then Read the rest of this entry »
What is the difference between a term life insurance versus whole life insurance?
Carl
Oklahoma City OK
There are two basic types of life insurance: whole life and term. Whole life insurance, sometimes called permanent insurance, pays your beneficiaries when you die while term life insurance pays your beneficiaries the amount in the contract if you die within the specified term or period of the policy.
As long as premiums are constantly paid on time until the entire the cost is paid, whole life insurance provides life time protection. This type of insurance builds up cash value over time. Cash value is different from a face amount. Unlike the face amount, your beneficiaries will not receive the cash value if you die. It is the amount that you, as the policy holder, will get if you file for a loan on your policy or the amount you could get if you surrender the policy before its maturity.
A whole life insurance has several advantages using your accumulated cash value. Regardless of your credit history, you can borrow a loan from your insurance company using your cash value as your collateral. You can also use it to pay premiums or to buy more coverage. If you cancel your policy, you will get your cash value in lump sum.
On the other hand, term life insurance is in-effect over a specific period of time only. Therefore, it is much preferable to choose term life insurance versus whole life insurance when your financial obligations are on a definite term such as home mortgage or tuition. Terms are usually in 5, 10, 15, 25 or 30 years. Unlike whole life insurance, death benefits are only given if the policy holder dies within the set period.
However, because there is a defined time, protection provided is not for life in term life insurance versus whole life insurance. Premiums for term life insurance versus whole life insurance are also less expensive but may increase at a point specified in the policy.
I’ve been a smoker for I think 5 years of my life. I quit several years ago for my own health. I heard that getting a non smokers life insurance is cheaper as compared to when you are smoking. Is this true? By the way I am from Oklahoma if that makes any difference.
Hope
Oklahoma City, OK
Hello Hope! It’s nice to hear that you’ve stopped smoking. I myself was a smoker before and I also quit for the simple and same reason that you have – I wanna live longer! When I decided to quit, I was shocked on the benefits I got not to mention getting lower life insurance premium.
It’s true that non smokers life insurance is cheaper as compared to smokers. Again the logic behind this is very simple – smoking means only one thing – higher risk for heart diseases and even cancer. So if you are someone who is considered to have higher chances of getting those diseases hence your life expectancy is shorter. With this, life insurance companies are favorable to non smokers. They are targeting the market they call “better mortality risks”. Given this fact, it is expected that non smokers life insurance get lower rates in the market.
In general, life insurance companies are aiming at non smokers by offering lowers life insurance premiums. If you are looking for non smoker life insurance you can use the websites by just entering your personal information. By doing this, you’ll instantly get non smoker life insurance quotes.
If you stop paying on a whole life insurance policy, you may have more leeway. If you have accumulated cash value within the policy, your insurer will likely draw down the cash value account to cover premiums