Permanent Or Term Life For Long-Term Needs Tampa Florida FL
Reader’s Question:
I have a fairly good idea of how permanent life insurance policies work, would it be a good idea to just go for a term life insurance policy and invest the rest of my money here in Tampa, Florida, somewhere else?
Eoin
Tampa, FL
This is a very interesting question. To some people, having to pay high life insurance premiums makes whole life insurance policies not a very popular first choice for coverage. The best way to answer your question would be to first identify your purpose of getting life insurance coverage there in Tampa, Florida.
If you are only getting life insurance coverage so that family members or people who rely on your income would have financial protection in case you pass away, then it may be better to just go with a cheap term life insurance policy and put the rest of the money into time deposits, your 401(k) or an IRA. Your money would most likely enjoy higher interest rates than it would most life insurance policies.
If, on the other hand, you plan to have lifetime life insurance coverage, and would want all of your money to eventually become proceeds to your beneficiaries once you pass away, you may want to consider a Whole Life Insurance policy than other investment mechanisms. First of all, proceeds from a life insurance policy are (except for a few instances) tax-free. With whole life insurance policies your beneficiaries are already guaranteed to get a huge amount of money once you die. The same can be said about term life as well but the cost of keeping term life in the long-run is much higher then a whole life policy.
Tags: permanent life insurance, term life insurance, life insurance advise, life insurance information
Life Insurance Settlements Florida FL
Reader’s Question:
I’ve heard of viatical settlements but not life insurance settlements. How does this work?
Chad
Tampa, FL
With viatical settlements, a person who is terminally ill can sell his/her life insurance policy for portion of the face value of the policy. With life insurance settlements, also called senior settlements, a policyholder, although he/she is not terminally ill, can sell the life insurance policy. However, under this contract, the investor who will buy the life insurance policy will only pay a portion of the life insurance policy’s face amount rather than getting what the death benefits would have worth. The investor will then continue the payments for the life insurance policy and will also receive the full amount upon your death.
This is not the same as merely surrendering your life insurance policy. When you surrender the policy, this means that you are selling the policy back to the life insurance company for a cash value. Furthermore, the amount of money that you will be receiving from life insurance settlement is substantially higher than that from surrendering your life insurance policy to the life insurance company. Life insurance experts say that the value of life insurance settlements is higher than the cash value by 25%.
Tags: life insurance
Life Insurance Rate Conditions Tampa Florida FL
Reader’s Question:
What kinds of conditions would make my life insurance provider here in Tampa, Florida, increase my premiums?
Gus
Tampa, FL
There are many things that can cause your life insurance rates there in Tampa, Florida to increase, but one of the most common factors would be your age. Of course a younger person would have less risk of dying sooner than an older individual, but it wouldn’t be just because one is closer to the end their lifespan as the other, however, the increased risk of dying due to illnesses or complications caused by unhealthy habits over the years would be a significant factor as to why older age is synonymous to higher life insurance premiums.
Life insurance companies also use mortality rates or tables where people fall into age categories and each category will have a statistically-based predicted number of deaths. These will influence how much premiums a life insurance company will charge your particular age group in order to compensate for death benefits costs in your age segment.
Changes in health, habits, lifestyle and even your job can also influence your rates however, changes in rates would be most profound for those who signed up for short or brief term life insurance and would have to renew more frequently as compared to those who signed up for whole life. So the type of life insurance policy you got would also play a role in how your premiums change. It would be best to consult your policy’s terms of agreement to determine exactly what factors can cause your provider to increase your premiums.
Tags: affordable life insurance, life insurance online, life insurance advise, life insurance rates
Smokers Life Insurance Rates Tampa Florida FL
Reader’s Question:
Is it true that I am paying my life insurance provider here in Tampa, Florida, by being a smoker?
Kevin
Tampa, FL
On average, those who smoke pay three or four times more on life insurance rates and premiums than non-smokers annually. So smokers like you are charged more due to the inherent risks associated with tobacco and cigar use. For example, for a policy of $500,000.00 worth of “Face Value” or the amount a life insurance company agrees to pay your beneficiaries in the event of your untimely demise, a non-smoker can get a monthly rate of $27 – $30 while a smoker may be charged from $60 to $70 for the same kind of life insurance policy. Doing the numbers with these figures and you probably already have an idea how much those packs of cigarettes are costing you on an annual basis, and that’s not including the estimated thousands of dollars an average smoker will be spending for medication or treatment due to smoking-related illnesses by the time they hit their senior years.
So if you can, quit smoking as soon as possible, your life insurance provider there in Tampa, Florida would probably encourage you from quitting by agreeing to lower your rates within two or three years that and you have managed to stay clean. If you are tagged as a smoker under your policy, it is recommended that you get in touch with your provider to see exactly what rates they can provide you, and when, for quitting smoking.
Tags: smokers life insurance, high-risk life insurance, life insurance, advise, life insurance information