Whole Life Insurance Comparisons – Term Life Insurance vs Whole Life Insurance

Although we all want to save money, the cheapest life insurance policy is not always the best option. A few dollars a month now in your life insurance premium can create a mess of red tape when your loved ones are trying to collect on a policy after you have passed.

There are multiple types of life insurance policies out there, but most well known are term life insurance policies and whole life insurance policies. Most people think that whole life is the best alternative, but there is value to both types at different phases of your life. A wise financial planner would recommend that you have a combination of both whole life insurance and term life insurance, especially in early phases of your life. So what is the difference between term life insurance and whole life insurance?

Term life insurance is a policy that is set for a fixed term of your life (i.e. 10 year term, or 20 year term). During this time you have a guaranteed premium that is fixed and will not change. Term life insurance is typically cheaper, especially if you are young. This is because life insurance companies know that if you are 25 and have a 20 year term life insurance policy, the probability that you will die during that term is small. They stand to cash in all of the premiums without paying out a dime. Term life is a good option when you are young and have others who depend on you if you can not afford the expense of a whole life policy.

Whole life insurance, in comparison, is a policy that will remain through out the rest of your life, whether you die at 30 or 80 (most still have an end date at 95 or thereabout). The premiums for whole life insurance is typically much higher because the life insurance company knows that the only way they will not pay is in the event that you (1) stop paying or cancel the policy or (2) live beyond the end date (around 95). Additionally, whole life insurance will gain a cash value over time. As you pay your premium each month a portion goes into a cash account, which is invested to get a return (typically between 4-6%).

Although there are many advantages to both types of policies, the main advantages to a whole life insurance policy is that you can lock in a fixed premium for life and you can gain a cash value to increase the return. Term life is cheap when you are 25, but after your 20 year term (for example) you are now 45. Getting a new term life policy will be significantly more expensive than a whole life policy would have been if purchased at 25 or 30. Getting into a whole life insurance policy at a young age gives you the ability to fix the rate for life, which is very valuable considering the odds that you will see your health decline with age. Additionally, it is important to remember that a portion of the premium you pay is getting contributed to a cash account which will increase in value.

Given an understanding of these two types of policies, you must make a decision regarding the best fit for your life’s current circumstances. If you decide on whole life insurance comparison are invaluable. It is important that you obtain 3-5 quotes not only to get multiple rates and try to save a few bucks, but most importantly make sure that you have chosen the best policy. Some important considerations for your whole life insurance comparisons are:

1. How well is the company rated? In other words is there any risk that they will not have the financial ability to pay the death benefit? To check this out visit the website for AM Best. I recommend no less than a “B” rated company.

2. How will the company invest your cash account? Will you have any control over the investment options?

3. What fees are associated with the policy? There are sometime death benefit fees, fees if you take a loan against the policy. Understand the fee schedule.

4. When is the final age of payout? Is there a limit if you live to be 105?


Top 5 Insurance Policies You Must Purchase Before Moving the Business

Insurance policies help you stay financially afloat in a crisis scenario. When you host a business, there are several insurance policies that will make sure that you do not run out of business or have to dig into your personal savings to keep the business alive. The critical insurance policies take care of various aspects of the business including transportation, property, human resource, and other important assets belonging to the company.

Here, we shall list down the top 5 insurance policies that you must invest in when you kick off your new business and plan to move it in the future.

Logistics Insurance

Purchasing a logistics insurance is a great idea when you know that you will be moving your office stuff from city to city or state to state often. The logistics insurance will cover any damage that is caused to your company’s articles while moving them. It is mandatory for you to get a logistics insurance in case your business involves moving items for your customers using cargo trucks, ships, or by air.

The logistics insurance takes care of the items that are misplaced or damaged during the transfer.

Special Moving Insurance

The moving insurance is specially curated for businesses that move from one place to another, several times a year. The moving insurance takes care of packaging and delivering all the office valuables safely from your old office location to the new one.

The special moving insurance along with the logistics insurance provides complete cover all the important accessories such as computers, data drives, hard-copy files, etc. that are important to your company. The best special moving insurance schemes are valid when you move your articles at an international level too, giving you complete peace of mind for all the valuables in transit. Several movers and packers are in touch with insurance companies that provide a moving insurance for a discounted price depending on and distance of transfer that you wish to make.

Modifiable Property Insurance

Real estate investment is the biggest investment that your business makes during its tenure at one location. The modifiable property insurance takes care of all the financial troubles that you might face while vacating your old office and move into a new one. The best property insurance schemes provide a cover for the loss of income that occurs for the property that you own while transiting the various accessories.

Personal Insurance

It is always a good idea to get a personal insurance along with a special moving insurance scheme so that the transit does not affect your savings in case something goes wrong. This insurance scheme acts as a second layer of protection for you and your business in case the other insurance schemes fail to reap the returns.

The personal insurance always acts as a good investment for people who wish to secure their personal assets that may or may not be linked to the company’s name.

Event Insurance

The special event insurance provides a medical cover for all the guests of your business party, hosted at a place away from your office. There is a fair chance that the third-party liability insurance does not cover the expenses of someone getting hurt at a party/event hosted by the company. The special event insurance comes to your rescue in such cases.

It is always advisable to purchase insurance policies that are designed to move and adjust according to your business needs in the initial stages of the business itself. This will help your business in the long run.