Long Term Care Insurance.

What is Long Term Care Insurance?
Long term care insurance serves to help those individuals who need extra care and attention as they age. Long term care insurance helps to take financial burden away from family members, and for the individual in need of such care. Often, the elderly have very little income and no extra money. Yet, the cost of aging itself seems to be rising. Those who can least afford it are expected to pay huge healthcare costs.

This is why long term care insurance can be beneficial, and take financial burden away from those who cannot afford the high cost of healthcare. A long term care insurance policy may be purchased at any time, though policies are ideally purchased before the need for long term care arises.

Paying the Price of Long Term Care Insurance
Long term care insurance premiums and rates will usually go up as the policyholder ages. In some cases, long term care insurance will not be needed at all. In those cases where long term care is needed, however, long term care insurance can be invaluable.

The price of paying for long term care insurance is much less than the cost of paying for long term care. Healthcare these days is very expensive. Long term care, these days, is astronomical.

An average private nursing home room this year costs over 190 per day. Now, to receive 24 hour care at home costs more than 400 per day. Life expectancy for women is 80 years, five more than men. You want to stay in your home as long as you can. You want to choose where and how you receive long term care as you grow older. About sixty percent of those age 65 and older will need long term care. A third of those receiving long term care today are under 65
- Long Term Care web site, July 2006

Obtaining a Long Term Care Insurance Policy
Many insurance companies offer long term care insurance policies. It is always a good idea to shop around for the best rates and coverage when it comes to purchasing any type of insurance policy, but especially when it comes to health insurance.

Rates on long term care insurance will rise as time passes, but in general it is best to purchase a long term care insurance policy before the need for long term care arises. Do as much research and obtain as many quotes as possible when considering a long term care insurance policy. Make sure you know the rate at which the policy will increase and how much the long term care insurance will pay.

Understanding Your Long Term Care Insurance Policy
These days, simple insurance policies are so complicated that you almost need a translator to decipher the more complex language. Its very important that you understand the details of your long term care policy, including limits and deductibles that are applied to that policy. If you need help understanding a policy, you can consult with a lawyer. Do not sign up for a policy unless you understand every detail of that long term care insurance policy. You want to have all the details before you sign.

How Do You Know Long Term Care Insurance is Right For You?
Long term care insurance is for anyone who does not have an unlimited supply of money, who does not want themselves or their family to bear a heavy financial burden as they age. Long term care insurance serves to protect you, both financially and health-wise. Long term care insurance is a good idea for anyone, whether they believe they may need long term care or not.

By Robert Lawrence ,http://www.articleworld.net

How Much Renters Insurance Do you Need?

Want to know how much renters insurance you need to protect yourself, your loved ones, and your personal property? Here's what you need to know ...

Renters Insurance

Renters insurance is actually three insurance policies in one. It insures your personal property, provides you with personal liability protection, and it covers you if your home is uninhabitable and you need temporary living quarters.

How Much Renters Insurance Do You Need?

Personal property coverage - pays to replace your personal possesions when they're stolen, or when they're damaged or destroyed by fire, smoke, vandalism, plumbing leaks, or bad weather.

Expensive items such as jewelry, silver, furs, antiques, and collections are only covered up to a certain amount, so you may need to purchase additional insurance for them. Also, damage caused by flooding and earthquakes is not covered, so if you live in a flood or earthquake zone you'll need to purchase additional insurance to cover these disasters.

To figure out how much coverage you need, take inventory of everything you own and use the total value of your possessions as your amount of personal property coverage. Keep your inventory and sales receipts in a safe place so if you need to file a claim you'll have a record of what you own.

There are two types of personal property coverage:

* Replacement cost coverage which pays to replace your possessions.

* Cash value coverage which pays to replace your possessions minus a deduction for depreciation.

If you want total protection you need to purchase cash value coverage.

Personal liability coverage - pays for another person's medical bills and property damage expenses when you, your family, or your pets injure that person or damage his or her property. It also pays your legal fees if you're taken to court.

You want enough liability coverage to protect your assets in the event that you're sued. Most people opt for $100,000 worth of coverage, but if you have a lot of assets and investments you want to protect you can purchase additional coverage.

Loss of use coverage - reimburses you for any expenses you incur above and beyond your ordinary living expenses when your home is being repaired because of fire, smoke, plumbing leaks, vandalism, or bad weather. It covers your hotel, motel, and restaurant bills, plus other expenses that exceed your normal living expenses.

Standard loss of use coverage is 30% to 50% of the amount of your policy. So if you're insured for $100,000, your lnsurer will pay your living expenses up to a maximum of $30,000 to $50,000.

Where to Get Cheap Renters Insurance

Visit http://www.LowerRateQuotes.com/renters-insurance.html or click on the following link to get cheap renters insurance quotes from top-rated companies and see how much you can save. You can get more insurance tips in their Articles section.

Author: Brian Stevens ,http://www.articlesbase.com

Home Insurance: An Absolute Must.

No one can deny the obvious fact that life these days have become extremely expensive and uncertain. As such it becomes imperative that people find ways and means of protecting themselves against all sorts of calamities - man made or natural. When it comes to protection against calamities then one thing that immediately springs to mind is insurance.

Indeed its a big relief for people who have suffered some sort of financial loss as it rectifies the damage on its own with the owner not required to spend a single penny. Its importance magnifies manifold if the loss is big. Simply put greater the loss greater is the need felt for insurance. And if the loss includes damage to your home then the importance of insurance can easily be understood.

Indeed home insurance is extremely popular and its popularity is not confined to UK alone, in fact it is a world wide phenomenon. And why not, people spend their life's earning in making a dream house for themselves so it is very natural that they would take all sort of precautions that in case any damage is done to their house they can recover the amount and can make another one without much difficulty.

Home insurance provides a security cover against probably all sorts of risks that might threat one's house. It provides security against risks like fire, earthquake, storm, lightning, flood, theft, burglary, riots, vandalism, fire, explosion, subsidence, burst pipes, civil upheaval, water leakage, oil leakage, impact from vehicles, falling trees, air crafts etc.

However, to gain maximum advantage from Home Insurance one must keep certain points in mind. Firstly see if there is any special offer on home insurance, then check whether the policy covers the entire value of the house, never furnish any false detail to the company, ensure that the policy comes into effect from the day it is signed, confirm whether the minimum amount required for claims is satisfactory, review the policy periodically and update wherever necessary and lastly inform the insurance company if any alteration is made.

If the above precaution is taken then there is no reason why one's decision to opt for home will not bring him rich dividends.

By Allan Elvin ,http://www.free-articles-zone.com

Long Term Care Insurance Policy.

Most young people ignore the fact that they will grow old one day. It is the wise ones who not only think about it but also provide for their future. Statistics show us that almost one out of two Americans require long term care when they grow old. Due to immobility and illness people become dependant on families and institutions to carry out normal daily activities such as dressing and bathing.

Long-term care refers to a system where this can be taken care of in your own home, a hospital, a home center or an assisted living facility. It could be a reality to many who have led a strong and active life earlier. This is why its importance is growing each day. Most Medicare programs and State Medicaid programs do not provide the necessary facilities for payment. Some only cater to those who fall below the poverty line. Therefore, it is prudent to consider applying for a Long Term Care Insurance policy early in life.

If you have worked all your life and have made a substantial saving, then perhaps you can fund your own long-term care. Unfortunately, not everyone is so lucky and therefore long-term care insurance is very vital to secure a safe future especially for those who have a history of health problem in the family.

Like for any other policy, it is best that you know all the details prior to buying one. Often times, people forget that premiums for life insurance policies increase over time. This makes it difficult to pay especially when there is no enhancement of the financial situation. Thus, policies are cancelled when they are needed most because policyholders cannot continue to pay high premiums. It is easy to get drawn into buying a policy because market savvy sales executives make it sound so easy. But, it is up to the individual and insurance advisors to properly instruct prospective customers.

One sure way of protecting yourself is to be sure of all the terms and conditions given in the long term care insurance policy document. If the insurance sector is not your cup of tea; you could hire an agent or a broker who will act on your behalf. They will be experts on quotes, claims, processes and other issues. You need to also be careful on selecting the right broker at the right cost. Long-term care insurance not only provides security for you, but for the entire family. So you can take their advice before buying a policy. Remember, to choose an insurance company that is reputable and trustworthy. You can take it for granted that sales people will only state the benefits of a policy. They will not tell you the flip side of the story. Do not rely on brochures and other sales oriented literature to make your decision.

To summarize, a long-term care insurance policy can be used for different types of long term care such as skilled nursing, intermediate nursing and custodial care. The kind of care you choose largely depends on your physical health and situation. This kind of insurance is definitely worthwhile and affordable when you think of life beyond 65 years of age.

Robert co-founded Insurance4USA.com, an insurance quote shopping service - http://www.insurance4usa.com , in 1999. He has been a licensed insurance agent in New York State since 1990.

By Robert Lawrence, http://www.articleworld.net

How to Get the Best Term Life Insurance Rate.

No one likes to think about life insurance, but as a responsible adult, you need to make sure your family will be financially secure if you die. Fortunately, term life insurance is available for a relatively low monthly fee. Follow these tips to get the best term life insurance rate.

What is Term Life Insurance?

Term life insurance pays a death benefit to your beneficiaries if you die while the insurance is in force. It doesn’t accumulate any cash value and your coverage ends when you ...

* Live past the term and don’t renew your policy

* Stop paying the premium

Get Enough Insurance

Experts recommend that you buy five to ten times the amount of your annual salary in life insurance, depending on how many children and how much debt you have. If you don’t work outside the home, you need enough life insurance to help pay someone else to take over your duties, such as looking after your children.

Choose a Term

You can buy term life insurance for periods of one to thirty years. Common terms are five, ten, and twenty years. You may be able to get a better price by purchasing a longer term policy.

Some term life insurance policies are “level-term,” which means the price you pay remains the same throughout the term of the insurance. In other term life insurance policies the premium increases slightly each year as you grow older.

Compare Quotes

To get the best rate on term life insurance, you need to get quotes from several different companies and then compare them. The easiest way to do this is by using the Internet. When you sign on to the Internet go to an insurance comparison website. Here you'll complete a short form with information about yourself and your insurance needs. After that you'll receive quotes from multiple life insurance companies.

On the best insurance comparison websites you can even get quick answers to your insurance questions by talking with an insurance professional through an online chat service. These sites only deal with A-rated insurance companies, so if you buy insurance through them you'll get it through a reliable company. (See link below.)

Visit http://www.LowerRateQuotes.com/life-insurance.html or click on the following link to get the best term life insurance rate quotes from top-rated companies and see how much you can save. You can also get more insurance tips there.

Author: Brian Stevens ,http://www.articlesbase.com

African-Americans and Life Insurance

Have African-Americans been neglected, in understanding the need for life insurance? What has shaped African-Americans viewpoints towards life insurance, and what can be done to change some of these misconceptions?

The days of the debit insurance agent chasing your grandmother to collect the 10 cent premium have long gone. Yet in many ways, this interaction still has a chilling affect on many in the African-American community. At one time, life insurance in the African-American community became known as "burial insurance." African-Americans were allowed only to buy a small policy to bury themselves and this is how it was marketed to them. Yet many times, their Caucasian counterparts, who had the same type of insurance policy, paid less and were offered more coverage. However today underwriters of life insurance are not allowed to know the race of individuals applying for insurance.

Present day in the African-American community, some still have the "burial insurance" mentality towards life insurance. Yet many African-Americans have been upgraded, and have enough insurance to pay off their homes and to bury them. Through careful marketing in the late sixties and early seventies, African-Americans were steered to buying additional life insurance when purchasing a home. It seems creditors wanted to make sure as African-Americans moved into homes, that their investment in the mortgage would be paid off in the event of a premature death. As some African-Americans found new avenues of success in their careers, thanks in part to the civil rights moment, many of these individuals found themselves approached by insurance agents who began to enlighten them on life insurance. The "burial" and "mortgage protection" attitudes life insurance were replaced. Life insurance became the following:

1.

To pay off all debt
2.

Provide income to the spouse and children left behind
3.

To set up a trust to leave money to their church or organization
4.

Pay for children higher education including college, in the event of a death
5.

A way to keep key employees from leaving current employment
6.

A vehicle to buy out children not involved in the family business

Others African-Americans have fallen into I have "life insurance at work trap." At work you have $30,000 of life insurance or two or maybe three times your salary if you are lucky. Let us say you make it to retirement age with your company, and make $60,000 a year at the retirement. Many times you are allowed to convert your group life insurance at attained age, into a whole life or universal life insurance policy. You will not be paying $5 a month for your group insurance at retirement. So if you are a sixty-five year old male, and you want to keep $100,000 worth of coverage by converting your group insurance, you might see a premium of $469 a month. You might think it is not fair, but this is reality. Also sometimes you are allowed to keep one times your salary of insurance at retirement, then it cuts in half by age 68 and levels off at $10,000 at age 70. While others, still have no life insurance from their company's group insurance at retirement, because there is no conversion privilege.

If African-Americans have been buying life insurance for a death benefit or "mortgage protection," how are they being neglected? Unfortunately, some African-Americans' life insurance policies are so similar, that you would think they were lined up in the room to buy it. Purchasing this product should be based on your particular goals, keeping your family obligations in mind. People in the upper echelon of the African-American community, usually are aware of the uses of life insurance, and use them to better the lives of their families and businesses. There however seems to be a lack of financial planning and insurance knowledge transfer, from the elite in the Africans-American communities, to those who have less or not considered to be part of the professional class. Also, unfortunately some insurance agents try to sell products to American-Americans, instead of educating them, so that they can educate others about these subjects.

It is all about education in the African-American community, especially when it comes to life insurance. For many African-Americans, they turn to their ministers for guidance about insurance and financial planning. Hopefully their minister has gotten the message, and are willing to share their knowledge with all of their members. Otherwise we will continue to have a community, where children are orphaned because of the lack of proper life insurance or the spouse has lost the house, because they could not afford the mortgage. You have to be able to look past this year, $30,000 may take care of your daughter for a couple of years but Social Security will pick not pay the cost of raising a child. Some in the African-American community will spend $500 on a car note, but do not you have enough life insurance to feed, clothe, or send your children to college, as well as provide income for their spouse if they die. While some echo, "I do not want to leave my family rich," it is better to leave your family rich than poor.

By: Jason Cunningham

Understanding Life Insurance

Term Insurance - Form of Insurance that usually last for a certain period of time. (i.e. 30 year term) After term is over you have to replace ice. No cash value usually in the policy. Main types: Level Face-where the face or insurance amount is the same throughout the period. Reducing Term-Usually coincides with mortgage or other personal debt. The policy face or insurance amount decreases over time, often based on debt obligations.

Whole Life -Type of insurance that you pay for your entire life. Level premiums and usually can borrow from cash value. An insurance that gives you the ability to have more insurance through the build-up of paid-up additions.



Universal Life - It is life insurance that is a Combination of Whole Life and Term. Can build cash value, but is usually not good for anything if it is allowed to lapse. Usually cheaper than whole life but can last a lifetime if funded properly and sold correctly.

Variable Universal Life - A policy that is made of term and separate accounts (not mutual funds) and has a designated face amount. Policies have either a level face or an increasing face. The premise of the policy is to hope that the separate accounts in the policy outperform the returns in the other types of policies mentioned above. The cash value is based on the market-based returns of the separate accounts in the policy minus any expenses of the policy. The prospectus as well as a quarterly statement will reveal the returns of the separate account.

Disclaimer: Always consult a financial profession to determine what coverage is right for you.

By: Jason Cunningham

A Life without Life Insurance

For whatever reason, buying life insurance has been reduced to an afterthought. Many of us are uncomfortable with facing our own mortality. Yet others do not see the value of life insurance because they are single, or will not live to receive the tangible benefit of having this coverage, unlike health insurance. Maybe you have been turned down for coverage because of a health condition, but most still can qualify for a graded death benefit policy.

Many people have life insurance at work. This usually comes in the form of term insurance. Term is insurance for a specific amount of time, and once it expires due to retirement, dismissal, or resignation, there is no benefit ( Some employers allow a reduced amount of insurance at retirement, usually a declining scale that often levels off at age 70, e.g.. 50,000 at age 65 and $25,000 at age 70). If you are dismissed from your job; you are without coverage unless you convert your group insurance into a whole or maybe universal life policy.

Some people have been conditioned that life insurance is for death benefit only. So buying life insurance, sometimes is not a priority until their mid-fifties or even late sixties when they retire. The problem is none of us know when we are going to die. You can literally cause your family to sell the family home, cause your spouse to work an extra ten years, and the brainy child may have to go the state university instead of your Ivy League alma mater (Some state colleges and universities are excellent. Go Buckeyes). If for nothing else, enough life insurance should be purchased so that loved ones are not left with your unpaid bills.

Life Insurance Uses:

* Death Benefit
* Provide income to pay off the mortgage in the event of death
* Replace lost income that your spouse and children would otherwise miss
* Make sure that future college tuition can be paid
* An effect way to pay off children and spouse who do not participate in family business
* To pay possible Estate Taxes
* To provide liquidity when many assets are tied into Real Estate

By: Jason Cunningham

The Term Life Insurance Solution

Is Term Life Insurance Right for You?
Most people have great plans for themselves and their family and, quite often, those plans require a good deal of funds. Whether it's sending children to college, purchasing a new home, or starting a business, adequate financial resources are essential. Your income is the engine that powers these dreams, helping to turn them into reality, but what if you were to die? How would this affect your family's future plans?

For generations, life insurance has proven to be one of the most cost effective ways to safeguard a family's dreams. You can never be replaced but, with life insurance, your family could probably handle the financial pressure that comes with the loss of income due to premature death. The proceeds of life insurance generally pass to your beneficiaries free from federal income tax and can be used to help preserve your family's standard of living, cover outstanding debts, and keep their dreams alive. For many years, term life insurance has proven to be an effective means of providing protection for those who need coverage for a limited period of time.

Why is Term So Popular?
Term insurance is perhaps the most basic form of life insurance. It usually provides affordable protection, often with a guaranteed premium, for some period of time. If the insured should die while the policy is in force, the face amount is paid to the named beneficiary. At the end of the premium guarantee period, the insured can renew the coverage at a higher premium. The premium for term insurance is initially lower than a comparable permanent insurance policy; however, it can increase at each renewal. This initial lower premium usually makes term insurance an ideal choice for individuals with a temporary need for life insurance protection.

Unlike permanent insurance, term does not accumulate cash value, and in most instances does not earn dividends. There are two basic types of term policies: increasing premium term, which renews annually at a higher premium, and level premium term, which features a fixed premium for a specific number of years and then increases in subsequent years.

When is Term Appropriate?
Term insurance may be suitable in several situations. Here are just three examples:

* Temporary Need for Protection
Term insurance is often used as protection when a loan is taken. A term policy in the amount of the loan could assure that the debt is repaid in the event the insured dies. A business owner who borrows money to enlarge his or her operation could purchase a term policy in the amount of that loan. Often, homeowners choose term insurance to protect their mortgage over the life of the loan, or, parents who are funding a child's college education could use term as a hedge until that child graduates. Whenever life insurance is needed for a relatively short period of time, term may be the solution.
* Limited Funds for Permanent Life Insurance
In situations where life insurance is essential but dollars are scarce, term could serve as a stop-gap. Individuals fresh out of college and starting a career may want to consider term coverage. If they're like many students, they probably have student loans that need to be repaid. If they should die before the loans are repaid, that obligation could fall to their estate. Term insurance could safeguard against that, and when they've achieved some level of success and have sufficient funds, they can convert the term policy into a permanent insurance policy.
* As a Supplement to Permanent Life Insurance
An excellent use of term insurance is as an added "rider" to a permanent plan. Let's say an individual requires $200,000 in life insurance coverage but can't afford the premium for a 100% permanent plan. An affordable option may be to purchase a $50,000 permanent policy with a $150,000 term rider. That mixture would provide the desired amount of coverage with more limited cash value accumulation, at a premium that fits within a given budget. In the future, when income increases, the term portion can be converted into permanent insurance.

The Conversion Privilege
One of the most valuable benefits of a term policy is the conversion privilege. Many term policies offer the ability to convert term coverage into permanent insurance without submitting proof of good health. This privilege is usually available during the first several years of the policy. If permanent insurance is not within your budget at the present time, the conversion privilege guarantees your insurability at a later date — even if you become uninsurable.

Most companies offer different possibilities for conversions, so be sure to discuss these options with your agent when you're ready to convert. Your agent can supply a computer-generated illustration to help you make your decision.

What to Look For in a Term Policy
When choosing a term policy that's right for you, you'll want to be sure to look closely at the features it offers.

Be sure that the policy is guaranteed renewable — that is, you can renew your policy without a physical exam. Also be sure that it contains a conversion privilege. These two features together offer protection of your future insurability.

Some companies offer a rider to extend the premium guarantee (sometimes called a modification of premium guarantee rider), which, for an additional cost, guarantees that for a limited time, the premium will not be greater than the scheduled premium stated in the policy contract. This could give you the peace of mind that, in the short term, premiums won't be out of your price range.

For many years, insurers have offered a lower cost premium to non-smokers. Recently, some companies have added an additional standard premium class for individuals who smoke, but are otherwise in good health, and non-smokers with minor medical impairments. If one of these situations applies to you, it could save money to look for a company that offers such a rating class.

Most experts say it's not advisable to simply shop for the policy with the lowest premium. Before worrying about saving a few bucks, you'll want to be sure that the insurance company is financially sound. Longevity, size, and ratings are key considerations when choosing an insurance company. You can check the financial health of insurers by reading what the independent ratings agencies say about them. A.M. Best and Standard & Poor's are two companies that annually publish ratings of insurance companies. Check your local library for ratings. You can also click here to see "What the Ratings Agencies Say about New York Life.

Buy Term Life Insurance & Invest the Difference?

A Twist On an Age-Old Argument

It's been debated for generations. Term life insurance versus permanent life insurance? Which one is "better"? In recent years a new concept has crept into the debate: rather than choosing a permanent life insurance policy, you purchase a lower cost term insurance plan and invest the difference, usually in mutual funds.

This approach may be well suited for some people, but for others it may not make sound financial sense. You'll want to make an informed decision, so it's best to discuss your needs and your options with an insurance professional. Before you make up your mind, you'll want to consider the following questions:

Which Type of Life Insurance is Best for You?

No matter what you may have read in financial advice columns, there is no one "best" type of life insurance. What's best is what is best for you. Life insurance is not a "one size fits all" product. There is a wide range of permanent life insurance products to choose from, including whole life, modified premium whole life, survivorship whole life, and universal life, each with its own particular benefits, which can be tailored to suit your particular needs.

Term life insurance may be right for younger people with limited means and few financial responsibilities. It can also serve as a short-term, stopgap means of pure protection. Later, as life changes occur, the term policy can be converted to permanent insurance. When all is taken into consideration, you may find that a combination of permanent and term insurance is best for you.

How Long Do You Need Life Insurance Coverage?

Most would say they need the security of life insurance for their entire lives. Life insurance can help pay off a mortgage, fund a college education, take care of final expenses, offset the loss of the insured's income, and allow a family to continue its standard of living. Both term and permanent insurance can provide those benefits, but which one can do it most efficiently over the course of a lifetime?

With a permanent product such as whole life, premiums are fixed — they can never be increased by the insurer — and your coverage can never be canceled provided premiums are paid when due. With term policies, your premiums are set for a predetermined period (one year, five years, etc.), then increase in subsequent years. With a premium increase at each renewal, the cumulative cost of term over the course of several decades may well bypass that of a comparable whole life plan. In addition, with some term policies, you may be required to submit evidence of continued good health with each renewal. This may put you in danger of being uninsurable when the term coverage is up for renewal.

Do You Prefer Renting or Owning?

The well-known analogy of a term policy as "renting" and a permanent policy as "owning" life insurance is a good way to illustrate their true values. When you rent a house, you receive all the benefits of living in that house. However, when your lease is up, you have built up no equity. Even if you've paid rent for thirty or forty years, when you move out you leave with as much value as you started with — zero. The same is true of a term insurance policy.

Conversely, with a permanent policy, you build guaranteed cash values that you may tap into through loans. In addition, as an owner of permanent insurance, you are eligible for dividends, if and when they are declared by the insurance company. These dividends may be used in a number of ways, including applying them to purchase paid-up additional insurance, which can increase your overall coverage with no additional out-of-pocket expense.

Invest the Difference in What?
Investing wisely is a key factor in determining the success of "buy term and invest the difference." If you choose term insurance, you'll have to decide where to invest your leftover money. Products such as mutual funds and individual stocks and bonds are options. Of course, with these types of assets your return will vary based on market conditions; and when you redeem your shares, they may be worth more or less than you originally paid.

If you are risk averse or very close to retirement, this volatility may not be right for you. Also, capital gains, if any, are taxable when distributed. CDs are a less risky option, but they could have withdrawal restrictions and their return may not be as high as you'd like. With permanent insurance, your policy builds guaranteed cash value that in the long-term could accumulate to a significant sum. These liquid funds accumulate on a tax-deferred basis, and can be conveniently accessed through policy loans that are usually non-taxable. Permanent life insurance has another key tax advantage: the proceeds that flow to beneficiaries are generally free from federal income tax.

Will You Be Able to Invest Regularly?
There's no question that systematic investment of a fixed sum over the long-term can help build your nest egg. "Pay yourself first" is a great strategy, but will you have the means and the discipline to carry this out? Unfortunately, when it comes to planning for the future, good intentions don't always translate into positive actions. Some people are so overwhelmed by the financial burdens of everyday life that they neglect to put money aside for their future.

According to a Harris interactive poll conducted last October, less than a fourth of those buying term insurance actually invested any of the difference in premium. The poll surveyed more than 2,000 adults; close to 600 of them owned term policies. The results showed that only 24% of term policyowners polled actually invested any of their premium savings, and only 10% of term life buyers followed through and invested all of their premium savings. If this happens within a "buy term/invest the difference" framework, the whole strategy collapses. Without the "invest" component, you're left with a term policy that has no capability of accumulating funds for the future. With a permanent policy, you have both the peace of mind provided by the death benefit and a source of contingency funds in the form of guaranteed cash values.

The Choice is Up to You
For some, "buy term and invest the difference" may be a legitimate option. While for others, permanent insurance is the way to go. Your decision is a personal one, based on your family's means, needs, and goals. The insurance and financial decisions you make now are crucial to your family's future. Before leaping into the unknown, do your homework. Read up on the benefits of all of the types of life insurance and financial products you are considering.

Discuss Your Options with an Insurance Professional from an Established Company
You can contact your state's insurance commissioner for information on a company's financial "health," or check your local library for company ratings reports published annually by independent agencies such as A.M. Best. Study product illustrations carefully, and ask questions when necessary. You'll want to fully understand the products that are proposed to you. If you're uncomfortable with a scenario presented to you, get a second opinion: A New York Life agent— professionally trained and experienced— can help you analyze your needs and recommend appropriate solution through insurance and financial products and concepts —at no charge to you.

A New York Life agent— professionally trained and experienced— can help you analyze your needs and recommend appropriate solution through insurance and financial products and concepts —at no charge to you. When you have all the facts, then you can make an intelligent decision on what's best for you and your family.

Note: Dividends are based on the policy's applicable dividend scale or interest crediting rate which is neither guaranteed nor an estimate of future performance.

Consult an Agent!
Simply complete and send the form below and we'll have a New York Life agent in your area contact you at your convenience.