F.A.Q.
- What’s the difference between term and permanent life insurance?
- Term Life Insurance
- Term Life Insurance provides a death benefit. Period. No cash value is accumulated. It is life insurance for a specific period of time – 1, 5, 10, 30 years or longer.
- Level Term Insurance
- With Level Term Life Insurance, the death benefit and the yearly premium remain constant during the life of the policy. For example, if you purchased a 30 year level term policy with a face value of $500,000, the premium will be the same each of those 30 years. Better insurance companies sometimes issue convertible term policies, than can be incrementally converted to permanent insurance. Term life insurance is generally more difficult to qualify for than permanent life insurance.
- Permanent Life Insurance
- Permanent Life insurance usually provides a death benefit and a savings or investment benefit. It is designed to cover a longer period of time, possibly your entire life! The premiums paid for permanent life insurance are generally higher than those paid for term life insurance. This is due to the cash value component of the contract.
- Types of Permanent Life Insurance
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- Whole Life – Designed to last your entire life, or about age 100. Premiums for the most part, are also paid for your entire life. The premium amount remains constant. But these policies build cash value – the main difference between term and permanent insurance. There are many choices on how your money is invested in whole life policies. Single premium whole life insurance can be used to immediately increase the value of your estate.
- Universal Life – Universal Life is also permanent insurance, but is much more flexible than Whole Life. Many companies allow you to make changes to the policy without issuing a new policy. These changes include premium amount and death benefit. You may be able to take a loan against the cash value of your policy.
- Am I obligated to buy insurance from Balanced Financial Solutions if you give me a quote?
- Of course not! We will assist you in finding the best insurance for your situation, even if we don't represent that company.
- My friends complain that they don't qualify for the quotes given to them by the "quotes only" sites. What's up with that?
- You never really know what your insurance rates will be until your medical information and physical examination results are reviewed by an underwriter. The "quotes only" sites don't tell you that. We give a realistic quote based on the information you give us. Then, after you medical information is reviewed, we get as close to the original quote as possible.
