Thursday, April 4, 2013

Comparing Pros and Cons of Term Insurance Policies

Get an online insurance quotes: If you decide that term insurance is for you, the next step is to get quotes or online insurance quotes from at least three insurance companies and compare them. To help yourself make a worksheet with below listed question and and give a ratings to each company which helps your decision with the quotes.

1. Name of company 

2. Rating of insurance company
Rating from company 1 ______ ______ ______
Rating from company 2 ______ ______ ______
Rating from company 3 ______ ______ ______

3. Initial death benefit/ amount of insurance (Use the same amount for each company for easy comparison) ______ ______ ______

4. 1st year premium ______ ______ ______

5. Guaranteed 1st year dividend ______ ______ ______


6. Total paid first year (line 4 minus line 5) ______ ______ ______

7. 5th year premium ______ ______ ______


8. Estimated 5th year dividend ______ ______ ______

9. Total paid 5th year (line 7 minus line 8) ______ ______ ______

10. 10th year premium ______ ______ ______

11. Estimated 10th year dividend ______ ______ ______

12. Total paid 10th year (line 10 minus line 11) ______ ______ ______

13. Additional cost for options
Renewability ______ ______ ______
Convertibility ______ ______ ______
Re-entry ______ ______ ______
Other ______ ______ ______

14. Other options Age limit? ______ ______ ______ 
Decreasing term? ______ ______ ______

15. Additional cost if placed in a higherrisk category ______ ______ ______


Pros and Cons of Term Insurance

Pros                                                                                    Cons
At a young age, term                                Term insurance becomes more
insurance is considerably                             expensive as you age. In
less expensive than cash-                           addition, the dividends you
value policies are.                               receive are often much less than what        ......                                                           the company pays to cashvalue
                                                                        policyholders.

All the money you pay goes                     If you outlive the term, the policy
toward the death benefit                                 has no cash value.
policy. None goes to cash
value.

Very little of what you pay                          Insurance agents don’t often
goes toward commissions.                         encourage people to buy term
                                                              policies because they make
                                                               more money off cash-value
                                                                        policies.

Term insurance is simple to                      No tax advantages. In addition,
understand and does exactly                   due to inflation, a death benefit
what it is meant to do:                            that remains constant actually
protect your beneficiaries.                         declines in purchasing value
                                                             because the dollars buy less later
                                                            on. So in effect, the protection is
                                                                        less.




For The User 

******Usman ahmed owner of this blog created this post with his knowledge.All content provided on this blog is not copied from any other blog and site and is for informational purposes only and  The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site.The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information.

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