HI friends

i am working guy i want do some savings and its shld help my family
i just want to know what is the and how to pay and how much i pay(cost) and its shld be paid in terms of months or a yearly or quatr or half of the year?

please help me out thank you.

 

  • sylvas90 11:50 pm on September 5, 2010

    Insurance is nothing more than a tool. You need the right tool to fix whatever problem you are trying to solve. For example, f cost is the major factor and you only need life insurance for a specific period of time, term insurance is your best value and should always be paid annually Its the lowest cost and it meets that specific time frame.

    If you want the highest value for the dollar spent and the time frame cannot be defined other then you may need life insurance until the day you pass away, Universal Life presents the best option for you and your family. The reason is as you pay your premium into a universal life policy, you accumulate cash value that pays interest. As time goes on, the accumulated cash value plus interest will exceed your cost of insurance. In other words, in some point, your policy will pay for itself and the accrued interest will result in a zero cost to the insured.

    The safest most conservative approach for you is Whole Life insurance. The Primary Reason is that you will fix the real cost of the death benefit at the age you buy it. This is a tremendous advantage for a young person who is in a declining interest rate market. In other words, Dollars and cents wise, this is the best value as ultimately the Insurance will pay for itself.

    However, as with all things, when you buy them you get three major components. The Highest value, the best level of service and the lowest potential cost. But in nothing you ever buy do you get all three at the same time.

    Here’s how your question really plays out in today’s reality. Term insurance has the lowest cost now, but will cost you the most over time because there is no cash accumulated value. It’s just like paying rent. You have roof now, but you don’t own the house. Universal life has the best service but you pay a higher price for it now. Because its interest rate sensitive, it may not end up being the best value for the accumulated cash. It’s just like owning a condo, you have value in the property, but you’re subject to all the other condo owners input. Whole life is best value in the long term. You pay more for it now, but over time the accumulated cash values well exceed what you have put in and the interest you earn is guaranteed. It’s like buying a house 30% below market value in a rising market, with a fixed interest rate mortgage of 4%. You can’t possibly lose as long as you hold it for a period of time.

    The best option though is to consult a qualified, knowledgeable insurance broker to find out which tool best fits your situation. If some told you one is better than the other, they do not understand the purpose of life insurance. There is no one size fits all, and each product is suited for a certain need.