Can anyone please suggest/guide which factors should i look for if i want to take Life Insurance policy at age of 31yrs.....and currently which company offering good policy.
I tried to find it on CD but still confuse. I don't want to call agent and ask as they keep bugging you calling.....
thx in advance.
1.Type of insurance required...term,life ,permamnent/whole life ,universal life etc.
2.Amount of insurance required.
3.supplementary benefits and riders if any.
most important of all purpose of taking insurance..
like in universal life insurance money can grow tax free, in term insurance term of coverage can be matched to need and in whole life it provides protection for the whole life of life insured it provides tax free cash payment to beneficiary upon deathamd also to cover taxes an dother liabilities upon death of the insured. there are many factors to take care of so either speak to an agent or try going to website of RBC or other insurance companies and try out free quotes online and decice as the baseline is always the payment of premiums.
please to read the following links to get an idea about life insurance
http://www.rbcinsurance.com/lifeinsurance/index.html
http://www.manulife.ca/Canada/ilc2.nsf/Public/lifeinsurance
Hope it helps s
Location: carl sagan's universe
Posted on: 13-01-07 16:44:19
Quote:
Originally posted by sendneeraj
Can anyone please suggest/guide which factors should i look for if i want to take Life Insurance policy at age of 31yrs.....and currently which company offering good policy.
I tried to find it on CD but still confuse. I don't want to call agent and ask as they keep bugging you calling.....
thx in advance.
There are tons of factors involved. Do you have a spouse/common-law companion? Do you have children? Do you wish for your loved ones to have money to cover the mortgage, education, relocation.
A common rule to decide how much is needed is to think what happens if I pass away now. How much money would my parents need? My spouse? My children? Or whoever- maybe a charity I wish to donate to. Also if I have children, how much money will be needed for their post secondary education? How much money do I have now saved? There are umpteen factors involved.
There are many good insurance companies Upto a certain amount everybody pays w/o too many questions asked. Some pay more rapidly than others. It is really best to consult an insurance broker or two, get a few pointers and then use the info to really decide what you want. If they call you and pester you, just be thick-skinned and say you're still thinking.
In my case, I took a term 10 insurance plan (valid for 10 years) and later w/in 2 years converted to a universal one.I also advise most of my new immigrant clients to do the same as practically all term (also known as temporary insurances) are convertible to a
universal or whole life policy(also known as permanent plans).
In simple terms I tell them that term insurance is like renting a home and universal life (UL) is like buying a home. They readily understand that.There are some companies out there that will even use part of the money you have paid for your term insurance to use toward paying for your UL policy when you do convert.
There are some people from the M.E. and Africa who come with lots of money and pay a one shot premium that covers them for all life and the money in the policy grows tax free.
A UL policy can be funded so that the money grows in it which you can use in your later years 'tax free'. It is more expensive than the simple term insurance which has no cash value built in it. A term insurance is like a car insurance- if something happens, it comes in use and if not, all the money spent goes down the drain.
If you need more info please do not hesitate to send me a msg.
If you go online to get quotes, some will give a 5 year term or 10 year term quote by default. Please bear that in mind. There are also 20 year term insurances.
thanks a lot guys............i am 31yrs old and have 4yrs old son.
I have heard about UL through my frd before but is it a good idea if i am planning to go back to India after say 10-15yrs..I am not citizen yet but I am plannin to stay here for atleast 10yrs for sure.
20yrs term is good too but later after 20yrs I will turn 50 and If I go for new Life Insurance policy don't you think i will have to pay more because of my age.
thanks anyway....plz keep posting your suggestions.
well risk is higher so the premium will go up as well.
Take a term insurance (convertible) it will take care of cash crunch now(low premium) and later convert it to full life if there is a need .
Location: carl sagan's universe
Posted on: 23-01-07 01:07:14
Quote:
Originally posted by sendneeraj
thanks a lot guys............i am 31yrs old and have 4yrs old son.
I have heard about UL through my frd before but is it a good idea if i am planning to go back to India after say 10-15yrs..I am not citizen yet but I am plannin to stay here for atleast 10yrs for sure.
20yrs term is good too but later after 20yrs I will turn 50 and If I go for new Life Insurance policy don't you think i will have to pay more because of my age.
thanks anyway....plz keep posting your suggestions.
It all depends on various factors. As a general rule of thumb (aah, don't you just love that hackneyed line), if you are planning to go back to India after 10-15 years, just take term 20. If you decide later otherwise, then change term to permanent. Anyway, all this is too general, you should meet with a coupla insurance brokers on a tete-a-tete basis and see what each says and then use the good old noodle. Don't see too many either or you'll get dazed and confused.
As a general rule of thumb, yeah you would pay much more after 20 years for the same amount of insurance, but then maybe you won't need that much insurance at that point of time. Hopefully your home will be paid off, your children will be in college or working, your parents may be or may not be...
Maybe the lifespan will increase and the premiums will be reduced, which actually happened recently a cupla years ago. Term rates were reduced so much that people who had taken insurance 2-3 years prior actually went for a new term paying less for the same term and insured amount.
I am sure other ins agents on this forum will corroborate my story.
thank you very much guys.....i really appreciate your help.
