Is Term Life Insurance Good For Young Families?

June 26 2008 by visitor in Life insurance leads |Comments Off

Reader’s Question:

Is a term life insurance better and more cost effective for young families like mine? I live in Seattle ,Washington.

Bob

Seattle, WA

For a starting family like yours, yes, a term life insurance is a perfect choice for your family. This type of life insurance is still reasonable for your pocket and is readily available in Seattle. Why should you choose this? Opting to get a term life insurance can safeguard within a certain period of time your family until your children can support themselves whilst you and your spouse are paying for your mortgage.

This policy also allows you to change it to a permanent insurance policy not needing another medical. In this way, it will be of an advantage especially if you have had any previous illnesses. Any cash allowances received by your children or spouse will be tax free. Now, if your policy ends or terminates, you have three options to choose from. Option one is for you to be able to carry on your insurance policy by paying a higher premium which annually increases, option two is to adapt a permanent policy and option three is to allow your policy to terminate. Most of the time, the last option is usually preferred by the policy holder. However, if you can change it to a permanent one, then it will be better.

Should You Buy Infant Life Insurance

June 26 2008 by visitor in Infant Life Insurance |Comments Off

Reader’s Question:

My life insurance agent in Seattle is saying that I should get a baby life insurance for my new-born infant. Apparently, getting a life insurance for my child while she’s still a baby would secure her just in case her health deteriorates. Would you recommend me to purchase one on such premise?

Joe

Seattle, WA

Not exactly, Joe.

For me, securing a baby life insurance policy might not be a very practical move, though I must also say that it has its own benefits. A few benefits from a baby life insurance policy, especially when purchased at age zero, would be the affordable rates. Yes, it guarantees your child’s insurability in the future even if her health shall deteriorate in the future. When the child dies, a baby life insurance policy can even offer burial costs. With regards to cash value, whole life insurance policies might accumulate funds for your baby.

However, on the other hand, since a baby Seattle life insurance policy is normally purchased at a low rate, the ‘cash value’ might not be that much for it to accumulate to higher funds. It might become useless, in this aspect. The remedy is to buy a term life instead if it is a baby life insurance policy. With regards to insurability in the future, does not rally count as a big factor since most insurance policies nowadays offer coverage even for people with medical conditions.

So before you join the bandwagon of millions of American households who purchase a baby life insurance policy, you can heed to my warning and weigh the worth of this risk. You can also dig some more information from the internet so you will see the bigger picture.

Just remember that your objective in buying a life insurance in Seattle, of whatever kind, is to secure your dependents lifestyle and financial future. It has to be giving more benefits than how much it actually costs and will cost you in the future.

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