What can anyone tell me about Variable Life Insurance?
479576
You have to decide if it is a good investment or not.\n\nI suggest you contact several licensed insurance agents in your state and tell them your wishes and needs.  Have them explain term insurance (which is geared toward covering a fixed amount of time - the "term") and permanent insurance (whole life, universal life and variable universal life).  You may also wish to contact one or more financial planners in your area to discuss your personal financial situation.\n\nDo not expect complete answers from a web forum.  You have not given full information about your financial position and needs.  I would not expect anyone to post that sensitive information on a website.\n\nBTW Jstmother's answer is a grave disservice to you and to the insurance world. It is very incomplete and misleading.
795324
Insurance policy is a service only. But it is also to gain profit. They estimate the average life time of the citizens and then only fixing their premium for life insurance. But there is also risk in it. There is a popular investment principle "Largest expected returns are associtated with riskiest ventures"
127544
Life insurance - seek out a Financial Planner who specializes in insurance and estate planning. DO NOT go to a captive agent (who will sell you whatever his company has to offer) or to anyone who uses a "multiple of salary" approach to determining your need for coverage. Online insurance sites are going to quote only term life for you, which may very well be the right thing, but it may not. The bottom line is to avoid anyone who is going to make their product fit your situation in order to make a sale.\n\nWills - be careful with DIY kits/software. Wills and trusts are usually controlled by state laws which can and do vary from state to state. DIY kits tend to use generic language which might cause propblems in some states. A worthwhile attorney will meet with you free of charge initially and will tell you how much your wills and trusts might cost to set up. If you must go DIY, make sure the software is very up to date and state specific.\n\nIf you happen to be near Philadelphia, PA check out my website, www.acanthusassociates.com and let me know if I can help you.
283680
Long Term Care Insurance is exactly that. One Company doesn't sell something different. They are all expensive and you get what you pay for. If you're going to buy a policy, shop around as they can vary quite a bit on price for the same coverage.
744842
The idea of "buy and invest the difference" begs the question "invest what?"\n\nThis is an old argument regarding the relative expense of temporary insurance (term) vs. permanent insurance (whole life or universal life).\n\nTruth be known, all life insurance is term insurance.  That is, every year, the risk of our dying increases and so the cost to insure us increases.  You "cover" that with the most basic component of life insurance - annually renewable term (ART).  Some companies still sell it.\n\nA person who has an ART policy pays a little bit more every year as the premium is reset higher to offset the increased risk to the company that the insured might die.  ART becomes so expensive later in life that it is virtually unaffordable.  Most carriers that still sell it won't continue the policy past a certain age, typically 65 or 70 years old.\n\nThe most common temporary (term) insurance today is level-premium term.  All the carrier has done with this type of policy is level out the premiums for a specific period (5-, 10-, 15-, 20-, 25-, or 30-years).  The premium payor doesn't see the annually increasing pricing because they are paying more than for the ART design during the first years that this type of policy is in force.  At the end of the level premium period, the premium soars and the coverage is usually allowed to lapse by the premium payor for non-premium payment.\n\nPermanent life insurance is ART with a levelized premium many times higher than any type of term policy because the policy has got to be profitable for the company no matter how long the insured lives.  Because you overpay so much money for this type of coverage, the carrier provides a "cash value" which can be accessed by the policyowner.\n\n"Whole life" is the most expensive kind because the company guarantees the death benefit as long as premiums are paid.  "Universal life" is less expensive than whole life because the company only guarantees the death benefit as long as there is still cash value in the contract.  \n\nIf you stop making premium payments in a whole life contract and do not authorize the company to keep the policy in force by borrowing the premium payment out of the cash value, the company will lapse the contract and send you a check for any cash value in the contract (overpayment of premium plus any return of premium for a given year - called a dividend -  that is in the policy at that time).\n\nIf you stop making premium payments in a universal life contract, nothing happens as long as there is cash value to pay for those annually renewable term costs.  When the cash value runs out, the policy lapses.\n\nSo, what's all the buzz about "investing" the difference?  People are saying that instead of loading up an insurance contract with permanent coverage and associated costs, buy term for the period that you are going to need a death benefit, and put the money that you would otherwise have paid for premium and save it or invest it elsewhere, like mutual funds.  The theory is that you can get a better return on your money by doing so.\n\nIs it a valid argument?  Sure.  But, you have to factor into the equation that money growing in an insurance contract is not taxed until it is taken out (if ever) and that the payment of a death benefit to the beneficiary(ies) is not an income-taxable event, in most cases.  Investment funds are usually taxed annually  as interest or dividends are paid, and may be taxed again when either past to the next of kin or the next of kin sells the investments to reinvest or get the cash out.\n\nWhich path is better?  It all depends on your ability to get a better after-tax return on your investments than the tax-deferred growth of cash value in an insurance contract.\n\nWith the advent of other tax-deferred investment instruments, however, such as IRAs, 401(k) accounts, etc., the tax advantages of permanent insurance policy cash val
88412
Probably the best benefit of life insurance is burials are expensive, and with life insurance, when you expire (die), your family will have enough money to bury you, pay off your bills, etc. (Depending on how much of a policy you get.) You can get life insurance policies through several different companies. Most of the time employers offer it with their health insurance policies. The best policy will vary with your individual needs. If you consult an insurance agent, they can better assist you with your particular needs. To check into it, visit these websites:\n\nwww.aigtermlife.com\nwww.insureapp.com\nwww.1stquote.com/company-list.htm\nwww.accuquote.com
393187
Term insurance is strictly insurance.  If you are looking to cover certain liabilities that will be paid off in a set number of years, then term life insurance is usually the answer.  If you are looking for permanent coverage, then whole or universal life insurance is usually the answer. This answer may sound fuzzy, but in order to give professional suggestions the best thing is to meet with an advisor that can go over your current financial situation to determine exactly how much coverage you need and what type is best.  Here is directory of local advisors: http://www.insuremylife.org\nAlso here is more info on how Permanent life insurance works: http://www.findlocalinsurance.com/permlife.html
589000
you can turn your whole life policy into a "Paid up" policy.  Check with your agent or company, this is easy to do.  Generally, whole life is a rip off and generates lovely commissions for the agent that sold it to you.  Term insurance is much much cheaper and provides a much greater death benefit than whole life.\n\nA downside to group insurance is that it goes away if you leave the job.\n\nAnother option for your policy is to stop paying premiums and let it go on an extended term option.  In other words the cash value will be used up over time paying for your 11,000 in coverage, but the covereage will convert to cheaper term.  Once the cash value is used up the policy will terminate\n\nAnother option for your existing wholelife policy is to cash it in and use some of the proceeds to pay for a greater amount of term insurance depending on your need for additional life insurance.\n\nMost people are underinsured.\n\nGawd insurance is WAY boring.
942729
Life insurance is a policy that pays a specified amount of money after your death to a beneficiary, a person you choose. The amount of money the person receives depends on the type of life insurance you purchase. The amount you pay to the insurance company, the premium, depends on the policy you select.\n\nToday more than 200 insurance companies write life insurance policies in the United States. Not all insure cancer survivors. Those that do offer life insurance policies for cancer survivors usually require survivors to pay a higher premium.\n\nYou may not want life insurance now. You may not be able to afford life insurance. However, if you think life insurance would help you or your family, options exist for cancer survivors. Survivors who want life insurance should understand the different types of life insurance and how having had cancer affects the type of life insurance they can get.\n\nGet a quote & more information here:  http://www.insureme.com/landing.aspx?Refby=614500&Type=life\n\nTake care,\n\nRon @ InsureMe
444048
Your best bet is to consult with an insurance professional.  All the major life insurance companies are reputable.  I would avoid anything on line.  An insurance professional will work out something for you within your budget and explain how to list your children as beneficiaries.  They do not have to be adults to be listed on your policy.
506351
Term: Known as "pure" type of insurance such as car insurance. It offers maximum coverage available for low amount of premium. People buying term know that they do not need life insurance forever because they have less financial obligations to pay off (like mortgages, kids) as they get older. People should consider investing in mutual funds when purchasing term.\n\nCash value: A savings plan attached to a life insurance policy. Also known as whole life, universal life, or variable life. A portion of your premium is going into your cash value and the rest into your insurance. When you decide to use it, you have to borrow it and pay back with interest (keep in mind, interest is kept by the company.. it is not applied to the cash value). Cash value are not good investment vehicles for retirement or for education because they earn an average rate of return of less than 3%.\n\nFinancial experts say you should keep investments separate from insurance because it is less expensive that way and you have better control of your finances.
631046
Depending on the type of cancer insurance policy you get it can be quite expensive. I am a member of a non-profit organization, and my cancer insurance was paid for by them as a benefit. When I got cancer, I was able to make a claim and they sent me money to help with my expenses. Investing in cancer insurance is different then life insurance and it is entirely up to you. If you are interested, you should investigate several different insurance agencies that offer it and find the policy that would be right for you, if you ever needed it.
878382
Wow Im a little worried about some of the advice you received.  An annuity is a policy with an insurance company that allows you to protect your money from probate, and yes it passes directly to your beneficiary within 7 days after the insurance co is notified.  Unfortunately too many people give their opinions about annuities when they have no idea what they are and why they are great retirement/estate planning tools.  Not to mention that Annuities pay higher interest rates than bank CD's and money markets, and Fixed annuities don't lose your money like the stock market and mutual funds.   Good for you for having an annuity, now that I have shed some light on what they are.  The answer to your question is YES.  Just like any investment, you will not avoid paying taxes on your annuity.  If it is Non Qualified Money, the taxable portion will be on the interest you have earned during the course of having the annuity policy.  If it Qualified money like an IRA the entire amount will be taxable.  The insurance company will be happy to take the approximate taxes right off the payout amount to help your beneficiary, or they can elect to pay it at the end of the year.  Estate and inheritance tax only effect a small percentage of Americans, so this probably won't be an issue for you.  Keep in mind that if this is infact in a Fixed Annuity and Not a Variable annuity, your interest has been compounding over the years tax deferred.  That gain is significantly better than you would have gotten in a CD, paying taxes on it every year.  Good for you.  Make sure you keep that money in an annuity, and that you are getting a FIXed interest rate, no in the stock market.  SAFETY
815576
The problem with life insurance is that people don't fully understand it, so they believe everything the life insurance agent says.\n\nLife insurance is suppose to be use as a protection of income, not as a tool to use for future goals. Reason why many life insurance companies sell cash value products is because they are more profitable than to selling term.\n\nThe problem with cash value is that when you die, your beneficiary will get the death benefit, but not the cash value. If you live to age 98, you are no longer covered, but you get the cash value. How many people do you know that actually live to age 98? Of those people at age 98 or above, how many are actually sane enough to know they even had life insurance in the first place?\n\nYou are correct that investments should be kept separate from life insurance, but the insurance agent is not going to show the client why it should be kept separate. Buying term and investing the difference is the most cost effective thing a person can do. Check out this blog about the cost between term and whole life: http://obe231.blogspot.com\n\nWhen people read that blog, buying term and investing the difference would make more sense.
793094
Hi, your friendly insurance guy here again. :)\n\nLong, but hopefully informative, post.\n\nLet's get the ugly bit out of the way first:\n\nTerm is cheap, Whole Life is expensive.  Whole Life pays an agent or broker more commission because it costs more and generally is given a higher percentage commission than Term products.  I mention this because there are a lot of people who hate Whole Life products and think the people who offer them are sleazy.  Thus, I am putting that bit out here right in front to satisfy the Whole Life Haters. :)\n\nHere's how Term Works:\nYou buy it for a specified period of time (typically 1, 5,10,15,20,25 or 30 years).  When that period, or TERM, is over, you can usually renew it yearly at a vastly increased cost until you reach a particular age.  The age at which you can no longer renew vaires by insurance company.  If you live past your TERM and have not renewed, your family gets nothing and you have lost all the premium money you spent (unless you have a "Return of Premium" rider, which not all companies offer and which is often extremely expensive to add).\n\nHere's how Whole Life works:\nYou buy it now.  It stays in force typically as long as you pay your premiums.  The payments stay the same forever; ther eis no "holy crap the renewal cost is insanely higher than last year."  It develops a cash value over time and in many cases the face value of the insurance goes up as well.\n\nThis, by the way, is the fallacy of all those people who say "the insurance company keeps the cash value when you die."  That's not exactly accurate.  As long as the cash value is in the policy, the typical function of it is to pay for additional face value of the insurance.  So yes, while you don't get a check for the cash value when you die, your death benefit will be larger than the original face value of the policy, making it generally a wash.  If you have had the policy for a very long time, the policy owner comes out ahead in many cases.\n\nThe cash value is NOT, NOT, NOT an "investment." That term is reserved for certain other things, like mutual funds.  It can be called a cash accumulation vehicle or a savings vehicle.  It is NOT an "investment."\n\nThe downside to Whole Life is that it costs a LOT more than the same face value of Term insurance - at least, in the short run.  If you buy a 20-year term policy for $100,000 at age 25, start renewing it annually after it runs out at age 45, and compare your lifetime costs, the Term policy will absolutely kill your wallet.  The Whole Life policy in the long run costs a LOT less than constantly renewing an old Term policy.  This does NOT mean Whole Life is for everyone.  It's only appropriate in some situations and for certain clients with specific needs.\n\nSo which one is the best?  This is the part where I hope folks who are shrieking "But...but Suze Orman told me to buy term and invest the rest" realize I am not some commission seeking scumbag:\n\nIT DEPENDS.  There is no "off the cuff" answer.  To know for sure which is the best for you, your specific situation needs to be evaluated.  Contrary to what other folks may say, I do recommend using an agent.  I do that because I am one and I treat clients properly.  If you go to an insurance company directly, you lose the benefit of having a local contact.  And guess what?  Generally life insurance companies are NOT going to give you a discount because there's no agent involved.  They charge the same and keep the commission money themselves.\n\nSo talk to an agent.  Talk to several.  Find one that you are comfortable with.  The agent should be focused on doing a full evaluation of your specific needs.  Be careful with anyone who says:\n\n"Buy Term and Invest the Rest." (they have a preconception of what's right without wanting to consider your case may not fit their mold - ask if they are willing to conside
392624
I'm always amazed reading answers from people who have no idea what they're talking about.\nIf you've had that policy for 20 years you'd be crazy to cash it in now.  You can never again buy a policy for what you are paying now because you are 20 years older.  It's good you have other insurances, but someday that term insurance is going to end.  The accidental insurance is only good while you're with that employer and if you die accidentally.  This policy will stay with you and the premium will never increase as long as you live.
344509
That is going to vary wildly because of such factors as the product, its intended use, your location and your ability to deal with liability issues on your own. In other words, if you are a sole proprietor with few assets and you market pacemakers and critical jet engine parts, you're in trouble. That's extreme but is designed to show how the insurance carrier views the risk.\n\nAfter all those variables you have the different insurance companies and their criteria and premium structure.\n\nMore details please.