Arizona Life Insurance
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Do children really need life insurance?
Nancy
Phoenix Arizona
Everyone knows that life insurance is important especially to those who have dependents. However, most people are taken aback of the thought that purchasing life insurance for children is also necessary. Children don’t have any person depending on them nor an income to replace. Since life insurance is primarily designed to cover the loved ones that will be left behind once the policy holder dies, it might not make sense to most people to purchase one for their children.
On the contrary to what have been mentioned earlier, there is still one good reason why it does make sense to purchase cheap life insurance for children. Life insurance benefits are paid off once the insured dies and death is not something that is reserved to adults only. It may sound morbid but children can die too. It can happen at any time, at any child. It may happen in an accident at home, in school or at the road while walking to the bus. It may also be as a result of a serious illness such as leukemia. Such incidents are impossible to predict and you might not like to think about it, but getting life insurance would help you cover medical and funeral expenses in the event of an untimely death of your beloved child.
If you decide to purchase life insurance for you child, your first step is to check your own policy. Verify if you can add a child death benefit rider. There are several companies that have this feature. However, your coverage for this is only minimal which may be limited only to $5,000 or $10,000 worth of coverage.
If you want higher limits of coverage, you may opt for a separate policy for your child. But keep in mind that the premiums may depend on the company you choose, the age of your child and the coverage you want.
The quickest way to obtain cheap life insurance for children is to visit an insurance company website online. All you have to do is to complete a simple online application form. Once submitted, you’ll begin to receive quotes from several insurance companies. Remember to compare those quotes and choose the cheapest policy with the coverage you want for your children.
What are some of the benefits of having cheap Term Life Insurance?
Ted
Tempe, AZ.
Excellent Question
Since no one can tell the future, it’s not possible to know for certain whether the policy holder will or will not die during the term. Both parties take a gamble on cheap term life insurance.
In the event the policy holder does pass away during the term, the insurance company pays the death benefit to the beneficiary (or beneficiaries) listed on the policy. Death benefits are paid out with a one-time lump sum and this fulfils the insurance company’s obligation. The beneficiary is then free to do with the money what he or she chooses.
The money can be invested so it can be drawn upon as needed, it can be used to pay off the insured’s personal debt, it can be used to maintain the family’s established quality of life, or it can even be used to pay off a mortgage.
One benefit of selecting cheap term life insurance is that your monthly premium payments will always be the same. The amount you pay on the first month is the same amount you will pay on the last month. Having a fixed monthly payment for a fixed number of months makes it much easier when you’re trying hard to manage your finances.
With cheap term life insurance, you get a lot of peace of mind for a relatively small monthly investment. Of course the downside is if you don’t die during the policy term, your life insurance will simply expire and you won’t be able to recoup any of the money you’ve paid towards the policy.
What is participating and nonparticipating Whole Life insurance?
Frank
Tempe, AZ.
Frank,
Whole life policies can be issued as participating, or nonparticipating.
Participating policies typically cost more but may return annual dividends if the insurer has a good financial year. Dividends are never guaranteed. Nonparticipating whole life insurance offers no dividends. Buyers of whole life insurance like the certainty of fixed premiums with a known death benefit for life. They also appreciate the forced savings component and watching their cash value account build up.
Great Question.
Jul 11
Term life insurance has less bells and whistles that you normally find in permanent life insurance. The term policy is a pure death benefit type of life insurance. There are no cash value accumulations, loan values, or partial surrender values in term life insurance.