Life Insurance Comparison

3 Responses to “What exactly is life insurance and how does it work?”

1. christine Says:
   June 22nd, 2010 at 11:34 am

   Dale

   Life insurance is insurance on your life. If you die the insurance company pays money to your beneficiaries. they could be family, friends, the company you work for even a charitable organization. as long as there is an insurable interest.

   If you are dead the money from the insurance can pay for your funeral, your debts, mortgage, medical bills, car payments, children’s college education, your families survival if you are no longer here to provide for them, as well as pay for inheritance taxes, probate taxes (life insurance is tax free)

   if you are single, no family, no responsibilities and don’t mind being buried by the state then you probably don’t need life insurance.

   Lots of policies don’t get cashed in or claimed, its when someone dies and the insurance company doesn’t know about it. a death claim has not been made, usually because the beneficiaries didn’t know the person had the policy. in this case the insurance company just keeps the money until a claim is made.

   There are lots of different kinds of policies and it can get a little confusing. Visit your state insurance departments website or even talk to an agent most would be more than willing to help, if you don’t know where to. Try this site to find the best life insurance

   Here you can get quotes from different life insurance companies in your area, its the best way to find an affordable life insurance with a reliable company.

2. mbrcatz Says:
   June 24th, 2010 at 9:49 pm

   Samuel

   Basically, it’s a bet.

   You’re betting that you die, the life insurance company is betting that you live.

   It accomplishes a goal. If you have no goal, you don’t need it.

   What *I* have it for, is to put my kids through college, if I die.

   Some policies, seriously overcharge you. Those policies, they take 10% of what you pay in, and put it off to the side. If you decide to cancel your policy, they’ll give you that 10% back. If you die, they keep it. That’s what cashing in is – cancelling your policy, to get a small amount of what you paid in, back.

3. sara Says:
   June 27th, 2010 at 7:22 am

   Ellen

   if you’re young and in good health, whole life is the best.
   your premiums not only pay your beneficiary after your death, but you can borrow against it after a few years. say you get the policy for 10 grand when you’re twenty..and you find when you are 30 you need some financial help..you can borrow a few grand on the policy
   you can pay it back or if you don’t your 10 grand policy now is only worth say 8 grand.

   term life insurance, is just for a set term (period of time) like if you have 20 year term insurance, and you again take it out at age 20 then when you’re 40 the term is up and you no longer have insurance.

   that term one is more for older people as it’s cheaper in premiums than whole life.

   now a days, most insurance companies will advance you up to half your policy value while you are still alive if you can prove through
   doctors etc. that you have a terminal disease and could use the money now.

   considering the small cost and if you’re young, it would be smart to get a whole life policy.

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