Online affordable rates & quotes -term & whole life insurance today - 5 BIG Universal myths
Aman Goyal
October 12, 2009
Term Life insurance and Whole Life insurance are quite probably the most misunderstood financial tools that exist today. Let´s take a close look to these some of the most common myths about term life insurance rates and whole life insurance quotes.
Myth 1 – It would be cheaper to buy directly from life insurance companies
Term life insurance and whole life insurance rates are control by the State Insurance Department; hence for the same life insurance policy from the same company in the exact similar underwriting class the rates will the same. Life insurance companies can´t charge different rate and price for direct shopper v/s anyone is buying from the online life insurance brokerage firm. The online rate you will find equally affordable as you would have otherwise gotten from the life insurance company directly. In fact buying from the online brokerage firm gives you an advantage of comparing multiple life insurance companies to find best and most affordable rate quotes for your life insurance need.
Myth 2 – You has to die to get your death benefit
In a term life insurance policy, you have to die to claim the death benefit. But with whole life policy, your family will receive a death benefit when you pass away, and you can also benefit while you are still alive. The cash value puts the life into the whole life insurance policy. Cash value inside the whole life insurance policy accumulates on a tax-deferred basis and can be accessed for college savings, retirement savings supplement or any other purposes.
Myth 3 – One has to keep paying premium for forever to get life time coverage for entire life
As name suggest, the term insurance is for the certain term or period and you have to keep paying premiums to continue your coverage for that term. With whole life policy, you can use the dividends to help offset the future premiums or you can use the "paid-up rider" feature. The cash value at any time will purchase a specific amount of insurance with no more premiums due. In addition to paying the premiums, the cash value will continue to accumulate and grow. So with the right whole life insurance policy, from the right company, you only pay for a certain number of years but the coverage is still in effect for the rest of your life!
Myth 4 - Life insurance is only needed until your children are growing and you are working.
The biggest myth of all is you don´t need life insurance after retirement. Since whole life insurance policy is such a good place to warehouse as much money is possible–because of its tax-deferred growth–why would you want to stop accumulating money there? There is no guarantee that the money you plan to make by the time you retire will actually be there in the bank or at any other place when you actually retire. If the current economy has taught us anything it's that there are no guarantees about the stock market return, your job security, or the future. If you haven't created the pile of money you were expecting later, the only ones who will suffer are the ones left behind when you go. What if you were forced to take a second mortgage and the house now isn´t paid for? What if your children don't qualify for student loans or financial aid? The best investment is the one that provides the most money when you or your family needs it the most. Whole life insurance may take more initially but over the long term it is a most affordable life insurance and best financial security ever.
Myth 5 – The term life insurance is a most cost effective
Term life insurance is a good bet if you need to have big life insurance coverage for a certain period of time. What most people fail to realize is that once the term is up, so is the insurance and if you try to get more, you're going to pay a fortune for the same coverage! Another thing people don't realize is that the older you are, the more likely it is that you will need the coverage. Do you want your spouse sell the house they're in because you're not there to enjoy it with them or pay for your funeral! The best and most affordable insurance is ´pay the claim whenever you die´ and whole life insurance is just what its name implies; coverage for the rest of your life, however long that could be. Please complete a personalized life insurance quote request now or call to speak with one of the life insurance specialist at (866) 972-3262.
Myth 1 – It would be cheaper to buy directly from life insurance companies
Term life insurance and whole life insurance rates are control by the State Insurance Department; hence for the same life insurance policy from the same company in the exact similar underwriting class the rates will the same. Life insurance companies can´t charge different rate and price for direct shopper v/s anyone is buying from the online life insurance brokerage firm. The online rate you will find equally affordable as you would have otherwise gotten from the life insurance company directly. In fact buying from the online brokerage firm gives you an advantage of comparing multiple life insurance companies to find best and most affordable rate quotes for your life insurance need.
Myth 2 – You has to die to get your death benefit
In a term life insurance policy, you have to die to claim the death benefit. But with whole life policy, your family will receive a death benefit when you pass away, and you can also benefit while you are still alive. The cash value puts the life into the whole life insurance policy. Cash value inside the whole life insurance policy accumulates on a tax-deferred basis and can be accessed for college savings, retirement savings supplement or any other purposes.
Myth 3 – One has to keep paying premium for forever to get life time coverage for entire life
As name suggest, the term insurance is for the certain term or period and you have to keep paying premiums to continue your coverage for that term. With whole life policy, you can use the dividends to help offset the future premiums or you can use the "paid-up rider" feature. The cash value at any time will purchase a specific amount of insurance with no more premiums due. In addition to paying the premiums, the cash value will continue to accumulate and grow. So with the right whole life insurance policy, from the right company, you only pay for a certain number of years but the coverage is still in effect for the rest of your life!
Myth 4 - Life insurance is only needed until your children are growing and you are working.
The biggest myth of all is you don´t need life insurance after retirement. Since whole life insurance policy is such a good place to warehouse as much money is possible–because of its tax-deferred growth–why would you want to stop accumulating money there? There is no guarantee that the money you plan to make by the time you retire will actually be there in the bank or at any other place when you actually retire. If the current economy has taught us anything it's that there are no guarantees about the stock market return, your job security, or the future. If you haven't created the pile of money you were expecting later, the only ones who will suffer are the ones left behind when you go. What if you were forced to take a second mortgage and the house now isn´t paid for? What if your children don't qualify for student loans or financial aid? The best investment is the one that provides the most money when you or your family needs it the most. Whole life insurance may take more initially but over the long term it is a most affordable life insurance and best financial security ever.
Myth 5 – The term life insurance is a most cost effective
Term life insurance is a good bet if you need to have big life insurance coverage for a certain period of time. What most people fail to realize is that once the term is up, so is the insurance and if you try to get more, you're going to pay a fortune for the same coverage! Another thing people don't realize is that the older you are, the more likely it is that you will need the coverage. Do you want your spouse sell the house they're in because you're not there to enjoy it with them or pay for your funeral! The best and most affordable insurance is ´pay the claim whenever you die´ and whole life insurance is just what its name implies; coverage for the rest of your life, however long that could be. Please complete a personalized life insurance quote request now or call to speak with one of the life insurance specialist at (866) 972-3262.
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