0 Term vs. Permanent Life Insurance - Which is Best?

Buying life insurance isn't a project most individuals would say they would like to spend time doing. Besides the expected uncomfortable feelings, making an attempt to make your mind up which sort of policy is at best confusing to the average person. Let's take a glance at the 2 basic sorts of life insurance on the market and how to decide which is best for you.

Permanent life insurance goes by many names and kinds - whole life, universal life, variable life, variable universal life, and burial insurance among others.  All of them have one basic premise; it's a kind of life insurance that will be around as long as you live. These policies are designed to be in effect for the whole of your life for as long as you pay the premiums. The premiums are designed to be level; they are meant not to increase over the term of the policy. They have a savings feature built into them that earns interest, and can be used by accessing it through policy loans or withdrawals.

Permanent life insurance will serve totally different functions for the owner in addition to the life insurance benefit. For instance, it can serve as a "forced savings" for people who find it hard to save money. Over time, the accumulation within the policy will add up to tens of thousands of dollars which can be used for emergencies or family expenses like paying for school. It is commonly used as  life insurance for seniors, supplying funds needed for funeral expenses. It may also be used as a retirement supplement, either by accessing the money in the policy as needed or electing a monthly payment.

Term life insurance is best described as pure and simple death benefit protection; there's no money accumulation inside it.   Term insurance is written to be in effect for a specified amount of time, say ten or twenty years. The client pays for the policy either monthly or annually, and at a predetermined time, the policy expires. This type of insurance is purchased with a premium that will increase annually or one that will stay lever for the entire period.

Term life insurance is best employed in things wherever the necessity for insurance is on a temporary basis. It is best used to guarantee a mortgage or a business loan to be paid off in the event of premature death of the insured.  Because of this temporary coverage, the premium for the term insurance policy will be less than permanent insurance.  It can also be a good choice when cost is an important factor, especially for young couples. 

So the question is, which is best? It depends on the reason you are looking to purchase life insurance. A general rule of thumb to use is to look at how long you would like to keep it. If you're looking to cover a need of five to ten years, term insurance will usually make the most sense. If you're planning to keep it for the long term, look to permanent insurance.

0 Burial Insurance for Seniors - What is it and how much do I need?

One of the more important financial planning decision for seniors will be how to pay for their funeral costs. We all know someone who passed away and left their children scrambling for money to pay the expenses.  With average funeral costs rising each year, leaving this expense to the children is not the best route to go. This is where purchasing burial insurance for seniors makes sense.

Burial insurance for seniors are simply life insurance policies purchased to provide money intended for funeral expenses.  They are usually whole life policies, and can be paid for on a monthly basis.  A whole life insurance policy stays in effect as long as you pay the premium on time, and the premiums are fixed.  This way you know how much the costs will be each month and how it fits in your budget.  The beneficiary of the policy is usually a spouse or one of the children who would be tasked with handling funeral arrangements.

When considering burial insurance for seniors, look to purchase a policy with a minimum of a $10,000 death benefit.  Even if a funeral is expected to cost less, there are usually some expenses that come up where the extra money would be helpful.  Any money not needed would go to the beneficiary for their use.

When deciding on the best life insurance for seniors, look for a company with high ratings from the independent insurance rating companies.  These ratings can be usually found on the website of the insurance company or by going to the websites of a rating company like A.M. Best or Moodys'. It will be listed under the "Financial" tab.

Every insurance company has different rules and guidelines for writing policies, so it is best to shop several companies to get the best price.  Go to an online life insurance quoting website to compare premiums.  They have access to numerous companies and can get comparative quotes quickly for you.

When you apply for one of these policies, the company will collect medical information from you to determine what premium to charge. As we get older, we have more health concerns, and these policies need to be priced accordingly.  Some companies will have a more limited underwriting procedure, but their products tend to be priced a little higher.  Fortunately, burial insurance policies for seniors usually have fewer underwriting requirements and can be issued even if someones health is not perfect.

Funeral costs these days can run upwards from $7,000 to over $10,000.  Purchasing burial insurance for seniors is the most cost effective way to pay for these expenses.  You will be paying these costs with pennies on the dollar and have peace of mind that when the time comes, no one will have to worry about how to pay for the bills.