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HTML <html> <head> <title>Understanding Life Insurance</title> </head> <body> <h1>Understanding Life Insurance</h1> <div class="info">Author: <a href="author_1_105087.html">Lukasavige</a></div><div class="body">Each time I meet with a client we discuss life insurance needs. I am amazed at how little people know about the insurance they carry. We make it a priority that each of our clients understands any type of investment or insurance product before they buy it.<br /><br />For example, I commonly see a lot of people carrying cash value insurance (or some derivative). The only type of life insurance we recommend is level-term life insurance.<br /><br />It's typical that I meet with a middle-aged couple who are paying nearly $300 per month for only $200,000 worth of coverage. If that policy were converted to level-term insurance, that rate would instead be $300 per year and would instead buy about $500,000 worth of coverage.<br /><br />Cash value is typically a high-commission generating product for the salesmen who sell it, and they are usually very good at selling it. Normally they will push the fact that the policy builds up a cash value that you are able to cash in. The stated rate of growth is usually stated around 6%, however after fees are paid to the insurance company, studies have shown that rate to be only 2-3% and sometimes much lower. If you were to buy a $100,000 cash value policy and over the years it builds up a cash value of $10,000, you can cash that in at any time. However, if you were to die, your beneficiary would only receive the face value of $100,000. What happens to that $10,000 cash value that built up? The insurance company keeps it.<br /><br />So the moral is to NEVER buy cash value insurance. Always buy good level-term life insurance where the policy is 6-8 times your annual salary. For stay at home parents, I also recommend getting coverage at around $100,000 - $150,000 (times the number of children you have) on themselves. So a stay-at-home mom with two kids might carry a policy of $200,000 on herself.<br /><br />Also remember to chose a term that will carry you through to a point where you can afford to insure yourself. The point of any type of insurance is to pay someone else to take on a risk that you cannot afford yourself.<br /><br />If you'd like quotes from trusted services that we have used, feel free to check these out...<br /><br />Ins Web<br />Zander Insurance</div> <div class="source">Article Source: <a href="http://www.articlealley.com/article_243369_19.html">http://www.articlealley.com/article_243369_19.html</a></div> <div class="author"> <div class="authorBio"> Justin & Rachel Lukasavige are Personal and Health Coaches at Lukas Coaching. Visit www.lukascoaching.com/resources.htm for a ton of free tools to help you improve your health, finances, business, career & life! www.lukascoaching.com For more free columns and articles, visit www.lukascoaching.com/articles.htm</div> <div class="authorUrl"><a href="http://www.lukascoaching.com" target="_blank">http://www.lukascoaching.com</a></div></author> </body> </html>
Text Understanding Life Insurance Author: Lukasavige Each time I meet with a client we discuss life insurance needs. I am amazed at how little people know about the insurance they carry. We make it a priority that each of our clients understands any type of investment or insurance product before they buy it. For example, I commonly see a lot of people carrying cash value insurance (or some derivative). The only type of life insurance we recommend is level-term life insurance. It's typical that I meet with a middle-aged couple who are paying nearly $300 per month for only $200,000 worth of coverage. If that policy were converted to level-term insurance, that rate would instead be $300 per year and would instead buy about $500,000 worth of coverage. Cash value is typically a high-commission generating product for the salesmen who sell it, and they are usually very good at selling it. Normally they will push the fact that the policy builds up a cash value that you are able to cash in. The stated rate of growth is usually stated around 6%, however after fees are paid to the insurance company, studies have shown that rate to be only 2-3% and sometimes much lower. If you were to buy a $100,000 cash value policy and over the years it builds up a cash value of $10,000, you can cash that in at any time. However, if you were to die, your beneficiary would only receive the face value of $100,000. What happens to that $10,000 cash value that built up? The insurance company keeps it. So the moral is to NEVER buy cash value insurance. Always buy good level-term life insurance where the policy is 6-8 times your annual salary. For stay at home parents, I also recommend getting coverage at around $100,000 - $150,000 (times the number of children you have) on themselves. So a stay-at-home mom with two kids might carry a policy of $200,000 on herself. Also remember to chose a term that will carry you through to a point where you can afford to insure yourself. The point of any type of insurance is to pay someone else to take on a risk that you cannot afford yourself. If you'd like quotes from trusted services that we have used, feel free to check these out... Ins Web Zander Insurance Article Source: http://www.articlealley.com/article_243369_19.html About the Author: Justin & Rachel Lukasavige are Personal and Health Coaches at Lukas Coaching. Visit www.lukascoaching.com/resources.htm for a ton of free tools to help you improve your health, finances, business, career & life! www.lukascoaching.com For more free columns and articles, visit www.lukascoaching.com/articles.htm http://www.lukascoaching.com
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