what are the different types of life insurance?Which company are you with and you think that is good?

Question

which company is good in NY?

Answer 1

There are two different types of life insurance
1) Insurance with savings included in the package (known as cash value life insurance). These types of policies are also knowned as Whole Life, Universal Life, or Variable Life (or mixture of those words). They are always expensive because you are paying for two things (insurance and savings). Rate of return on savings are very low. In the first 3 years of the policy, no savings are accumulated. After 3 years, cash value starts to accumulate and you can borrow it anytime and pay it back with interest. If you borrow any cash value for whatever reasons, and you die without paying it back, this amount will be deducted from your face amount. Upon your death, all cash value will be kept by the insurance company. (All this info is stated in every cash value life policy).

2) Regular insurance such as car insurance (known as Term insurance). These policies are known as "pure insurance." They are inexpensive, therefore you can get lots of coverage for a period of time. Since it is inexpensive, it gives you room to invest your money in the market (such as mutual funds). When investing, you should invest in the long term. No matter how the market performs, you should always continue to invest and don't pull out when the market does badly. Depending on how much you invest, you may not need life insurance or not as much coverage in 20 or 30 years. By that time, you should have less financial obligations to pay such as child support, college education, credit card debts, and mortgage. If you are still considering life insurance in 20 to 30 years, you should seek to lower your coverage because of your lower financial obligations than you have now.

I personally own Primerica Life insurance. I bought a 30 year Term with $250,000 coverage. I pay approximately $35/month for it. I also invest $100/month into mutual funds. I'm hoping in 30 years, my mutual fund value is bigger than my life coverage by then. If I were to buy whole life insurance from Metlife, it would of cost me at least $200/month. So which company is good in NY? I would have to say Primerica. Even though I live in NJ, we're close enough.

Answer 2

I work for Legal and General so I am going to be biased and say they are good. I know they have an american branch.
http://www.lgamerica.com

There are various types of Life assurance

Life assurance - This covers you for a certain amount of money usually determined by how much you can afford, or whatever your financial advior thinks your life is worth eg How much debt you have, how much it would cost to arrange childcare if you were gone. All Life policies have a clause that if you are diagnosed with a terminal illness they will pay out, this is to allow you to sort out your affairs and feel comfortable that everything is provised for.

Mortgage Decreasing term assurance - This does what it says on the tin, it covers your mortage in decreasing amounts so as the amount you own on your estate goes down, so does the sum assured.

Family and personal Protection plan - This is pretty much the same as Life insurance but will provide your family with your income yearly until the end of the insured period. eg If you had a new born and you died and you has taken out an 18 yr policy it would pay the equivilent of your wages to whoever you had assigned to look after your child for 18 yrs.

Critical illness cover - This covers about 50 different conditions and if you are diagnosed with one of them and you are insured for £100,000 then you will be paid that much and your contract will then end. The conditions are fairly nasty ones such as heart attack, parkinsons, cancers, paralysis, stroke etc They are usually conditions that you would have to quit work for. Most people would use this pay out to pay off their mortgage.


When you apply, If you have a clean application eg no serious past illnesses then you would be accepted straight away. If you do have illnesses or you are overweight or have a negative family history the company may request examinations or your GP's notes

Answer 3

The major types of Life Insurance fall into the following categories:

Term, Whole Life, and Univeral Life.

The plan you select depends upon what you intend to do with the Life Insurance, and how much you can afford. Believe it or not, many people use Life Insurance as an investment tool.

As far as companies, one company may be very good for me, but lousy for you.

This is because companies rate you on a variety of factors, including but not limited to:

Age, marital status, driving record, credit score, health, where you live, children or no, and hobbies you have. (The industry calls them avocations- some, like skydiving, may be considered a risk)

You can see that because these factors can apply to many different people, companies have different standards for who they accept, and how much premium you'll end up paying for the ccoverage you need.

The best thing to do is find a broker- this is someone who works with many companies, and therefore can inform you of the pros and cons for each depending on your situation.

It's a good idea to let them know what you want the insurance for, and how much you want to spend. Be firm, but flexible. They do work on commission, and will try to get you to spend as much as possible.

Answer 4

"term" is the best for almost everyone.

basically you pay an annual fee for a certain amount of coverage. Example, $400 for $100,000 coverage.

Fees are based on age, health, and how much coverage you want.

if you're old or in poor health, it can get expensive.

also, you can go for annual re-quotes, or buy "level term" for a certain number of years, which means the rates are pre-defined for say 10 years.

Since the internet came along it has become a very competitive business. start searching for "term life insurance" and you'll get lots of quotes and comparison services.

Some insurance agents will try to sell you "whole life" or some other product that claims to combine an investment with insurance. In reality, it's a compromise, you're better off keeping your investments and your insurance separare. the reason they want to sell you that is because their commissions are huge - which means your costs are higher and investment returns less.

Answer 5

Term (specified period, expires and rate hikes upon renewal); permanent (or "whole" life because it covers the person with a level premium for their "life", to age 100, but that might change); then there is universal life (created as a life insurance policy with an investment). A variation is variable universal life. There is also single premium life insurance (pay one big lump sum premium) - but that's usually for the super rich folk.

I have Liberty Mutual. Very good rates, fair underwriting, and great coverage.

Answer 6

Term Insurance covers for just that, a term or period of time. This time period is usually between 5 & 30 years. Some term products offer a guarantee for the entire period of time and others only have a 5 to 10 year guarantee so look at the small print. There are age limitations when purchasing Term insurance, the younger you are the longer the term available to you. Term insurance is the cheapest life insurance available to you. It is designed so that the older you get the more expensive it is meaning that you will ultimately out price yourself in the golden years. Term insurance does not build any cash value and does not offer any flexibility. What you see is what you get. Term Insurance is great to cover some immediate needs/expenses that would be created upon death such as covering debt such as a mortgage & your credit cards, making sure the kids can get through college, and as all life insurance has the ability to do, maintain or increase the standard of living of your surviving family. How do you want your family to live when you are not there to provide for them? Life insurance usually comes with some common riders such as waivers of premium and what they call Return of Premium or ROP. This rider is designed to return all premiums that you pay into the policy upon surviving the policy period. If you intend on keeping this policy in force for the entire period of time, this may be a good option to consider. There is a cost for this type of rider so make sure this makes sense for you.

Whole Life Insurance

Whole Life Insurance is the oldest and most expense type of insurance around. This is permanent insurance designed to stay in force to age 100. Unlike term insurance, Whole Life Insurance builds cash value that is designed to equal the death benefit at age 100. This insurance is has a couple different guarantees built into the policy. First, the death benefit is guaranteed to age 100 & second, the cash value is also guaranteed to age 100 as well. These guarantees’s explain some of the reason it is the most expensive kind of life insurance. The cash value grows from the interest rates inside of the policy. Most whole life policies will give you a guaranteed rate of 1-3% with current (non-guaranteed) rates of 2-4%. Whole Life Insurance is a “fixed” product meaning that the death benefit along with the premium cannot be changed once the policy is in force. The premiums are designed to be level for the life of the policy. That being said, you can get whole life insurance that is interest sensitive that can provide some flexibility with in the policy. Be sure to read the small print so you understand what is being purchased. Because there is a cash value growing within the policy, you may be able to take loans against this cash value. The loan rate is generally between 2-6%. Just remember, when you pull or borrow the cash value the policy may go into a lapse state which could generate a large 1099 from the IRS. Whole life insurance is used to cover final expenses, replace lost income, and for some to assist in providing the standard of living that one is used to.

Universal Life Insurance

Universal Life Insurance like Whole Life is permanent insurance designed to provide coverage your entire life. Universal Life is moderate expensive, generally 20-40% cheaper than Whole Life. Otherwise known as UL’s, these were created back in the 70’s with the investor in mind. What are two important concepts investors look for? Well, first is higher interest rates and second, flexibility. The cash value on UL’s grows at a higher interest thus if funded properly, the cash value will grow past the death benefit. UL’s can now provide you with a guarantee to age 100 as well. This guarantee is for the death benefit only, not the cash value. Premiums are designed to remain level for the life of the policy as well. UL’s will generally provide a higher guaranteed rate of return of 1-3% with current interest rates being as high as 8% depending on the funding options that are available with the product. Besides higher interest rates, UL’s can provide a lot of flexibility that can meet your desired needs and outcomes. The flexible parts include the premium, death benefit, guaranteed to a specific age up to age 100, and interest rate options (again depending on the type of UL). UL’s provide for some nice loan provisions as well. When the policy has been in force for around 15 years (look at the specific company guidelines), you can get what is called a 0% net loan. Or perhaps you want the variable loan rate as well. You can choose. Loans are available depending on the cash value that is available as well. Remember, be sure to look at current market conditions and get a current illustration before borrowing and taking money from the policy. The last thing you want to do is create a taxable event that you or your beneficiaries are not prepared for. There are many uses for UL’s in today market. These include income replacement, immediate debt, final expenses, and supplementing your retirement (a growing tool for those looking at further diversifying cash accumulation needs).

Conclusion

Now ask yourself, which of these meets the needs I have. It is ok to have a combination of permanent and term insurance. Be sure to review your goals, long term and short, looking at the risk management needs that you currently have for example young kids and college needs, current living costs, your mortgage, income from the bread winners and the budget. Long term needs may include retirement, income replacement, inflation, estate planning including funding the estate plan.

Do not hesitate to contact your agent or Denver West Insurance Professionals, Inc. ([e-mail]) if you have any questions about this presentation and your needs.

Answer 7

American Family
Have not had a problem with them