December 14, 2017

Why Spending More On Whole Life Insurance May Be Good

When shopping for life insurance you have to decide which type of plan is best for you. Generally speaking, most consumers are trying to decide between term and whole life insurance. There are pros and cons of buying both types. Do you know what they are? There may come a time when spending more on whole life insurance is a good plan. Of course, only you know if that time is now.

Buying whole life insurance is different than term coverage for many reasons. For one, you are getting something that is going to last for the rest of your life. While this may sound like the only way to go, keep in mind that it will effect you from a pricing standpoint.

Since whole life insurance lasts until you pass on you will be paying for your policy for the same period of time. Do you feel comfortable paying for whole life insurance from this day forth? Some people don’t mind doing so, but others would rather opt for term coverage that eventually expires.

If you are set on leaving money to your heirs, you should strongly consider buying a whole life insurance policy. With term life insurance your hope is that you outlive the coverage. With whole life insurance you know that this is not going to happen.

What do you think? Is spending more on whole life insurance a good plan? If you think so, compare whole life insurance quotes to term quotes. This will give you a good idea of just how much more you will have to spend. With all the right information it becomes simpler to make a decision on what to buy.

Save Money On Your Life Insurance Needs

In a day and age when finances are challenging for many consumers, finding ways to save on your life insurance are more important than ever.

If you are looking at different life insurance options to protect you and your loved ones, be sure to research whether term or permanent life is better for you and also what you can afford as far as premiums and so on.

As you may or may not know, the cost for life insurance is determined by three main factors – one’s age, their health and their lifestyle habits.

Looking at the health factor, if you are overweight, smoke and have a past history or medical problems, you can pretty much rest assure that you will be paying more for life insurance. In the event you are younger, in good health and do not smoke or have excessive weight on your frame, you will have a better time getting coverage.

If you are looking for life insurance but wonder how you can get better rates, there are some options for you to look at.

First, do everything possible to get in better shape.

Just doing things such as putting out the cigarettes for good and getting on a regular exercise program can go a long way in improving your rates. In fact, you could decrease your life insurance costs in half by improving your outlook.

Another option for you is to get added coverage.

Given the fact that more employees are being laid off at their jobs for financial reasons, it is important to note that many of them do not have the opportunity to keep any life insurance plans that they had while with that employer.

In the event you can add more coverage, do so because many times you can reduce your costs with a better deal.

Also keep in mind it is important to pay your bill annually.

By paying on an annual basis, you can save money, especially given that some insurers will charge you for monthly billing. Some insurance companies charge less in the event they can transfer the payments directly from your account online.

Finally, be sure not to purchase too much coverage.

In a day and age when consumers are trying to save in a number of ways, why overspend for life insurance if you do not have to?

When purchasing life insurance, how much money will be necessary to maintain your family’s lifestyle.

There are other options too to save on your life insurance, but invoking those mentioned above should help you get the coverage you need and at a price you can afford.

Using A Life Insurance Policy To Pay Off Credit Cards

In the last couple of years, the economic crisis has forced many consumers to run up large consumer debts.

With that being the case, some individuals may be tempted to take a life insurance plan that they have and cash it in for money to pay towards credit debt. So, is that a good decision or one you should avoid if in that predicament?

Some individuals may even once they have paid off the debt use leftover money from the life insurance plan to put some of it into an IRA or put it towards other expenses.

Many financial experts will tell you to simply leave the life insurance money alone. Yes, you want to pay off that debt as soon as possible, but taking from Peter to pay Paul is not the best way to go about it.

You should first ask yourself how you got into that credit card trouble in the first place.

It may have been some unforeseen circumstances, but it may also be the fact that you are not exactly good when it comes to handling money. If that is the case, some credit counseling would certainly be a good place to start.

Getting back to the life insurance plan, most experts will tell you to let that accumulate and be there for when it is truly needed, like at the time you unfortunately could become permanently disabled or even die.

The life insurance should be there to help you and your family when it is truly needed, not to throw at credit card debt.

Use other assets like extra money from your paychecks that is leftover each month and such to tackle the credit card debt, and do not use the card/s until your debt is substantially under control.

If you have money from the life insurance plan and/or other funds you are able to set aside, then you can open an IRA or other financial vehicle. Remember, money from one’s life insurance policy is not considered earned income.

Individuals take out life insurance policies for a very simple reason – protecting their loved ones and themselves in the event of a major event in their lives.

While credit card debt is important in the overall financial scheme of things, it is something that you likely accrued, not something that hit you overnight.

Leave the life insurance money just where it is and take a lesson from your financial decisions.