Whole Life Insurance Versus Term Life Insurance

There many different types of life insurance available and over the years different options have become a lot more complicated but the two main types of life insurance are whole life and term life. Each type has its pros and cons and in this blog post we are going to examine those.

Some of the well-known talking heads on television are adamant that people should never get anything other than term life insurance because term life insurance rates are so much cheaper and the amount of money you can save can be invested whereas with whole life insurance the greater expense is not justified by the cash value that the policy builds. People like Suzy Orman and Dave Ramsey will tell you that although whole life insurance builds cash value there are various fees and commissions associated with the investments made through your whole life insurance policy and that you're far better off investing the money yourself and going with a less expensive life insurance policy.

What the television experts say may be accurate for a lot of people but I don't usually like advice that consists of blanket statements that suggest that one solution is right for everybody. Whole life insurance is more expensive than term life insurance but there are advantages that may make it a better choice for some people.

Let's look at some of the pros and cons of whole life insurance. On the plus side, a whole life insurance policy never expires and has a guaranteed death benefit. It will builds cash value over time. It can be borrowed against if you need cash at some point in the future. A whole life policy also has a number of different tax benefits and can be very beneficial in estate planning.

The main drawback of a whole life insurance policy is that it is considerably more expensive than a term life insurance policy so you need to determine what your goals are for the insurance policy and that will help you decide which type of insurance is right for you. For example, if your goal is to make sure that your mortgage gets paid for, then a term life insurance policy would be perfect for this. If you have 15 years remaining on your mortgage you just have to make sure that your term life insurance policy did not expire until after your mortgage is paid off. However, if you have a lot of expensive assets, real estate, maybe a family business etc. the estate planning benefits of a whole life insurance policy may make it a better option for you.

Now let's take a look at the pros and cons of a term life insurance policy. The drawbacks of a term life insurance policy are pretty much the opposite of the pros of a whole life insurance policy. A term life policy has an expiration date, when you reach the end of the term you know longer have life insurance. It does not build cash value and does not have the same tax benefits that a whole life policy does.

The major benefit with a term life policy is the price. It is far less expensive than a whole life insurance policy and as we mentioned earlier the cost savings would allow you to make other investments if that is what you wanted to do.

All of the top life insurance companies will have several different options for you to choose from. In addition to whole and term there are universal life insurance policies, variable life insurance, and various hybrids of the two. Term life insurance is great for a lot of people and a lot of situations but there are circumstances where a whole life insurance policy may be better for some people. It's important to thoroughly investigate the different options you have available and to have a good understanding of your goals so that your insurance policy will do what you need it to do.

After you've decided which type of life insurance is best for you and how much life insurance you need, you should spend some time shopping around to find a company that offers the coverage options you're looking for at the best possible price. You can get whole life insurance quotes, term life insurance quotes, actually any type of life insurance quote online quickly and easily and comparing what the different companies offer and how much they charge for their coverage options will help you get the best possible plan at the most affordable price.

Some Tips For Finding Cheap Car Insurance

Car insurance is something that anyone who drives a car is required to have by law. The minimum amount of coverage required by law protects you from being financially responsible if you should happen to cause an accident. More expensive "full coverage" options not only protect you financially if you are at fault but also if someone else is at fault and they do not have insurance.

We're all required to carry automobile coverage but nobody wants to pay too much for it, so is it possible to find cheap online car insurance? The answer to that question is yes, but...

There are a lot of resources online to help you find a good insurance company and get a good price but the best auto insurance is not always the cheapest.

Before you go with a particular company you would want to do a little research to find out if there have been any complaints filed against the company. You can find out about formal complaints being filed against a particular insurance provider by checking with your state's Department of Insurance.

It's also a good idea to check with various consumer reporting companies that rate insurance providers on factors such as price, coverage options, customer satisfaction, and more. It is possible to find very cheap car insurance and it may even be possible to find a great company that offers a very inexpensive price but keep in mind that price should not be the only factor in making your decision about which company to do business with.

Is It Possible to Get Cheap Car Insurance for Young Drivers?

One of the most exciting times in a teenagers life is when they finally get their license and that feeling of freedom they get from the thought of getting behind the wheel and being able to go wherever they want to whenever they feel like it. That freedom comes with limits and responsibilities however and some of the excitement may wear off when they start shopping for car insurance.

Car insurance is one of those things that you have to have and unfortunately it is considerably more expensive for younger drivers. Auto insurance companies set their prices by assessing risk and statistics show that younger drivers are more likely to be involved in collisions or other incidents which cost the insurance companies money. For young males it's even worse.

There are some things that young drivers can do to help reduce the cost of auto insurance somewhat. If they get on the same policy as their parents, they may be eligible for a multi-policy discount that a lot of insurance companies offer. Maintaining a good grade point average may also make you eligible for discounts because a student that gets good grades is seen as more responsible and less of a risk to the insurance companies.

To make sure you're getting the best price on car insurance it's a good idea to shop around rather than just signing up with the first company listed in the phonebook. The Internet makes it easy to get an auto insurance estimate from a number of different providers in just a few minutes. Being able to quickly compare car insurance rates allows you to find a company that offers the coverage you need at the best possible price very easily.

To get multiple quotes involves filling out a short online form with a little bit of information about yourself and the car you drive as well as how much driving you plan to do. After filling out a short form you press a button and almost instantly have a number of different quotes to choose from. These websites are a huge timesaver and make comparison shopping a simple and efficient process.

How Does Whole Life Insurance Work?

The simplest way to answer that question would be that you as a policyholder make payments to an insurance provider. In exchange for these payments, the insurance company would pay benefits to your surviving family members or any other beneficiaries at the time of your death. That brief explanation pretty much is the gist of any life insurance policy but there are many different types of policies available, all with different coverage options.

Although there are lots of different types of life insurance the two main categories would be term life insurance and whole life insurance. Someone looking for an affordable life insurance plan may be more interested in a term life policy because they are considerably cheaper than a whole life policy but whole life insurance does have its benefits.

Whole life insurance, like the name implies, will remain in effect for the rest of your life as long as you make your premium payments. A whole life policy offers permanent coverage, level premiums, a guaranteed death benefit and it is also what is known as cash value life insurance because it builds cash value over time. A portion of your premium payments will be invested in stocks, bonds, and other investments. Whole life insurance policies also have some tax advantages and because of this a whole life policy is popular for people to use in their estate planning.

A lot of experts would argue that a term life insurance policy is better than a whole life policy but it's irresponsible to recommend a one-size-fits-all solution. Everyone is unique and every family has different financial needs and goals so it's important to investigate the difference options available and then make a decision that best suits the needs of your unique situation.

Whole life insurance may be more expensive than a term life insurance policy but it does have its benefits so if you're considering going with a whole life policy it would be a good idea to do some comparison shopping to try to get the best possible price for the coverage you need. Getting whole life insurance quotes from a number of different insurance providers will allow you to quickly and easily compare coverage options and prices. The Internet is a great tool for doing this research and makes the process of comparing companies with fast and efficient.

Why Do I Need Car Insurance?

Why do I need car insurance? The simple answer to that question is because it's the law. In most areas the law requires you to have at least a minimum amount of car insurance to protect other drivers if you are at fault in an accident. It's something you did cause an accident should not be the responsibility of other motorists to pay for your mistake.

Another good reason for having car insurance is because in all accident can be financially devastating if you do not have the proper coverage. Automotive repairs, medical bills, legal fees etc. can add up to staggering amounts of money.

If all you need is the minimum amount of coverage, there are many low cost car insurance companies available. A quick search on the Internet can turn up multiple possibilities. When shopping for auto insurance you can get online car insurance quotes to help you quickly find the cheapest price.

If you drive a valuable car you'll probably want to get more than the minimum coverage allowed by law and in this case price is not your only concern. You'll want to also find a quality company that has a good track record of customer service. To find the best auto insurance provider will take a little bit of research. You can check with your state's Department of Insurance to see if their are any formal complaints filed against a particular insurance company. You can also check with private companies like JD Power and Associates or Consumer Reports which will rates insurance companies based on various factors including price, the claims process, coverage options, customer service ratings etc.

Are You Paying Too Much for Car Insurance?

There's a very good chance that you are paying too much for car insurance. There are so many car insurance companies today and the sheer amount of competition means that it's very likely to be able to find a better price with a different company. You can do a little comparison shopping and quickly find out if you're getting the best price with your current insurance provider. Comparison-shopping is probably the fastest and easiest way to find very cheap car insurance.

In addition to shopping around for a better price there are a number of ways that you can lower your premium payments. One way to lower premiums would be to raise your deductible. The deductible is the amount you would have to pay before your insurance provider begins to pay for a claim. If you increase your deductibles your monthly premium payments will go down.

There are also a number of discounts that most insurance companies make available if you meet certain requirements. Some things you have no control over, such as your age. Car insurance for young people will always be more expensive than than it is for older people. Teenagers are perceived to be more of a risk to the insurance companies and therefore they must pay higher premiums. There's not much you can do to change your age or gender (boys are generally charged more than girls) but there are a number of factors that are completely in your control that can help you to get a better price.

Some discounts may be available for some of the following: people with a good driving record, students with good grades, people with a good credit score, driving a car with good safety features, having an antitheft device for your vehicle, completion of a certified defensive driving course.

There are a lot of possible discounts and there may be discounts available for things you would never even think of so it would be a good idea to contact your insurance agent and ask about any possible discounts. A simple phone call may be enough to save you some money.

Homeowners Insurance Company Ratings - An Important Factor When Shopping for Coverage

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If you're entering the real estate market and looking to buy a home you are also going to have to look into buying homeowners insurance. If you're borrowing money to pay for a new home there is a very strong chance that your lender requires that you insure your home or they will not lend you the money. Whether you are a new home buyer looking to obtain coverage for the first time or you are a longtime homeowner looking to get a better deal on your coverage you may want to look into some homeowners insurance company ratings to help you make your decision.

Whenever you do any comparison shopping price is obviously a factor. Everyone wants to get the most value for the money they spend but in addition to price there are some other factors to keep in mind. It's a good idea to go with a company that is financially strong. If your insurance company doesn't have enough money to cover your claims this could lead to some serious headaches at some point in the future.

In addition to the financial stability of the company you choose to go with you may want to look into some other things such as consumer reviews and the company's customer service record. There are a number of places that you can go to find homeowners insurance company ratings so that you can make an informed decision.

Some of these places include:

The National Association of Insurance Commissioners - The NAIC has a website at www.naic.org where you can select your state and be redirected to your state's Department of Insurance website. Your state's website will have a lot of information about any insurance providers operating in your state. The information will include things like a list of licensed agents and any complaints that may have been filed against the company.

A. M. Best Company - This company reviews many insurance providers and evaluates them on a number of different factors including the strength of the company and whether it's under regulatory supervision.

J. D. Power & Associates - J. D. Power conducts consumer surveys and rates companies based on prices, policy options, the way they handle claims, and customer service.
There's a lot to think about when you're shopping for homeowners insurance.

After you've determined the type of coverage and the amount of coverage that you need its a good idea to evaluate any companies you might consider going with by finding homeowners insurance company ratings to help you make the most informed decision possible. And of course when shopping for anything price is always a factor. The good news is that you can get multiple online insurance quotes in just a matter of minutes and this makes finding the best price one of the easiest parts of the entire process.

Answers to commonly asked questions about homeowners insurance

How much homeowners insurance do I need?

To answer this question you simply need to figure out how much it would cost to rebuild your home if it were completely destroyed. You do not need to have enough insurance to match the fair market value of your house because a large percentage of that value is attributed to the land that your house is built on. If your house were to burn to the ground you would need enough money to rebuild your house, you would not need to purchase the land again.

You would also want to take into consideration how much liability coverage you might need in case someone were to injure themselves on your property and you also have to decide on how much coverage you want for any personal property and possessions you have in your home.

Once you've decided on the amount of liability coverage you want, the amount of coverage you want for personal property, and figured out how much will it cost to rebuild your home, you'll know exactly how much homeowners insurance you need.

How much does homeowners insurance cost?

A lot of first-time homebuyers will eventually find themselves asking the question, how much is homeowners insurance anyway? The cost of your premium payments will vary from state to state. In addition to where you live there are a number of other factors that determine how much your premium payments will be.

A homeowners insurance company is in business to make money, so they will try to determine how much of a risk you are and adjust your premiums accordingly. Anything you can do to lower your perceived risk can also help to lower your premium payments. For example, having a security alarm reduces the risk of having a break in. Because of this your homeowners insurance company has less risk of paying a claim to replace personal property or repair damaged caused during the break in and therefore you could be entitled to a discount on your premium payments.

There are many other possible discounts that you may be eligible for and you would need to talk to your insurance agent to find out about any possible discounts.

What does homeowners insurance cover?

This is another question that anyone looking to buy homeowners insurance would want to know the answer to. A standard homeowners insurance policy will cover your house against a number of different perils such as fire, lightning, storms, burglary, vandalism, and more. Certain things however are not covered. Things like earthquakes and floods are not covered by a standard homeowners insurance policy and would require additional insurance to be covered against those types of events.

I don't want to pay too much, how do I know if I'm getting the best deal?

Everyone wants to save money and nobody wants to feel like they're being ripped off. To make sure you're getting the best deal, you need to do a home insurance comparison. Do some comparison shopping and see what different companies will charge you for your coverage. There are many websites that allow you to get free online homeowners insurance quotes so that you can compare coverage and prices quickly and easily. This is by far the fastest and easiest way to make sure you're getting the best price.