Personal Finance Resources

AD&D Insurance, also called Accidental Death and Dismemberment Insurance, is additional insurance which provides benefits for certain injuries and death due to an accident.  It is designed to pay out a large financial benefit to you in the event of a dismemberment (which can include either loss of limb or of sight), or to pay your beneficiary in the cause of an accidental death. AD&D Insurance is typically provided at no cost for some regular life insurance policies, and some companies provide an AD&D Insurance policy to their employees at no additional cost.  If you are a younger family or couple, than it is ideal to look into, as younger people are more likely to die from accidents than from natural causes.

Benefits

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Term life insurance vs whole life is a well debated subject.  What I hope to accomplish with this post is to give you a few facts, and my opinion on the best option.  But with regard to term life insurance vs whole life, it really will depend on your goals for the future. I have compiled a simple chart that should give you a nice idea of what the differences are between term life insurance and whole life.  Before we go on, you may want to review Term Life Insurance Definition and Definition of Whole Life Insurance. Ok, let’s review the charts, and then move on to some real life conclusions / recommendations:

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Whole life insurance is one of several types of life insurance you can purchase.  Simply defined, whole life insurance is permanent insurance that will last as long as the person lives and keeps paying the premiums. Whole life insurance is designed to provide protection for the whole life of the insured person. Whole life insurance is a good choice for you if you want to ensure that you have a life insurance policy in place for your entire lifetime and can comfortably afford the premiums, which will never increase. Also, many choose a whole life insurance policy to aid in their retirement planning.

Cash Value in Whole Life Insurance

Each whole life insurance policy has a guaranteed cash value, which usually grows based on a pre-determined schedule during the life of the policy and which should equal the death benefit upon maturity of the policy, typically at the age of 99 or 100.  Cash value in your policy will grow very slowly in the first few years of ownership, and as time goes on, the amount will increase more rapidly. The cash value in your insurance policy can also be used to  buy a paid-up whole life insurance policy in a reduced amount if you want to quit paying premiums, or you can access the cash value anytime from your policy in what is called a policy loan. Cash values are not paid to the beneficiary upon the death of the insured; the beneficiary receives the death benefit only.

Whole Life Insurance Premiums

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Just exactly what is term life insurance?  Why would I consider it? And why is my insurance agent pushing whole life over term life insurance? In this post, I want to help you understand the term life insurance definition, and why I prefer it over whole life.

Term life insurance is just what the name implies, life insurance for a fixed period of time, or term.  Term life insurance is generally substantially cheaper than permanent life insurance, and is known to be perhaps the simplest form of life insurance.  Term life insurance is the most popular type of life insurance today, and it is a great way to make sure that your family and other beneficiaries will be protected in the event of a premature death. Not only are they well protected financially, but they are protected without you having to pay a high premium payment every month.  

Term Life Insurance Coverage

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