Much of the time the no physical exam whole life policy is referred to as burial or funeral insurance. They are policies with a small amount of proceeds of 5,000.00 to 25,000.00. This type of coverage allows the insured to customize the policy to satisfy his or her needs. It provides protection and proceeds to cover final expenses.

The disadvantage of this type of protection is that it is usually a bit more expensive than policies that require a medical exam. If your life is too busy to be involved with setting appointments and going to a doctor for an examination, the no physical life insurance policy is for you. The only precaution is to read the fine print included in the contract for coverage. Some companies will ask for some kind of medical examination periodically, in the future, with regular checkups. There can also be limitations regarding past medical histories and age limits. Competition between companies offering this coverage is also creating a relaxation of the requirements for eligibility.

The benefits of the who life policy include proceeds from the policy remaining constant. Also the premium or cost of the contract remains the same throughout the life of the coverage. There is cash value building in the policy that can be withdrawn for different reasons. This money can even be used to pay policy premiums in some cases. The decision to purchase one of theses policies is a personal one that should be given careful consideration. The financial ability to keep the whole life coverage in force is one, among several other, decisions that must be made.

Term Life Insurance

Term life insurance has the fewest options, shortest terms and smallest premiums. It can be purchased in increments of years (5, 10, 20 …) and will remain in effect as long as the premiums are paid. There are two payment options available with term life. You can choose a fixed rate premium for the life of the policy or get a policy for which the premiums increase every year.

The benefits involved with term life are simple: If the bearer dies during the allotted term of years for which insurance has been purchased, the beneficiaries are paid the total amount of the policy as long as the premiums have been paid.

With term insurance, premiums will go up as the bearer ages and most insurance companies will not sell term life to those over the age of 65 years. Some term life policies require a periodic health check to determine an increase in rates while others do not require a doctor visit.

There are term life policies that allow for a conversion to permanent whole life insurance at any time the purchaser chooses.

Whole Life Insurance

Whole life insurance has more options and higher premiums but is considered to be permanent life insurance. The bearer is covered for as long as he or she lives.

Options involved with whole life insurance include the options to invest premium monies for dividend profits in order to build up the cash value for death benefits, lower the monthly premiums or receive cash back, the option to sell the policy at any given time when money is needed and the chance to receive some of the money paid in when and if the purchasers cancels the policy.

Options and plans associated with whole life insurance factor in on the amount of benefits and dividends earned over and above the amount paid for the policy.

When making the decision between whole life and term life insurance, it is wise to read all of the small print and compare the policies to find the one that is most suitable for your needs and income.

Benefits of Return of Premium Insurance

Return of premium life insurance is similar to term life insurance, with one crucial difference. At the end of the term, if the owner of the policy still lives, he or she gets back all the premiums paid to the insurance company over the life of the policy. For a 35-year policy with yearly premiums of $1000, at the end of the 35 years, the owner would get $35,000, tax-free.

Drawbacks

Given this final payout, it’s no surprise that return of premium life insurance costs more than regular term insurance. It can cost from 25 to 50% more, which can add up to hundreds of dollars per year.

Depending on the insurance company, the policy may also come with restrictions on the owner’s return if the owner cancels the policy before the end of the term. Some policies return a portion of the premiums paid and others may return nothing, especially if the owner has had the policy for less than five years. One should always check the fine print.

Finally, the owner pays in higher annual premiums than they would for term life insurance, so one needs to analyze whether that extra amount – above the annual term payment – would grow more quickly elsewhere. Return of premium policies might well tie up one’s money without giving an adequate return on it.

Return of Premium Appeals to Younger Owners

If the owner of the policy does die within the term, heirs only get the face value of the policy, exactly as if the owner had bought the cheaper term life insurance. Thus, return of premium policies appeal mostly to younger owners, those who want coverage but don’t believe their heirs will ever collect anything. And if they do live out the term, the final payback is considered a refund of the insurance premiums paid in, so it’s not taxable. When deciding, make sure to compare the costs of return of premium insurance and term insurance, at the same insurance company and amongst others.

The first step is to obtain a term life insurance quotation. This can be accomplished online or with a local life insurance agent. The cost of the policy will vary depending on the face value of the policy, the length of the term, the age and sex of the applicant, and any mitigating medical circumstances such as pre-existing conditions and whether or not the applicant is a tobacco user. Some high-risk occupations also change rates and availability of term life insurance, but this is not a factor for the vast majority of applicants.

When obtaining a term life insurance price quote, the most important considerations are the amount of insurance needed and the length of time the insurance will be needed. While there are many formulas for determining the appropriate amount of life insurance, the simplest way is to add up the applicant’s current and expected liabilities and then purchase a policy with a sufficient face value. For example, if an applicant owns a home with a $200,000 mortgage on it, needs $80,000 to fund college tuition for two children, and owes another $35,000 in auto loans and credit cards, it would be reasonable for that applicant to purchase a policy with a $350,000 face value.

The other consideration is the duration of the policy. In the above example, let’s say the applicant has 18 years remaining on his mortgage, and that his kids will be finished with college in 12 years. It makes sense for the applicant to purchase a 20-year level term life insurance policy. That way, the mortgage and all the other obligations will be paid for before the policy expires. In the unfortunate case of the applicant’s death, the insurance would be there to pay any remaining liabilities and to establish an estate for the applicant’s heirs.

As you’re shopping for life insurance, be sure to compare each term life insurance quote.  You will find prices and benefits vary considerably.  It’s easy to get a lot of quotes using the internet, and they’re free too!

Life insurance comes in several forms that can either pay a named beneficiary upon the death of the insured, put part of the premium towards investing, or both. It is up to the individual what type of plan would work best for them and this is why many carriers offer life and investment options individually or bundled depending on the needs of the consumer. But, like anything else, one should research all available options out there before deciding on a life insurance policy. Failing to do so can result in a plan that one is not satisfied with. Or, it could be worse – a plan that the individual cannot get out of.

Term life or whole life insurance

Term life insurance is a type that only insures the life of an individual and pays out one lump some to the beneficiary upon the death of the insured. With a term life insurance policy, the insured pays a monthly premium for a period of one to thirty years depending on the plan.  A whole life insurance policy, on the other hand, insures the individual’s life but also includes a separate investment vehicle that part of the monthly premium goes towards. Some companies call this method of life insurance “forced savings” and advertise it as a retirement plan. With whole term life insurance plans, the insured gets to borrow against the equity built up in the investment account and pay themselves back similar to a company sponsored 401K plan.

Many financial analysts are against whole  life insurance plans because they say there are better ways to invest money. The issue with these plans is that there are fees and costs associated with them that reduce the annual yield of interest by a few points. Investment professionals say that whole  life insurance plans are only worth it for the long term. Some even say that the plan will not yield a thing until after 10 to 20 years. Therefore, investment professionals recommend that if one is interested in a whole  life insurance plan that they realize it will not start making them money for a decade or two. Regular term life insurance plans however are practical and quite inexpensive for someone of moderate to great health.

All life insurance policies are not created equally and that is a good thing. Different people need different policy options at different times in there lives. Just as in life, one size does not fit all, so it is when it comes to life insurance policies. Life insurance should be a requirement, just like car insurance is. Nobody gets out of this world alive and those leaving seldom leave here without owing large sums of money to someone. Still, there are many people who either do not understand how important life insurance can be or they just don’t want to think about.

A whole life policy is a policy that continues without interruption for as long as the premiums are paid on time. Whole life policies consist of two parts, the death benefit and the cash value. The death benefit on a policy pays out the entire face amount upon death providing certain stipulations have been meet. The cash value is the amount you could get if should you decided to cash the policy in prior to the maturity date. Whole life policies can be considered investments as they do accrue interest.

Term life is a life insurance policy that only provides coverage to the policyholder for a certain length of time, or term as it’s called. Term life policies come in three different varieties and the term length is normally between one year of coverage and thirty.

The three different types are:

1. Level Premium Term: This is the most common term insurance policy. This is the cheapest kind of policy and the premium remains the same for the entire term.
2. Decreasing Term: Is normally used as protection from some type of debt payout such as a mortgage or college tuition.
3. Increasing Premium Term: A policy such as this is has a face amount that remains the same but the premiums go up with a person’s age. It’s a good policy to consider when health conditions are at issue as they normally do not require proof of good health.

Term policies are cheaper than whole life policies, but they are a gamble if the term expires before death. Each renewal of a term policy requires a new health exam and if you have developed some type of disease like cancer or heart disease you may not be able to renew. If you are accepted, expect to pay extremely high premiums. For this reason taking what’s known as a convertible term insurance policy from the very beginning would be an excellent move.

Term Insurance

Term life insurance is easy, affordable, flexible insurance that simply offers death benefits to one’s heirs. People can choose the length of the term, decide if they want their annual premiums to increase every year or remain the same, among other variables. Some policies have the right to raise premiums if the company’s costs increase. Many policies have “re-entry” ages where owners will have to show their good health in order to keep their low rates. Getting low rates is relatively easy up to age 50. It gets tougher after that; many companies won’t sell term life insurance to those over 65, so some may have no choice but to buy whole life insurance.

Whole Life Insurance

Whole life insurance combines death benefits with an investment component, which grows over time. Part of the annual premium goes into a savings program – in money-market instruments, stocks, or bonds. The owner of the policy can cash in on the policy or borrow against it. Unsurprisingly, whole life insurance has higher premiums than term life insurance. The majority of these policies are participating – dividends earned can increase the policy’s death benefits, be refunded in cash, or decrease one’s annual premiums. But people should note that whole life insurance often comes with much higher fees and commissions, which reduce the annual return of the investment portion. Further, it’s unlikely to give a good rate of return unless it’s held for more than twenty years.

The Better Option

Whether to choose term or whole life insurance depends on the policy holder’s individual circumstances. Generally, the key factor is for how long the owner plans to keep the policy. If it’s less than ten years, term insurance is probably best. If it’s more than twenty years, whole life insurance might be better. Between ten and twenty years is a grey area where people will need to analyze value; they may want to have an insurance professional run this analysis for them. Note that this decision assumes the owner will keep the policy for the whole term. On average, most people drop their policies in the first ten years and they often lose most of the money they’ve paid in during this time. People who are unsure should consult a professional to help them tailor insurance to their needs.

Some people are under the assumption that you must be in perfect health to be able to obtain life insurance. This is not true. There are a number of companies available that offer whole and term life insurance policies to people who have had prior health problems. People can still get life insurance with a number of life threatening illnesses such as diabetes, cancer, heart attack, and stroke. Some companies do even offer life insurance policies with no medical exams required. These companies are very easy to find and are readily listed all over the internet.

Simply go to any search engine and type in term life insurance with no medical exam. Instantly, you will be returned with hundreds of companies that sell term insurance with no exams. Sometimes these companies may want other information in place of no exam. They will have you fill out a general application. There will also probably be some type of medical questionnaire that will need to filled out before a monthly premium can be generated. The least amount of health problem the lower the monthly premium usually is. A persons age, weight and family history may also affect the amount of monthly premium that is required for insurance.

Term life insurance can be found with no exams, but they may have other requirements that need to be met to be approved for the policy. Fill out the forms proper and honestly and you will be guaranteed to get a policy with the best available rates with no exam required.Get

A whole life insurance policy has a guaranteed death benefit–as long as the policy is paid up, the death benefit will be paid when the person dies, there is no expiration on the policy.

Whole life insurance also has a cash value associated with it.  People with whole life policies pay much higher premiums than those with term life insurance, but in return, some of that money is set aside and grows over time.

Because of the high fees and commissions associated with a whole life policy, cash value grows very slowly at first.  In fact, if you cannot commit to holding the policy for at least 20 years, you probably will not have a good investment on your hands in a whole life insurance policy.

How do I use the cash value of my whole life insurance policy?

A Loan: Once you have accumulated enough cash value in your whole life insurance, you can take out a loan against that policy.  You can pay it back, plus interest, or you can keep the money; it will be deducted from the death benefit when you die.

To Cover Your Premiums: with enough cash value in your life insurance, you can stop paying the premiums and let the cash in the policy cover the payments.

Withdraw It: again, after you reach a certain level of cash value, you can withdraw all or some of the accumulated money.  Depending on the exact policy you have, your death benefit may be reduced by less than, the same as, or more than the amount you withdraw!

Do I have to pay taxes on the cash value in my whole life policy?

Your cash value will grow in your whole life account tax-deferred.  When you withdraw it,  you are only taxed on the money you withdraw that exceeds the amount you’ve put in.  If you withdraw less than you put in, you will not be taxed.

Similarly, a loan you take out against the policy can be taxed if you cancel the policy before you finish paying back the loan.  Any amount loaned that is over the amount you’ve paid in will be taxed.

Is whole life insurance with cash value for me?

Look into whole life insurance very carefully before buying.  Most financial experts (who are not making an excellent commission on your whole life insurance) agree this insurance is a good buy only in a few cases; most people will be better off buying term life insurance and investing separately.

A mortgage term life insurance policy is often a decreasing or reducing policy, meaning the benefit goes down as time goes on. This makes sense because your mortgage balance should also be going down as you continue to make payments. Sometimes, with decreasing term mortgage life insurance, the premium will also decrease, sometimes it won’t. A policy with a premium that stays the same is a level premium policy. A policy where the benefit stays the same is called a level benefit policy. You can get level premium, level benefit policies or level premium reducing benefit policies. Make sure you read the fine print and understand your policy before purchasing it.

As you collect quotes for mortgage term life insurance, you may notice that the premiums are more expensive than a typical term life insurance policy. This is because most mortgage term policies don’t require a medical exam, rather just a smoker/non-smoker classification. If you are healthy, it makes better financial sense to get life insurance with a medical exam, but if not, a no-medical exam policy will probably be cheaper for you.

An easy way to get lots of life insurance quotes to compare is to look online. Be sure to compare regular term life insurance with the mortgage term life insurance quotes you get. It is often cheaper and simpler to just get a term life insurance policy that will cover your mortgage and other bills as well as expected future expenses such as college tuition in the case of your death. A good rule of thumb for how much life insurance to buy is 10 year’s worth of income. Life insurance gives you and your family peace of mind that they won’t have to worry about finances, even paying off the mortgage should anything happen to you.