Life Insurance Information USA » term life insurance

Why do I need to buy life insurance?

admin — Mon, 21 Jan 2008 15:26:36 +0000

If someone depends on you financially, the likelihood is that you need life insurance. Its is easy and quick to purchase a no exam term life insurance policy. Life insurance provides cash to your family after you die. The money your beneficiary receives can be an important financial resource. It can help cover daily living expenses, pay the mortgage and other outstanding loans, fund tuition, and ensure that your family is not burdened with debt. Having a life insurance policy could mean your spouse or children wouldn’t have to sell assets to pay bills or taxes. Another advantage is that beneficiaries won’t have to pay federal income taxes on the money they receive.

What is Mortgage Life Insurance?

admin — Mon, 17 Dec 2007 14:51:40 +0000

If you own a house and have a mortgage, chances are that the lender included a letter when you signed your mortgage recommending that you buy a mortgage life insurance policy.

Mortgage Life Insurance is sold by insurance companies. It is called mortgage insurance but it is really a decreasing term life insurance that will pay off your mortgage if you die. You buy mortgage life insurance to protect your survivors from having to pay the mortgage.

The premium is structured where the policy begins with a death benefit that is equal to your current mortgage balance. The death benefit decreases at the same rate as your mortgage balance. The premium payments never change but may stop prior to the loan payment. The lender may agree to add the premium payments to your monthly mortgage payment.

What is Level Term Life Insurance?

admin — Thu, 13 Dec 2007 20:18:34 +0000

Level Term Life Insurance is more common than an annual renewable term insurance.

The premiums are guaranteed to be the same for a given period of 10, 15, 20 or 30 years and is based on the cost of each year’s annual renewable term rates, therefore the longer the term, the higher the premium.

Most Level Term Life Insurance programs include a renewal option which allows the insured person to renew for a maximum guaranteed rate if the period needs to be extended. This clause is invoked only if the health of the insured deteriorates during the term.