| What about Term life insurance |
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jerryjose
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| What about Term life insurance |
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Term life insurance are told as the best form of life insurance which offer high life cover with small premium. It has only insurance value, no investment value. Can we mix up insurance and investments? Is it profitable?
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Sun May 06, 2012 3:34 am |
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littleroc02us
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I bought a Term Life Policy last year and did a lot of research on different types of insurance. The result is, I'm not sure why anybody would mix investments and life insurance. #1 the fees are very high with Whole life insurance are typically 100% of the costs for the first year or two and the premium alone can be around $100 a year.. My costs with Banner Life Insurance for my 500k Term Policy is under $50 for a 20 year. #2 the cash value is subject to tax if you borrow from it, whereas if you simply invested i Roth IRA's you've already been taxed on that money and when you retire you withdrawl the funds tax free. #3 the rate of return stinks in the end because of the fees, taxes and ROI. You can invest with a Vanguard Index fund and get a 9% ROI tax free. #4 if you die and still have a Cash Value investment, they take it and your heirs don't get a dime.
Risk comes from not knowing what you're doing. (Warren Buffet)
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Mon May 07, 2012 2:27 pm |
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jerryjose
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| Insurance and investment |
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Yes you are correct. When we try to mix both insurance and investment. Insurance lost its risk cover nature and when we try to mix investment with insurance, the earning will be very less and the investment concept is very much less.
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Mon May 07, 2012 5:13 pm |
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ganesh6789
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| Term life insurance |
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I think term life insurance is for risk cover and not for investment.I think everyone should have at least 1 term life insurance.Investment comes after it.
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Tue May 08, 2012 3:39 am |
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littleroc02us
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quote:
Originally posted by patcassidy
It should also be bought by people in higher income brackets who can afford the more expensive premium as compared to term life insurance's affordable, even cheap premiums.
Pat Cassidy
Disclaimer: I work for AccuQuote and this is my personal opinion.[/url]
Can you explain this sentence please? So are you saying that wealthy people should spend more money on Whole life just to spend more money, instead of saving money on Term Life and get a ton of coverage?
Risk comes from not knowing what you're doing. (Warren Buffet)
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Thu May 10, 2012 1:06 pm |
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sethm
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That's possible actually. But take note that term policy is life coverage only. Whole life insurance, on the other hand, combines a term policy with an investment component. The investment could be in bonds and money-market instruments or stocks. The policy builds cash value that you can borrow against.
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Tue May 15, 2012 4:32 pm |
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noah herman
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Hi.. jerryjose,
I think, Term life insurance provides coverage at a fixed rate of payments for a limited period of time,after that period expires, coverage at the previous rate of premiums is no longer guaranteed and the client must obtain further coverage with different payments or conditions.
Thanks 
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Mon Mar 25, 2013 10:55 am |
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littleroc02us
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quote:
Originally posted by sethm
That's possible actually. But take note that term policy is life coverage only. Whole life insurance, on the other hand, combines a term policy with an investment component. The investment could be in bonds and money-market instruments or stocks. The policy builds cash value that you can borrow against.
Exactly, life insurance is to protect your family should something happen to you and that's it, it shouldn't be an investment tool. I can invest all day long and don't need and insurance tool with high fees to accomplish my end result. Keep those ideas separate and you'll be find.
Risk comes from not knowing what you're doing. (Warren Buffet)
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Wed Mar 27, 2013 6:00 pm |
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mac205
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As with most insurance plans, with a term life plan the insured will still have to undergo a basic physical exam conducted by a nurse (including blood work) to make certain they are insurable. The policy will remain in effect for as long as the premiums are paid. Term policies come in many varieties. However, the most popular models are annual, 7-year, and 10-year policies. Annual term policies carry a premium that increases slightly each year, while 7-year and 10-year term policies carry premiums that remain the same for 7 or 10 year periods at a time.
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Thu Mar 28, 2013 2:38 am |
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