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Finding Value In Life Insurance
Policies
After you have decided which kind of life
insurance is best for you, compare similar life insurance policies
from different insurance companies to find which one is likely to
give you the best value for your money. A simple comparison of the
life
insurance premiums is not enough. There are other things to
consider.
Questions to ask while comparing Life Insurance Policies-
Do the life insurance premiums or benefits vary from year to
year?
-
How much cash value builds up under the life insurance policy?
-
What part of the insurance premiums or benefits are not
guaranteed?
-
What is the effect of interest on money paid and received at
different times on the life insurance policy?
Once you have decided which type of life insurance policy to buy,
you can use a cost comparison index to help you compare similar
insurance policies. Life
insurance agents or companies can give you
information about several different kinds of indexes that each work
a little differently. One type helps you compare the costs between
two insurance policies if you give up the policy and take out the
cash value. Another helps you compare your costs if you don't give
up your insurance policy before its coverage ends. Some help you
decide what kind of questions to ask the insurance agent about the
numbers used in an insurance illustration. Each index is useful in
some ways, but they all have shortcomings. Ask your life insurance
agent which will be most helpful to you. Regardless of which index
you use, compare index numbers only for similar life insurance
policies -
those that offer basically the same benefits, with
premiums payable for the same length of time.
Remember that no one company offers the lowest cost at all ages for
all kinds and amounts of life insurance. You should also consider
other factors: -
How quickly does the cash value grow? Some life insurance
policies have
low cash values in the early years that build
quickly later on. Other life insurance policies have a more
level cash value build-up. A year-by-year display of life
insurance values and benefits can be very helpful. (The life
insurance agent or company will give you a policy summary or a
life
insurance illustration that will show benefits and premiums
for selected years.)
-
Are there special life insurance policy features that
particularly suit your needs?
-
How are non-guaranteed values calculated? For example, interest
rates are important in determining life insurance policy return.
Within some life insurance companies, increases reflect the
average interest earnings on all of that company's insurance
policies regardless of when issued. In others, the return for
life insurance policies issued in a recent year, or a group of
years, reflects the interest earnings on that group of insurance
policies; in this case, amounts paid are likely to change more
rapidly when interest
rates change.
 
TermLifeAmerica.com-
Lewis Fink is licensed as an insurance agent offering Life
Insurance in the following states:
Alabama - AL,
Arkansas - AR,
California - CA,
Colorado - CO,
Connecticut - CT,
Delaware - DE, District of Columbia - DC,
Florida - FL,
Georgia - GA,
Idaho - ID,
Illinois - IL,
Indiana - IN,
Iowa - IA,
Kansas - KS,
Kentucky - KY,
Louisiana - LA,
Maine - ME,
Maryland - MD,
Massachusetts - MA,
Michigan - MI,
Mississippi - MS,
Missouri - MO,
Montana - MT,
Nebraska - NE,
New Mexico - NM,
New Jersey - NJ,
New York - NY,
North Carolina - NC,
North Dakota - ND,
Ohio - OH,
Oklahoma - OK,
Pennsylvania - PA,
Rhode Island - RI,
South Carolina - SC,
South Dakota - SD,
Tennessee - TN,
Texas - TX,
Utah - UT,
Vermont - VT,
Virginia - VA, and
Wisconsin - WI.
Not all insurance products from all insurance companies are available in
all states.
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