Types of Life Insurance

Planning for financial aspects after your life may be a gloomy prospect, but it is critical for the financial security of your family. Life insurance is too often overlooked because people arent clear about the consequences without coverage, in the event of your death, your loved ones may be severely impacted by the loss of your income. The single most important decision you make about your life insurance policy is that it best meets your needs. To begin, Life Insurance Info provides an overview of each type of life insurance plan available. By starting with a general overview of each policy type, you will be well on your way to making the best choice for you and your family. Request a free life insurance quote today!

Life Insurance by Type

Simply click the link below to get more information about each.

Term Life Insurance: affordable and flexible, provides coverage for a specified length or term. Permanent Life Insurance: provides coverage for the duration of your life. Term Life vs. Permanent Life: which is right for you? Whole Life Insurance: permanent insurance, where premiums remain the same through the life of the policy with a portion invested. Universal Life Insurance: similar to whole life, but more flexible with amount of premiums and death benefit adjustment. Variable Life Insurance: allows you to make decisions about where money gets invested. Variable Universal Life Insurance: allows you to adjust amount of death benefit, premium, and investment choices. Survivorship Life Insurance: insures both you and your spouse under one policy, with the proceeds payable after the second death. Joint Life Insurance: covers both spouses or multiple business partners. It pays out when the first person on the policy dies (which is where it's alternative name of "first to die life insurance" comes from). Convertible Life Insurance: allows you to convert to a different policy at the end of the term. No Medical Exam Life Insurance: policy does not require a medical exam for approval; not for people with serious health issues. Child Life Insurance: a policy specifically for a child. Senior Life Insurance: a policy specific to senior coverage. Group Life Insurance: specific to businesses providing life insurance coverage for their employees. Military Life Insurance: learn about the options available to retired military personnel and veterans.

Key Man Life Insurance: find out how you can protect your business with a life insurance policy.

You can also learn about Burial Life Insurance, Guaranteed Issue Life Insurance, Decreasing Term Life Insurance, Single Premium Life Insurance, Million Dollar Policies, Cash Value Life Insurance, Paid-Up Life Insurance, and Credit Life Insurance by reviewing their respective pages. For more information, visit the Life Insurance Basics section for terminology, uses and estimated rates.

Permanent Life Insurance

A permanent life insurance policy provides protection for your entire lifetime, with an additional investment component for maximum return on investment. The value of permanent life insurance is that protection is ongoing you never need to worry about the term of your policy ending or make decisions about what to do next, so your familys security is always maintained. Ask for a permanent life insurance quote today!

Benefits of Permanent Life Insurance

As mentioned above, the main benefit of a permanent life insurance policy is its longevity. It will be there for the duration of your life, earning value without your intervention. Along with this comes a stable premium that will never increase over the life of the policy. Additionally, with the investment component of a permanent life insurance policy, the policy is building cash value that is, money you can borrow against or withdraw for expenses such as a childs college education, or money that provides additional value for your beneficiaries when you die. The cash value growth of permanent life insurance policies are generally on a tax-deferred basis, meaning that you do not pay taxes on any earnings in the policy, nor do you pay taxes if you withdraw money from the policy. Request a permanent life insurance quote!

Drawbacks to Permanent Life Insurance

The single biggest drawback of permanent life insurance is that it costs significantly more than term life insurance. Depending on your financial status, you may not be in a position to pay the higher premium for permanent life insurance. Those who are unable to afford adequate coverage often skimp and may be underinsured as a result.

A second consideration of permanent life insurance is that requirements for approval are more involved including a medical exam, various forms of documentation, and health history information. Lastly, any loans that you take from the cash value that are not paid at the time of your death will reduce the death benefit and provide your beneficiaries with a smaller payout.

Types of Permanent Life Insurance

There are four categories of permanent life insurance:

Whole Life: premiums remain the same through the life of the policy; offers death benefit along with a savings account Universal Life: a flexible policy that allows you to adjust your premiums and the death benefit Variable Life: combines insurance protection with investment in stocks, bonds and money market funds Variable-Universal Life: a combination of the two types of policies

Permanent life insurance is best suited for people who:

Have a need for long term insurance coverage Want a policy to earn cash value to fund education, retirement or other expenses

Request a no obligation permanent life insurance quote!

Concerned About the Cost of Permanent Life Insurance?

While a permanent policy is more economical over time because the premiums do not increase, it may still be too costly. For a much lower premium, term life insurance provides affordable coverage to protect your family. If the investment portion of a permanent policy appeals to you, consider investing the money you save on a term policy to yield a greater return. Visit the Term Life vs. Permanent Life page for a comparison of the two insurance types

What is Life Insurance?

Perhaps a basic question, but an excellent place to start once you begin with an understanding of what life insurance is and its applications, you can start to make choices about which type of policy best meets the needs of you and your family.

In simplest terms, life insurance provides coverage in the event of your death ensuring that your family continues to have financial protection even when you are gone. The simplest perspective of life insurance is to look at the stage of your life and your financial means. Different types of insurance suit different life stages, needs, and financial abilities. The availability of various types of life insurance policies makes it easier to find one that is most applicable to your situation. Don't wait! Ask for a free life insurance quote! Kiplingers Personal Finance offers a tutorial on their website called Life Insurance Made Simple. This is an excellent overview of how your need for life insurance is influenced by your life stage: starting with no need when youre young, progressing to greater and greater need as you take on more and more responsibility, and finally beginning to diminish as you grow older. The following provides a synopsis of the stages of life and need for life insurance:

Single
At this stage, because you do not have dependents, there will be no one who misses your income when you pass away. While insurance may not be a necessity to protect your family finances, it should be considered. At a younger age, the rates will be more affordable.

Married
A small amount of life insurance is recommended at this stage - even though there are not yet children present, in the event of your death, the death payment of a policy would pay for mortgage/rent payments, credit card debts and funeral costs.

Married with Children

Life insurance is critical once children are present because your family would be greatly impacted by the loss of your income.

Retirement
At this point, your children no longer rely on your income and you are likely living off of your retirement funds. While not as much life insurance is necessary for this stage as compared to earlier in your life, it is still a consideration to cover funeral expenses and debts, as well as to supplement your surviving spouse's retirement money. Visit the Types of Life Insurance page for a listing of all available types and links to more information about each. Additionally, you can visit the other topics in Life Insurance Basics, including rate information, uses of life insurance, and discussions about the policy and company ratings.

If you're ready for a life insurance quote, request a free life insurance quote now. You'll see how affordable life insurance can be.

Do you have a pre-existing health condition? No Yes

Home > Basics > Life Insurance Rates

Life Insurance Rates

As with many purchases in life, cost is an important consideration. But shopping around to get the best rate on life insurance is a bit more complicated than looking for the best price on a new sweater. Life insurance rates are determined by factors such as your health, medical history, age, and whether or not you smoke.

Life Insurance Rate Class System

The cost of your life insurance premium depends on the rate class you are placed in following your application. Insurance companies make this determination by a number of criteria about your lifestyle and medical history. Rate classes are a reflection of risk factors such as being overweight, being a smoker, having high blood pressure or cholesterol levels, family medical history and driving record all play a role. Additionally, some companies also investigate your credit score and how risky your occupation is. Bottom line: if you have a healthy life, you are likely to have a better rate. Unless you opt for a no medical exam policy, you will need to undergo a basic physical, urine specimen, blood work, and possibly EKG or X-ray; the results of which will be factored into your rate classification. Request a free life insurance quote online today!

Life Insurance Rate Examples

According to an article from CNBC, a healthy 40-year-old male, nonsmoker could get a

$500,000, 20-year guaranteed level term policy for a premium of just $420 annually. The article also mentions that pre-existing health conditions can increase the rate and smokers can pay as much as 80% more for the same amount of coverage.

Strategies to Lower the Cost of Life Insurance

Keeping the cost low may be as easy as making some simple changes to your lifestyle. If you quit smoking, lose weight, exercise to maintain better blood pressure and cholesterol, you will likely improve your rate classification. These can all contribute to a lower cost of life insurance. Thoroughly research rates and companies online to get more information about their background and offerings. Ratings of insurance companies from sources such as Standard and Poors and A.M. Best can be very revealing. Look for companies with AA or A ratings, as this is a positive reflection of their stability to provide financial protection.

Online Rates for Life Insurance Plans

One of the best things to come from the Web is the ability to easily research any number of topics. In terms of life insurance, it can be incredibly easy to review life insurance policy information, companies and get free quotes. Simply answer a few questions and you can be on your way to receiving several quotes.

.Uses of Life Insurance

The primary function of life insurance is to provide financial protection to your family in the event of your death. Without life insurance, if you die, you are likely to leave your family with a financial burden as a result of your lost income. Beyond that, there are other functions of life insurance. Life Insurance Info examines both personal and business uses below; visit the Advanced Life Insurance Topics page for additional uses. Get a free life insurance quote

Personal Uses for Life Insurance

Your main objective for a life insurance policy is to provide a means for your family to meet financial obligations after your death. The following lists some of the major expenses as well as other personal uses for life insurance:

Funeral expenses the insurance payout can help with the cost of a funeral Medical bills if you need a lot of medical attention prior to your death, there are likely to be outstanding bills Mortgage or rent payments your family may be financially strapped without your income; the insurance payout would assist with monthly living expenses

Income replacement your dependents will need another source of income when yours is no longer available Estate planning for those with assets in excess of $2 million, the life insurance payout allows beneficiaries to pay off the costly estate taxes Charity/donation perhaps you want to leave your death benefit to a church, alumni association, or favorite charity Outstanding debts there may be additional debts following your death that the death benefit can pay for Loan a policy that builds cash value can be borrowed against for short term debts

Life Insurance for Business Purposes

Similar to personal reasons, business owners can also use the proceeds of a life insurance policy to protect a business financially, including:

Business continuation assists with transitioning a business from owner to family members, ensuring that the business continues to operate even after your death Key person a policy is purchased on the life of your businesses key employee; the payout allows the business to find a replacement Employee bonus provides a tax-deductible benefit to valuable employees

The Life Insurance Info website provides a number of helpful topics for those looking to purchase life insurance, including life insurance companies, types of life insurance and life insurance basics. Beyond the preliminary information, you may have more advanced needs for purchasing a life insurance policy. Request a no obligation life insurance quote! We will investigate each of the following in more detail:

Tax-free life insurance includes information about setting up life insurance in the most tax effective way Retirement planning learn more about how to include life insurance as part of your retirement plan Saving for college discover how life insurance can be included in your college savings plan Mortgage life insurance learn how your life insurance can help pay the mortgage bills after your death Estate planning learn how beneficial life insurance can be in estate planning Irrevocable life insurance trust discover how to set up a trust to remove your policy from your estate Funding the estate tax discover how life insurance can reduce your estate taxes Setting up charity/giving learn how to set up your policy to provide a charitable contribution

Protecting your business learn more about the business uses of life insurance Life Insurance and Traveling - find out how your travel plans can affect your life insurance rates, and why you should purchase a policy before you travel.

For many, a life insurance policy can be part of a larger investment plan. For others, it provides a tax break, retirement money, pays off a mortgage, or provides funding for college. No matter what your need, there is certainly a life insurance policy to fit the bill. Discover more about each of these topics and get your free quote today!

Growth Plan (ULIP)

A mix of insurance and investment ULIPs (Unit linked Insurance Plans) provide flexibility by way of making choice in terms of investment proportions. You can chose to invest certain percentage in equity whereas balance in debt funds. Or else you can invest in 100% equity or 100% debt funds. Choice to depend on your risk profile.

Retirement Plan (Pension)

All of us have to retire one day. But are we well prepared for happy retirement or are we the ones who sulk all the time about retirement. With plenty of investment avenues available today it is not at all difficult to plan for a peaceful retirement. It is high time that we seriously consider some pension plans in our investment portfolio which will not only take care of our retirement but also mid life career shift. Pension plans are important today as they will be source of regular income in our retirement phase.

Savings Plan (Endowment)

This is a plan which has a saving element in it along with insurance. Here the sum assured is paid either on death or on maturity when the term ends. In Endowment plans the bonus is declared every year which is added to the sum assured however bonus is non-guaranteed and depends on the profits booked by the company in that year. Policy holder can select term while taking the policy.

Childrens Plan

Our children are our pride and joy both and we want to provide them with the best but sometimes that becomes difficult to fulfill our dreams in want of funds. Nowadays not only school education but higher education has become very expensive and is bound to rise further with passing years. What to say of marriages of future. It is high time that we plan for there future well in advance with investing in proper investment avenues so that our hands are not tied when the need arises.

Protection Plan (Term)

All of us should be concerned about well being of our family in the event of our death. Thus insurance becomes necessary thus an important component in our portfolio. Protection plans purpose is pure protection and one should not look for investments here. It is any time advisable to sacrifice small sums today for the future of our family members tomorrow in case of any untoward incident.

Tata AIG General Insurance Company Limited is an Indian general insurance company, and a joint venture between the Tata Group and American International Group (AIG).[1] Tata Group holds 74 per cent stake in the insurance venture with AIG holding the balance 26 percent. Tata AIG General Insurance Company, which started its operations in India on January 22, 2001, provides insurance to individuals and corporates. It offers a range of general insurance products including insurance for automobile, home, personal accident, travel, energy, marine, property and casualty as well as several specialized financial lines. The Company's products are available through various channels of distribution like agents, brokers, banks (through bank assurance tie ups) and direct channels like Telemarketing, Digital Marketing, worksite etc.

History
Tata AIG General Insurance Company Limited (Tata AIG General) is a business Collaboration of the Tata Group and American International Group, Inc. (AIG). Tata AIG General merges two major finance organizations i.e. the Tata Group's prominent headship place in India and AIG's global presence as the world's leading international insurance and financial services Organization. This joint venture has started its operations in India from 22nd January 2001. The company provides both corporate and personal insurance services. The organization offers an array of general insurance covers which are well thought-out under commercial and consumer demands. The commercial sector covers Energy, Marine, Property and several specialized Financial covers, while the consumer insurance service offers a variety of general Insurance products such as insurance for Automobiles, personal accident, casualty, home, health

and travel. The company has made the availability for its services from end to end channels of distribution like agents, banks (through bancassurance tie ups), brokers and direct channels like tele-marketing, e-commerce, website, etc. The headquarters of the company is situated in Mumbai. The company has provided the employment to more than 2000 qualified professionals across the country in more than 160 locations.[2]

When Mr. Mehta decided to get life insurance to protect himself and his family, he had to be sure he was choosing the right policy. He had to buy a life insurance policy that caters to his needs, as well as his sons education needs and his daughter's marriage expenses. He was clear about that. These decisions could not be taken lightly anymore. When he was faced with his own mortality, it gave him the push he needed to save wisely and save for the future. His life insurance company helped him derive a formula that best suited his requirements and the requirements he has for his children. The various life insurance policies he could choose from are listed below:

Term Insurance
This type of life insurance policy is a contract between the insured and the life insurance company to pay the persons/s he has given entitlement to receive the money, in the case of his/her death, after a certain period of time. These policies can be taken for 5, 10, 15, 20 or 30 years.

Endowment Policy
In an endowment policy, periodic premiums are received by the insured person and a lump sum is received either on the death of the insured or once the policy period expires.

Money Back Life Insurance Policy

This policy offers the payment of partial survival benefits (money back), as is determined in the insurance contract, while the insured is still alive. In case the insured dies during the period of the policy, the beneficiary gets the full sum insured without the deduction of the money back amount given so far.

Group Life Insurance

This is when a group of people have been named under a single life insurance policy. It is popular for an employer or a company to add employees under the same policy. Each member of the group has a certificate as legal evidence of insurance.

Unit Linked Insurance Plan

ULIPs (Unit Linked Insurance Plan) offer the insured the double benefit of protection from risk and investment opportunities. ULIPs are linked to the market where the insureds money is invested to help earn additional monetary benefits.
Tata AIA MahaLife Gold is a traditional whole life insurance plan in which you pay premiums for 15 years and get a life insurance cover till the age of 100. You also get a guaranteed annual income throughout your lifetime.

Key Features of Tata AIA MahaLife Gold Insurance Policy

Guaranteed yearly payout of 5% of sum assured from the 10th policy anniversary Enhance the payouts that you get each year through annual cash dividends Your dreams are fully protected throughout your life with a life cover till age 100 Tax benefits for both the premiums paid and for the maturity benefit under relevant sections Create an income stream for life, get a lifelong coverage with a limited 15 year payment

Tata AIA MahaLife Gold Policy Details

You can purchase this for yourself or for your child:

For a healthy male aged 30, for a life coverage of Rs. 3,00,000: the annual premium works out to Rs. 26,823 (including service tax) per year for 15 years. From the 10th policy anniversary onwards, you will get a guaranteed payment of Rs. 15,000 each year, till age 100. Assuming a life expectancy of 80 years, over a period of 50 years, you will have received Rs. 6,15,000 guaranteed. In addition to this, non guaranteed payouts totaling to Rs. 10,88,100 will also be made from the 6th policy anniversary onwards. Therefore the total payout you will have received is Rs. 20,03,100 (i.e. guaranteed + non guaranteed payouts)

If taken for a child, it becomes an even better value proposition . Your wise decision today can benefit 3 generations. First, you get tax benefits for the premiums paid. Secondly, your child gets guaranteed & non guaranteed income for life with a lifelong coverage. Finally, your grandchildren can get the sum assured, which acts as a legacy. For a child aged 5 years, the premium for a coverage of Rs. 3,00,000 works out to Rs. 26,823 (including service tax). From the 10th policy anniversary onwards, you will get a guaranteed payment of Rs. 15,000 each year, till age 100. Assuming a life expectancy of 80 years, over a period of 75 years, you will have received Rs. 9,90,000 guaranteed. In addition to this, non guaranteed payouts totalling to Rs. 17,85,600 will also be made from the 6th policy anniversary onwards. Therefore the total payout you will have received is Rs. 30,75,600 (i.e. guaranteed + non guaranteed payouts)

Sample illustration of returns for Tata AIA Life MahaLife Gold Insurance Plan

Sum Assured Life Expectancy

= Rs. 3 lakhs = 80 years

Bonus offered in Tata AIA MahaLife Gold Plan

The bonus rates declared by the company for MahaLife Gold are as mentioned below. Bonus rates for 2011-12 - 26.4 per thousand sum assured Bonus rates for 2010-11 - 21 per thousand sum assured

Benefits you get from Tata AIA MahaLife Gold Plan

Death Benefit In case of death of the policy holder, the nominee gets the sum assured + 5% of Guaranteed Cash accumulated every year + Dividends/Bonus declared by the company.

In case the policyholder dies before the age of 4, the following payouts would be payable:

Age at the time of death 0

Amount Payable (Rs.) 20% of sum assured

1 2 3

40% of sum assured 60% of sum assured 80% of sum assured

Maturity Benefit The policy holder will get the Sum Assured if the person survives till the age of 100.

Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C. The maturity amount you receive from this plan are exempt from tax under section 10(10D).

Eligibility conditions in Tata AIA MahaLife Gold Policy

Minimum Sum Assured (in Rs.) Entry Age (in years) Maturity Age (in years) Premium Paying Term (in years) Payment modes Annual Premium Single premium 25,000 30 days 100 years 15 years

Maximum No Limit 60 years

Monthly, Quarterly, Half yearly & Yearly 2,500 NA No Limit NA

Additional Features and Benefits of Tata AIA MahaLife Gold Policy

Riders A host of riders can be purchased along with Tata AIA MahaLife Gold Policy

Type of Rider Accidental Death Benefit Accidental Death & Dismemberment Critical illness (or dread diseases) benefit Waiver of Premium Payor Benefit Term Rider

Available with Policy Yes Yes Yes Yes Yes Yes

Some other Savings Plans from Tata AIA Life Insurance

Tata Tata Tata AIA

AIA Life AIA

Life Maha

Maha Guarantee Shubh

Guarantee Flexi Life

Tata AIA Assure Golden Years ~ By Deepak Yohannan Note: This is a statement of facts based on the information collected from the Tata AIG Mahalife Gold brochure and insurance company's website. It should not be construed as a Critical or Favourable Tata AIG Mahalife Gold Review, Analysis or Recommendation. Insurance is a subject matter of the solicitation. Would you fly in a single-engine plane without a parachute? Would you go white-water rafting without a life preserver? Would you travel the desert without a canteen? If not, would that show a lack of faith in God? You may say thats absurd, but many people consider insurance a lack of faith.

Many people choose self-insurance or go without insurance while others take on too much insurance. During downtimes, insurance can be a financial lifesaver. But is it wise and godly to protect against illness, death, accident, or theft? Many refuse insurance simply because they

argue that it takes God out of the picture. However, Gods Word instructs us to prepare for good and bad times. When insurance is used properly it can help a family during a major illness or disability, it can provide replacement income for the loss of a spouse, it can rebuild a damaged home, and it can pay medical bills during an extended stay in a nursing home. Insurance will never cover every catastrophe, but it can be a wise way to protect the assets and income God blesses you with. You should also be careful not to allow insurance to be a replacement for God. Balancing wise planning and faith in God should be the goal of every protection planenough to protect your family, but not so much as to limit your dependence on God. In his book Money, Possessions, and Eternity, Randy Alcorn asks, But where does God fit into all this? The greatest danger in insurance is that it so easily undermines our sense of dependency on God. Is insurance a God-given means of provision, or is it in reality a theological end-run that makes trust obsolete and God unnecessary? The act of buying insurance in itself doesnt show a lack of trust in God; instead it demonstrates proper planning. God clearly wants us to provide for our families as demonstrated in 1Timothy 5:8: If anyone does not provide for his own, and especially for those of his household, he has denied the faith and is worse than an unbeliever (NASB). But we cannot be too greedy and slothful with our insurance policies either. Life insurance is a financial tool just like a mutual fund, a stock, or a CD. These tools are morally neutral. The attitude in using the tools determines whether insurance is being used properly in Gods eyes. Insurance should not be bought because of fear but rather with faith. Jeffs Legacy Jeff worked at a telephone company for nearly twenty years after graduating from high school. At thirty-seven, he was the sole breadwinner for his family. He always thought that his company would take care of him in the event of an untimely death. He was confident that his family was secure. He was a family man and loved spending time with his wife, Julie, and their two young children. They were fortunate that Jeffs income allowed Julie to stay home with the children. When he came in for an appointment, Jeff was shocked that he was underinsured. If he passed away, his group term insurance would have covered only two times his yearly salary. This would last only four to six years with his familys current expenses. His wife would have to go back to work and put the kids in day care. Jeff opted to buy additional life insurance to cover his income until the kids were through college. Sadly, this was the wisest investment that Jeff ever made. Less than a year after being accepted for insurance, he was diagnosed with brain cancer. Jeff never reached his thirty-ninth birthday. The silver lining in the story was the policy that Jeff bought for his family. He prepared and planned and left his family in a sound financial position. Julie says, Had Jeff not met with you, a tragedy would have been made worse. Yes, God could have performed a miracle. He could have used the church family to bail us out, but through this

policy, He was able to carry us through the toughest loss we ever faced. Julie has since gone to nursing school at night and become an RN. The insurance proceeds allowed her to pursue a passion rather than forcing her to take a job. Why Insure? Insurance provides protection for unanticipated expenses you couldnt otherwise pay. For ex

ample, in the case of Jeff and Julie, insurance was used to produce needed income after Jeffs death. Buying insurance is like looking ahead. If you knew you would face a financial problem down the road and could afford to protect your family and your assets at a fraction of the replacement cost, why would you not at least consider it? Insurance also frees up surplus funds. In Jeff and Julies case, Jeff made $85,000 a year. When he died, the family still needed at least $75,000 in yearly income. Social Security provided around $12,000 a year for dependent care. The family still needed $63,000 a year to cover the gap. Where would these funds come from? Jeff and his family could have saved over time, but in this case he had less than a year to live. The other alternative was to buy insurance, which he did, and that turned out to be the wise choice. No one knows what the future holds, but planning ahead is prudent and resourceful. - See more at: http://jayperoni.com/does-buying-insurance-show-a-lack-offaith#sthash.zIgvQtPW.dpuf