Invest in Your Family's Future With Life Insurance By John Fagan Jr.

Insurance is the process of indemnifying an individual or a group against loss. It must be pointed out at the outset that insurance cannot be used for betterment. That is, it is not a means of profit but a means to reduce the amount of loss to a minimum. In no way can an insurance company reinstate a policy holder to a position where his or her position would be better than they were before the incident leading to the claim. In all cases the policy holder will have to bear some extent of the loss - in most cases it will be minimal.

Insurance is the process of paying a monthly fee - called a premium - to the insurance company as a safeguard against loss amounting to a certain sum of money. The monthly fee, or premium, is determined by the maximum amount the insured can be indemnified with. Should the insured land in a situation where he or she will suffer financial damages the insurance company will payout an amount to the insured or other agencies to reduce the financial loss of the insured.

There are many types of insurance policies and companies. There are government insurance agencies as well as private insurance agencies. These companies deal in health, insurance, life insurance, auto insurance, home insurance, and what not. In fact, anything under the sun can be insured. This is called general insurance.

We will discuss life insurance here with a view to using life insurance as an investment option. Life insurance is nothing but insuring ones life against a certain sum of money. Now, this does not mean that once insured one cannot die. It just means that your dear ones, called beneficiaries, will get a certain sum in case of your death.

The sum that the beneficiaries will receive on the death of the insured will depend on the amount the insured had agreed to in the policy and also depends on the timely payment of premiums by the insured. However, in case the insured services the insurance policy term, which is normally 15 to 20 years, he or she gets the total sum insured with interest at the end of the policy term.

This is where life insurance can be used as an investment. The insured will get back certain sums of cash out of the total sum insured at intervals of five or six years or as the policy may determine should the insured survive the period. If the policy is for 20 years the insured will get 4 installments of the sum assured. Then at the end of the policy he or she will get a lump sum of cash. However, in the event of the death of the insured the beneficiaries will get the total sum insured as well. This is where Life insurance can work out better than any investment plan.

Parents: "Your Family is

Counting on You. Term Life Insurance in Minutes. No Exam or Agent!

Whole Life Insurance, the Benefits By Pieter Benade

If you are reading this, you are probably committed to making sure that the loved ones you'll leave behind when you die are provided for. Not if you die, but when you die. It might not happen for a long time yet, or you could meet your end in an hour or two. It does not matter. One of the options you have is whole life insurance.

There are a lot of different policies out there. I am only going to look at the basic product and give you the most relevant benefits of whole life insurance. Before we get to that, lets quickly look at what whole life insurance is.

In its basic form it is a policy that pays a lump sum to the beneficiary when the insured person dies, provided that all premiums are paid and up to date.

As I have mentioned earlier, there are a lot of different products out there, each with specific differences. However, the basic benefits of whole life insurance over the spectrum remains essentially the same.

1. The main positive points are that it has a fixed premium over the whole period that the policy runs. You do not have to worry about inflation and other market fluctuations that could influence the premium. For the short term the premiums might appear to be a bit steep, but over the whole course of the policy this is canceled out.

2. Furthermore, and probably one of its best attributes, is that it can be used as an investment since it builds up a cash value as time goes by. This enables you to borrow money from it in times of need. Unlike loans from banks the interest is very low and you do not get penalized for not making payments. It is, however, wise to pay back what you borrow so you that the policy does not depreciate.

3. If you decide for whatever reason to stop paying or surrender the policy, you can get back the cash value that the policy has accumulated.

4. The cash value is also tax deferrable.

All said and done, the benefits of whole life insurance makes it an excellent policy to get at a relatively young age so that the premiums are spread out over a long period of time. The predictability of this kind of policy assures peace of mind.

Parents: "Your Family is Counting on You. Term Life Insurance in Minutes. No Exam or Agent!