Post by Admin/YBB on Dec 21, 2020 18:55:31 GMT -6
#LifeInsurance may be bought privately or through group plans at work [these group insurances may disappear on job changes or retirement]. Medical UNDERWRITING is required except for group life insurance at work & some retail-insurance mentioned later. PREMIUM levels are preferred [lowest], standard & table-rated [highest]; premiums may be paid monthly, quarterly, annually or all-at-once [paid-up policies]. Many TYPES of insurance are available: Term [cheapest], level-term, universal [ UL], variable-universal [VUL], whole-life [WL; most expensive], etc. The first 2 types are temporary & their renewability should be considered; the last 3 types are PERMANENT & have CASH VALUES that grow tax-deferred. Most insurance should be bought for income provider(s) so that dependents can have some income continuity; a mix of mostly term & some UL/WL can be used to provide appropriate INCOME REPLACEMENT.
Avoid buying retail-insurance in small amounts to cover loans, cards, burial, etc – these don’t require medical underwriting & are very expensive because of high overheads. Don’t be swayed by low per day costs advertised for such insurance. While most companies use dedicated AGENTS, there are INDEPENDENT AGENTS that serve multiple issuers, & some companies issue DIRECT-SOLD insurance. Insurance agents get significant portion of first-year premiums & small percentage of premiums in subsequent years. There are many online QUOTE SERVICES. Be aware of the CREDIT RATING of insurance company [from A.M. Best, S&P, Moody’s, Fitch] – you want the company to be around when you will need that insurance. States provide LIMITED PROTECTIONS for insurance but don’t rely on it heavily as workouts for failed insurance companies typically take years. #PersonalFinance , 12/9/20 AM.
Avoid buying retail-insurance in small amounts to cover loans, cards, burial, etc – these don’t require medical underwriting & are very expensive because of high overheads. Don’t be swayed by low per day costs advertised for such insurance. While most companies use dedicated AGENTS, there are INDEPENDENT AGENTS that serve multiple issuers, & some companies issue DIRECT-SOLD insurance. Insurance agents get significant portion of first-year premiums & small percentage of premiums in subsequent years. There are many online QUOTE SERVICES. Be aware of the CREDIT RATING of insurance company [from A.M. Best, S&P, Moody’s, Fitch] – you want the company to be around when you will need that insurance. States provide LIMITED PROTECTIONS for insurance but don’t rely on it heavily as workouts for failed insurance companies typically take years. #PersonalFinance , 12/9/20 AM.