Term or Whole Life Insurance?

Term or Whole Life Insurance?

Term or Whole Life Insurance? It depends on your circumstances and financial goals.

Generally speaking, term life insurance offers the greatest coverage for the lowest initial premium and is a great solution for people with temporary needs or a limited budget.

Whole life insurance may make more sense if you anticipate a need for lifelong protection, or if the option of accumulating tax-deferred cash values is attractive to you.

Also, it doesn’t have to be one or the other. Sometimes, a combination of term and whole life insurance might be the right answer.

Term or Whole Life Insurance?

http://www.lifehealthpro.com/2013/06/19/whole-life-vs-term-theres-a-clear-winner-here

Term vs. whole life insurance cost comparison

The Differences Between Term and Whole Life Insurance

MALE, AGE 30

Policy amount Whole life 30-year term life 20-year term life
$250,000 $2,385 $240 $156
$500,000 $4,675 $403 $242
$1,000,000 $9,217 $720 $415

FEMALE, AGE 30

Policy amount Whole life 30-year term life 20-year term life
$250,000 $2,114 $206 $141
$500,000 $4,142 $335 $208
$1,000,000 $8,150 $585 $347

MALE, AGE 40

Policy amount Whole life 30-year term life 20-year term life
$250,000 $3,508 $384 $210
$500,000 $6,910 $687 $348
$1,000,000 $13,700 $1,281 $631

FEMALE, AGE 40

Policy amount Whole life 30-year term life 20-year term life
$250,000 $3,008 $314 $185
$500,000 $5,897 $553 $306
$1,000,000 $11,677 $1,026 $534

MALE, AGE 50

Policy amount Whole life 30-year term life 20-year term life
$250,000 $5,436 $913 $491
$500,000 $10,802 $1,725 $898
$1,000,000 $21,483 $3,301 $1,692

FEMALE, AGE 50

Policy amount Whole life 30-year term life 20-year term life
$250,000 $4,569 $689 $375
$500,000 $9,003 $1,284 $669
$1,000,000 $17,760 $2,349 $1,233

Methodology: We averaged the three lowest quotes available in each category for healthy men and women. Source: Quotacy.

So, Term or Whole Life Insurance? The difference in cost between the two products is huge. The difference in coverage is much different, as well.

How Much Life Insurance Do I Need?

How Much Life Insurance Do I Need?

“How much life insurance do I need?” Is a common question when signing up for life insurance. “How much money do you have?” is the common, wise-guy response.

Determining how much life insurance you need requires an examination of your current and future financial obligations, along with the resources your family could tap.

Your future obligations are a combination of what it would cost to help your surviving family members meet immediate and ongoing needs like funeral costs, taxes, food, clothing, utilities, mortgage payments, and your future obligations like college and retirement funding.

The resources that your surviving family members could draw on to meet those obligations include your spouse’s or partner’s income, savings and investments, other income producing assets, and any life insurance you might already own.

The difference between the two—your financial obligations minus the resources your family has to meet those obligations—is the approximate amount of additional life insurance you need. If this sounds confusing, you’re not alone. That’s why most people turn to a qualified, licensed insurance professional when they want to figure out how much insurance they may need.

If you don’t feel you’re ready to speak with an agent or if you want a preliminary sense of your insurance needs before meeting with an agent, visit our Life Insurance Needs Calculator. This tool will walk you through the various questions you need to ask yourself and provide you with a rough estimate of how much life insurance you may need to protect your family.

Simple. Term Life Insurance.

MassQuotes. Simple. Term Life Insurance.

MassQuotes. Simple. Term Life Insurance.

MassQuotes is all about term life insurance. Term life offers the greatest coverage for the lowest premium and can be a great solution for financial responsibilities such as: family protection, consumer debt, dependent care, education, funeral costs and mortgages.

MassQuotes helps figure out the amount of coverage that’s right for you, at a price you can afford.

When purchasing life insurance, the question really isn’t how much you need, but how much capital your family will need at the time of your death, which depends on two variables:

  • Expenses. How much will be needed at death to meet immediate obligations? This amount takes into account all final expenses: uncovered medical bills, funeral and estate-settling costs, outstanding debts, mortgage balance, and college costs to name a few.
  • Income. How much future income is needed to sustain the household? This is the number you’ll arrive at after calculating the “present value” of cash-flow streams your family will need after your death.

Utilizing technology and the buying power of the masses, MassQuotes will find the best term life insurance rates, at no cost from top-rated companies in seconds.

MassQuotes. Simple. Term Life Insurance.

Once you’ve found the best rate and you’re ready to proceed, you’ll want to have the following information on hand at the time of telephone application:

  • Driver’s license number and state.
  • Information on existing life insurance (carrier, amount,
    year issued, and beneficiary).
  • Amount of life insurance on spouse (if any).
  • Address of employer, including zip code, and annual
  • income of proposed insured.
  • Name, address, Social Security number, date of birth for
    all beneficiaries, and date of trust, if any.
  • Basic assets and liabilities.
  • All medical history and family history including serious
    medical problems.
  • Primary care physician name and address.
  • Dates and reasons for seeing primary care physicians
    within the last five years.
  • Dates and reasons for seeing other physicians/facilities
    (including tests performed), within the last five years.
  • Medications taken over the past 10 years, including
    dosage information.
  • Dates and times available for scheduling your medical
    exam

MassQuotes. Simple. Term Life Insurance.

Call or click us today to get started.

 

Who Needs Life Insurance?

Who needs life insurance? If someone will suffer financially when you die, chances are you need life insurance because it provides cash to your family after your death.

This cash, known as the death benefit, replaces your income and can help your family meet many important financial needs like funeral costs, daily living expenses, and college funding. In addition, there is no federal income tax on life insurance benefits.

To help you understand how life insurance might apply to your particular situation, below we’ve outlined a number of different scenarios of who needs life insurance:

You’re Married

Many people mistakenly believe they don’t need to think about life insurance until they have children. This is not necessarily true. If you or your spouse dies unexpectedly, would there be enough money to pay off debts like credit card balances and car loans and cover the monthly bills such as utilities, mortgage or rent? If you’re planning to have children, you may want to buy life insurance now instead of waiting until you are pregnant as some companies may not issue policies during pregnancy.

You’re Married With Kids

Most families depend on two incomes to make ends meet. If you died suddenly, could your family continue to meet all of their financial obligations — from paying rent or a mortgage to daily living expenses? Could your family continue their standard of living on your spouse’s income alone? Would their plans for the future — like college stay intact? Life insurance can help make sure your plans for the future can continue.

You’re a Single Parent

As a single parent, you’re the caregiver, breadwinner, cook, chauffeur and so much more. With so much responsibility resting on your shoulders, you need to make doubly sure that you have enough life insurance to safeguard your children’s financial future.

You’re a Stay-At-Home Parent

Just because you don’t earn a salary doesn’t mean you don’t make a financial contribution to your family. Childcare, transportation, cleaning, cooking, and other household activities are all important tasks, and the replacement value of which is often severely underestimated. With life insurance, your family can better afford to make the choice that best preserves their quality of life.

You Have Grown Children

Just because your kids are through college and the mortgage is paid off doesn’t necessarily mean that you no longer need life insurance. If you died unexpectedly, your spouse will still be faced with daily living expenses. Would your financial plan, without life insurance, enable your spouse to maintain the lifestyle you’ve worked so hard to achieve now and into retirement?

You’re Retired

Depending on the size of your estate, your heirs could be hit with a large estate-tax payment after you die. The proceeds of a life insurance policy are payable immediately, allowing heirs to take care of these taxes, funeral costs and other debts without having to liquidate other assets, which may occur at a fraction of their value. Life insurance proceeds are also generally income tax free and won’t add to your estate tax liability, if properly structured.

You’re a Small-Business Owner

Besides taking care of your family, life insurance can also protect your business. What would happen to your business if you, one of your fellow owners, or a key employee died? Life insurance can help in a number of ways. For instance, a life insurance policy can be structured to fund a buy-sell agreement. This would ensure that the remaining business owners have the funds to buy the company interests of a deceased owner at a previously agreed upon price. To protect a business in case of the death of a key employee, key person insurance, payable to the company, provides the owners with the financial flexibility needed to either hire a replacement or work out an alternative arrangement.

You’re Single

Single people may think they do not need life insurance, but there may be exceptions. For instance, some single people provide financial support for aging parents or a sibling with special needs. Others may be carrying significant debt that they wouldn’t want to pass on to family members who survive them. Insurability is another reason to consider life insurance when you’re single. If you are young, healthy, and have a good family health history, you may be eligible for a more affordable life insurance rate.

Term Life Insurance Rate Comparison: Then & Now

Do you have term life insurance? It might make sense to compare term life insurance rates: then & now.

People are living longer and term life insurance rates are getting lower.

If you can get in a more preferred category, extend your policy term, and pay about the same money, then it may be worth the effort (application & medical exam etc.) to re-apply.

You should review your term life insurance rates: then & now, every time a major change happens in your life – a marriage, birth of a child, purchase of a house, or starting a business.

Sample term life insurance comparison between “then & now:”

TERM LIFE INSURANCE RATES THEN …

Him:   Age 23 as of July, 2007

$500,000 face value, 20 year term: $245 annual   (30 year term: $370)

$1M face value, 20 year term: $425 annual     (30 year term: $665)

$2M face value, 20 year term: $785 annual   (30 year term: $1,265)
Her:   Age 22 as of July, 2007
$500,000 face value, 20 year term: $215     (30 year term: $300)

$1M face value, 20 year term: $365     (30 year term: $535)

$2M face value, 20 year term:  $665     (30 year term: $1,005)
TERM LIFE INSURANCE RATES NOW …

Him:   Age 33 as of July, 2017

$500,000 face value, 20 year term: $294 annual   (30 year term: $433)

$1M face value, 20 year term: $470 annual     (30 year term: $784)

$2M face value, 20 year term: $787 annual   (30 year term: $1,517)
Her:   Age 32 as of July, 2017
$500,000 face value, 20 year term: $237     (30 year term: $376)

$1M face value, 20 year term: $412     (30 year term: $660)

$2M face value, 20 year term:  $741     (30 year term: $1,290)
Although clearly, 10 years later/older, premiums are up. However, in comparison, not by that much. Sample clients are 10 years older and if they were to re-apply for life insurance they would gain 10 additional years compared to their existing policies.

MassQuotes: Term Life Insurance

kids-in-car

noun: term life insurance

life insurance that pays a benefit in the event of the death of the insured during a specified term.

MassQuotes utilizes the technology of the internet and the buying power of the masses to find you the best term life insurance.

MassQuotes compares term life insurance rates at no cost from top-rated companies in seconds.

We believe term life insurance offers the greatest coverage for the lowest premium and can be a great solution for financial responsibilities such as: family protection, consumer debt, dependent care, education, funeral costs and mortgages.

MassQuotes will help you figure out the amount of coverage that’s right for you at a price you can afford.

The typical process for applying for term life insurance online at the most competitive rates available is:

  1. Shop Rates & Request Application. Once you find a policy that is right for you, request an application, at which point a licensed life insurance professional will call you to answer questions and start your formal application.
  2. Application. Complete and sign your entire life insurance application. Use this checklist to help gather additional information your life insurance company may need about you and your health.
  3. Medical Exam. Complete a brief medical exam to confirm your health. The exam is done with an examiner who is paid for by the insurance company or licensed insurance professional and can be completed where ever and when ever convenient for you. View tips.
  4. Review. Wait for your insurance company to review your application and medical information to confirm qualification and rate. This review typically takes 2-8 weeks, depending on your insurance company.
  5. Approval. Once the insurance company has approved your application, your policy will be delivered to you, along with any additional requirements needed, in order to activate your coverage.
  6. Free-Look Period. Most policies offer a Free-Look period.

Reminder: Life insurance isn’t for the person that dies, it’s for the people that live.

The Best Gift Money Can Buy

The Best Gift Money Can Buy

The best gift money can buy.

Term Life Insurance might be the most generous, least selfish gift a person can leave their surviving loved ones. In other words: it’s the best gift money can buy.

Life insurance isn’t for the person that dies, it’s for the people that live.

Life Insurance can be a great solution for financial responsibilities such as: family protection, consumer debt, dependent care, education, funeral costs and mortgages.

Nobody wants to talk about life insurance and, with MassQuotes, you don’t have to. Sit back, learn about life insurance, calculate your life insurance needs, rate different terms, with different face amounts, and find the policy that best suits you.

Term life insurance rates are extremely low right now. Obviously, the younger and healthier you are, the lower life insurance rates are. Let’s face it, term life insurance just might be: the best gift money can buy.

Term life insurance offers the largest face value for the lowest premium.

If you have a term life insurance policy already in effect, you may want to re-apply.

If you can get in a more preferred category, extend your policy term, and pay less money, then it may be worth the effort (application & medical exam etc.) to re-apply.

Please call or click to get a term life insurance quote or to discuss.