Long-Term Renewable Life Insurance Arizona AZ
Reader’s Question:
It seems that term life insurance policies are pretty cheap (I’ve talked to several life insurance agents here in Arizona about their rates) I do see myself wanting life insurance for as long as I’m alive, would it be better to buy 10-year term life policies and just renew as needed afterwards?
Dexter
Phoenix, AZ
You are right, term life insurance policies are quite cheap. But is this the kind of policy that is right for you?
With regards to your question, if it would be better to take advantage of low term insurance premiums and just renew afterwards, might be just fine in the short-run (like for the next ten years or so) but how about for the long haul? Since it seems that you prefer to have life insurance coverage for the rest of your life, let me help you avoid a common pitfall about term life insurance.
Term life insurance gets more expensive as you age, you may have been able to secure a good rate when you were younger (and healthier) but there is no guarantee you will get the same low rates again. You may have develop some illness or a medical condition making you un-insurable. You may already be too old by the time your policy expires, making the cost of renewing your term life prohibitively expensive.
Simply put it, you will spend a lot more in the long-run if you keep on renewing a term life policy. You are better off with a whole life policy that may be more expensive, initially, but will slowly become more affordable over time and would tuck away part of your money to grow and be available future needs. Or at least consider a guaranteed renewable term life policy that would allow you to go whole life in the future.
Tags: cheap term life insurance, term life, life insurance, advise
Investing On Life Insurance Arizona AZ
Reader’s Question:
Is there a type of life insurance policy that can also act as an investment vehicle for my retirement money here in Arizona?
Alistaire
Phoenix, AZ
Yes, there are types of life insurance available that can grow your money as you pay for it over the years, as well as maintain adequate amounts of life insurance coverage. And it is excellent that you are aware and specific about the goals you would want your life insurance policy there in Arizona to achieve. The nearest type of policy matching your requirements would have to be a Whole Life or Permanent Life Insurance Policy, specifically a Universal Life and Variable Life Insurance Policy. With these policies you would have a higher regular premium, however, a part of what you pay for life insurance goes into a type of savings account which accumulates cash-value and earns interest.
With a traditional whole life policy, your cash-value earns interest conservatively and the aim is for long-term growth. Universal Life Insurance will usually have a fund that is a pool of their policy holder’s premiums that is invested into diverse assets. Your premiums can also be adjusted depending on the goals of your policy, or how the economy is performing to preserve your policy’s cash-value. With Variable Life Insurance you are given more flexibility on where you choose to invest your cash-value and also allow multiple adjustments to be made into your policy’s death benefits every year. All of these policies are meant to be maintained for at least ten to fifteen years before you begin to really notice the growth of your money.
Tags: universal life insurance, whole life insurance, variable life insurance, life insurance coverage, advise
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