Variable Life Insurance California CA
Reader’s Question:
My friend is a life insurance agent here in California and recently told me about Variable Life Insurance, is this a good policy?
Mark
Anaheim, CA
Variable Life Insurance is a kind of long-term or permanent life insurance policy that uses many types of investment mediums to grow your money. This is similar to a Universal Life Insurance Policy in which the premium you pay is accumulated into a cash value that earns growth through interest rates (mostly through money market investments), whereas Variable life insurance policies allows you the freedom to choose where you would want your money invested. You can choose to have your policies cash value go into fixed income investments, through money market funds, stocks or bonds. You can even choose to diversify your cash value into several types of investments as well as change your investments multiple times in a year.
The downside of this is of course, if you chosen investment channels perform poorly, then so will your policies actual cash value there in California, which determines the amount of death benefit you get from the insurance policy (the death benefit however, could not fall below the original insurance amount you purchased). One of the reasons why people chose to invest in this type of life insurance policy is that it allows you to have a tax-shelter on your money since the death benefit is only taxed once it is awarded. Admittedly, Variable Life Insurance might not be for everyone but if you are investment savvy and want to combine the benefits of an investment portfolio and life insurance plan then a Variable Life Insurance Plan might be what you are looking for.
Tags: variable life insurance, life insurance, advise, life insurance policy
Whole Life Insurance Policy Texas TX
Reader’s Question:
I have a whole life insurance policy in Texas, can I benefit from the cash value option?
Raphael
Houston, TX.
Yes, Raphael, you can definitely benefit from the cash value option of your whole life insurance policy. But let me clarify one thing first. Cash value is different from face value. If you die, your beneficiary will receive money from your insurance company, that amount is called the face value. However, with the cash value option, you can access money even while you are still living.
I bet you’re wondering why should you get money from your insurance policy while you are still alive?
Cash value is the amount that will be given to you if you decided to cancel your policy. You can use it as a loan that can be used in a lot of ways, like for payments in case of emergencies. Or you can simply take your savings and enjoy life before you die. If you cancel your policy, you can get the amount of the cash value but with certain deductions. If you recently got a loan from your insurance policy, then the unpaid amount of the loan will be deducted from the cash value as well as any interest that have not been paid.
Now that we are experiencing financial and economic crisis all over the country, I believe that it’s better you contact your agent in Texas, so they can explain to you further the benefits of cash value. I think that with cash value, you will have a more flexible option should your family encounter some financial setbacks. Good luck!
Tags: life insurance, whole life insurance
Life Insurance Benefits Amarillo Texas TX
Reader’s Question:
I live in a safe and peaceful community here in Amarillo, TX. Do I really need Life Insurance?
Kelly
Amarillo, TX
Buying a life insurance policy means that the family you leave behind would have the money to cover the bills that you may have had, especially now that the funeral and burial expenses would most likely reach thousands of dollars.
And if you have a lot of properties, there also might be costs regarding the settlement of your estates. Aside from that, you also may have had various debts that need to be paid, such as medical bills that your health insurance did not cover. I personally believe that your family shouldn’t be burdened further by such debts and expenses especially during the grieving period.
Another reason to buy a life insurance policy is that you’ll be able to use it as a way of leaving something valuable to your loved ones. All you need to do is choose individuals from your family and add them to your list of beneficiaries so that they may be able to inherit your policy.
Aside from individuals or family members, you can also choose a charitable institution as your beneficiary. You can even make a much bigger donation by choosing a charity as your beneficiary than by donating the cash equal of the policy’s premium.
With these reasons in mind, having a life insurance does make sense even if you live in a safe city like Amarillo, TX.
Tags: life insurance, life insurance quote, life insurance rate
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