Update June 23- 2010 All About "Universal Life Insurance" By Insurance Experts

Unlike term and whole life insurances, this policy blends term insurance and an investment account into one contract. Also its premiums can be increased or decreased, paid when due or at unscheduled dates, or stopped entirely and restarted at the owner's will provided the policy value is adequate to maintain the cost of the insurance.
This type of policy is adapted well to satisfy the changing insurance and investment needs of its owner.
(By Kyle J. Norton)

Recommended Reading
Live Your Life Insurance
Teaches You Surprising and Viable Strategies
For Developing Prosperity Through
Your Life Insurance Policy

Which Kind of Life Insurance Should You Be?

By Marilyn Katz

Which Type of Life Insurance Is Best?

I cannot answer a general question like the one above. Instead, we need to be asking about the kind of life policy that is best for a person like us. Our choice will depend upon our financial goals, budget, and unique situation. Learn a little about the different kinds of coverage so you can make a good decision..

Term Life Insurance

This is very popular these days. Look at some obvious advantages to term policies.

1. Premiums are generally lower. Because it is cheaper, you may be able to afford a larger policy.
2. It is considered pure insurance. You will not be paying for any extras like a cash value.

Understand why term is cheaper. Since it is pure coverage, there will not be asset growth with a basic policy. It is also temporary, so an insurer is taking a shorter term risk. They are going to underwrite you in some way before they offer a policy, and they expect you to survive the term! They also anticipate that some percentage of clients will drop their policies before the end. This all factors in when the companies set their rates.

Whole Life Insurance

Sometimes this also also called traditional or straight life. It is considered permanent coverage. This means your policy will cover you as long as it is kept active. Keeping it active usually just means that the premiums are getting paid.

This type of policy will cost more. The insurer takes a larger risk. In addition, many whole life policies can build up a cash value that can be cashed in or borrowed against. Permanent policies may also be used in life settlements. So while a whole life policy costs more, it may give you more value.

Universal Life Insurance

This is a new type of life policy that has only been around a few decades. It is also permanent coverage, but it is different than whole life. It separates out the savings or investment aspect of the account from the actual insurance portion of the account. Because of that, it can be very flexible and useful for financial planning as well as coverage.

For example, with universal life, you may have flexible premium payments. You can pay a minimum payment that will keep the life insurance in force. You can pay a target premium which will help you meet some financial goal. You will also have a maximum payment you should make to comply with regulations.

Which Kind of Life Insurance Is Best?

Again, there is no one right answer. Many people just want to buy an insurance policy, and they have specific goals in mind. They may choose a term policy. Others want to make sure they are covered their whole lives, and do not mind the policy could also build a cash value. These people may want to consider whole life. Others choose to use their policy as insurance and a financial investment tool. Universal life is more attractive to them.

Now that you know a bit about the different types of life policies, you can start figuring out what will serve you the best.

Would you like to learn more about the different types of life insurance policies?

Visit us at Term Vs Whole life insurance to get more information about term, whole or universal life.

We can also help you find discount term life insurance quotes with our simple and safe online forms.

Recommended Reading
Live Your Life Insurance
Teaches You Surprising and Viable Strategies
For Developing Prosperity Through
Your Life Insurance Policy

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Update June 02 - 2010 All About "Universal Life Insurance" By Insurance Experts

Unlike term and whole life insurances, this policy blends term insurance and an investment account into one contract. Also its premiums can be increased or decreased, paid when due or at unscheduled dates, or stopped entirely and restarted at the owner's will provided the policy value is adequate to maintain the cost of the insurance.
This type of policy is adapted well to satisfy the changing insurance and investment needs of its owner.
(By Kyle J. Norton)

Recommended Reading
Live Your Life Insurance
Teaches You Surprising and Viable Strategies
For Developing Prosperity Through
Your Life Insurance Policy

Analysis of Universal Life Insurance Sales - Variable Life is Now a Gamble - Crisis For Clients

By Donald Yerke

Individual life insurance sales of variable life and universal life is a gamble for clients. Current analysis also reflects a reluctance of agents making large variable or universal life sales. Which crisis is worse? Should agents quit pushing variable life insurance, or are clients just being overly skeptic? Here is the information you need to decide.

In the first three months of 2009 life insurance sales premiums did not become paralyzed. Instead, sales plunged to where premiums are down over 25%. This is a level not seen since the early 1940's.

Term insurance, which typically has no cash value, has little change noted. This means there is a reason for the market based cash value policies of universal life and individual variable life sales experienced a drastic beating. These policies are very risky during a period of an economic downturn. The first quarter of 2009 is a wake up call. Variable Universal Life sales premiums equaled only 40% of the amount collected during the last quarter of 2008. Variable Life, not as risky as variable universal life, countered with a decline of about one-half as much.

Insurance representatives were stunned by client reactions, and in many cases did not present variable products to their potential clients. Many clients having been burned stuck to purchasing the less fluctuating vehicles of term life insurance and whole life.

As a result, the so-called "financial experts" were burned on sales and commission earnings. The positive analysis of this is the fate of insurance agents not truly qualified to sell financial asset related sales. Thousands of these agent trainees left the business or started selling basic products like those that they should have done at the beginning.

The final analysis is that people will continue to buy life insurance for protection purposes. However, consumers will stay more cautious when viewing insurance as a super investment vehicle. In turn, sales agents making variable universal life, variable life, and equity indexed annuity sales will be more careful in explaining the risks that go along with the sale.

Well published author, Don Yerke likes to concentrate on what you don't know or what no one else dares to print. Tell it like it is. Watch for his new paperback book debuting on Amazon this summer. It is loaded with great insurance marketing, brokerage, sales, and recruiting information. Come and get your FREE "Think and Grow Rich" Ebook by Napoleon Hill instantly. The website address is http://www.agentsinsurancemarketing.com. Save more than 60% Visit the website to get a package of Ebooks at under $1.99 each.

Recommended Reading
Live Your Life Insurance
Teaches You Surprising and Viable Strategies
For Developing Prosperity Through
Your Life Insurance Policy

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