Life Insurance general info?

Question

I am looking for information on life insurance, really general stuff, like what the different policy types are and what should determine my decisions. Does anyone know of a general info site so I can arm myself with knowledge before talking to an agent?

Answer 1

2 Main types.  Term and Whole Life.  Under Whole Life, there are many different varieties.  Term does have a few as well.

For middle income families, term is the best choice.  Ask any person in finance who is not tied to an insurance company.  That is what they will say.

For decisions, look at how much you need, how much you can afford, the rating of the company issuing the coverage, what happens when the policy expires, etc.

Whole life is best suited for covering estate tax issues.  Which if you have more than 1.5 - 2 million in assets, is something to consider.    That being said, I am not an estate planner.

If your family has a history of medical aliments, make sure the policy is guaranteed renewable.

When you talk with an agent and get there opinions, ask them  exactly how it works.  Then talk to other agents.  Go with the one that offers it freely and with out a sales pitch.  They will usually have your best interest at heart.

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Whole Life policies are usually 2-10 times more expensive than Straight Term insurance.  Commissions are usually the first few years of premiums as well.

Answer 2

Don't know a specific site but most personal finance books would cover the basics - check out the local library.

First you need to decide how much you need. Basically, if you die how much would your spouse/kids need to survive. That can depend on your spouse's earning power, the kids ages etc.

Once you see the prices of whole life vs term you will quickly opt for term - by the way most term can be bought with rights to renew until say age 65. At each renewal the premium goes up. Don't let the insurance salesman sell you whole life or life with some investments e.g. variiable life or universal life. Good for his commissions but not for you.

Put the difference between the term and whole life in a good mutual fund and you will be better off.

Answer 3

Yahoo Finance, click on "Personal Finance."

Answer 4

Whole Life is the best way to go, but is also more expensive. Term is cheaper but will expire in a set amount of years leaving you without coverage. It can be upgraded to whole life later if needed. Best to talk to a Life Specialist who will go through everything with you.