Archives for August 2012

There are numerous types of insurance policies in the marketplace. Most consumers are familiar with term insurance policies which do not build any cash-value within the policy. The insured buys a policy that lapses after a certain period of time. For example, a 20-year non-renewable term policy will terminate after the 20^th year.  Term insurance is an excellent financial tool for those who wish inexpensive insurance coverage for a certain event. For example, a family may wish to have insurance protection to ensure that there are ample financial resources to pay for a child’s college education in the event that the family bread-winner prematurely passes away. Term insurance is relatively inexpensive because the experience of the life insurance companies is that the vast majority of the insureds do not pass away during the life of the policy and the policies lapse after the period of coverage. The policies lapse because the premiums become very expensive and/or the insured no longer has a need for insurance to cover the event for which the policy was originally written (e.g., the child has graduated from college).

Many people use permanent life insurance to fund their retirement. Permanent life insurance has a cash value that grows within the policy tax-free, and withdrawals can be taken out of the policy as loans which are equivalent to tax-free [Read more…] about IS IT POSSIBLE THAT YOUR LIFE INSURANCE POLICY WILL EXPIRE BEFORE YOU DO?