Term and Whole Life Insurance


I'm married I have two children children and I'm the main income earner for my family so I learned most of the income for my family and we also have a mortgage.

We also have a mortgage and I'm hoping that my kids go to college and then we'll be able to pay for College college and I also want to make sure that my spouse if anything whatever happened can retire can retire cuz maybe maybe my spouse does not have the income-generating ability or maybe even if he or she does they would have to two large degree have to take care of children if anything would happen.

So because of all of these things that I want to make sure get paid off or get funded in the event that I die.

I think about getting life insurance. I think most of us understand that the general idea about life insurance you pay a certain amount on a regular basis and in the event that you were to dye your your relations whoever you whoever you put is a beneficiaries of your life insurance policy or you are a state those people will get some money.

But life insurance isn't quite that simple.


One version of life insurance is the other one is less simple so there's two types of life insurance what is term life insurance term life insurance and the other is whole life insurance


Life insurance is simpler so I go to the insurance agent of the insurance agent says look if you pay a premium if you pay a premium every year of $500.

$500 for the word premium literally just means the amount that you would pay every year if you pay a premium of $500 every year for 10 years so the term here is 10 years.

If you were to die at any point over those 10 years we will give you $500,000 right I guess it were more exactly will give your family or we will give the beneficiaries of your policy $500,000.

The beneficiaries are the people who would benefit from your policy who would get the payout if in the event that you were to die so over the next 10 years you'll pay about $5,000 if you were to dye your family will get $500,000 and the reason why this works out for the insurance company is it the insurance company figures out okay if you don't smoke you have good health it's unlikely that you're going to die in the next 10 years and so if the average it over many many thousands of people they're going to make money some people are going to randomly die but they're going to get the premium from everyone else and that's going to more than offset the payoffs that they need to give for the people who are just randomly are in accidents or who died for whatever reason the reason why this is called term life is that if you don't die after those 10 years you have to then get a new insurance policy if you don't get a new insurance policy after those ten years you didn't die nothing really happened you just keep on living all this money that you would put it in the event that you might have died if you didn't always find out what's on Fortune.

10 years was no from when you're 40 to 50 years old maybe that's the time that your kids started to go to college that give you enough time to save more money for retirement to give you time to pay off more of the mortgage and maybe save up some more money for colleges to say hey to 10 years was perfect for me if you think when you're 40 years old at a I want more time I want more time to pay off the more save money for college save money for retirement then you can make this a 20-year policy then you could make this a 20-year policy and if you make this a 20-year policy than your premium is going to be a little bit higher you go to paid every year but tires that you have a higher chance of dying from ages from ages 50 to 60 than you did from ages 4250 so the insurance company will figure out those probabilities and charge you a slightly more a larger amount but regardless anyway you look like anyway you look at it in a Term Policy you favor fixed premium for fixed-term if you pass away over that your family gets the payoff if they if you don't know that the policy just a and you have to get another term life policy and it's some point maybe by the time that you are 70 years old if you haven't if you haven't passed away hopefully you got it it's very hard to get a term life policy when you're 70 because you have a high probability of passing away between we don't want to we don't want to take that risk to the term life is really good if you feel that there's just a set amount in your life where you just want to make sure I'm around for the next 10 or 20 years to take care of a lot of obligations if anything were to happen and then my family can use the payoff from the policy to take care of these obligations for themselves and this is actually what I what I have I have a term life policy cuz I am I am right now 34 years old and I have a mortgage and I have a young child and I want to make sure that if anything were to happen to me.

Term and Whole Life Insurance Term and Whole Life Insurance Reviewed by Admin on June 08, 2019 Rating: 5

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