What is Whole Life Insurance?

It is not difficult to understand what is whole life insurance, as the name implies, it is a life insurance policy that provides the insured a lifetime protection; it is a type of permanent life insurance. For example, if you bought this product, you will have to pay a fixed amount of premium for life instead of the increasing premiums of term life insurance.

How long do we need to pay for a whole life insurance?

There are whole life insurance policies designed to mature at the age of 100, this is the age when premiums end and the cash value equals to the face value of the policy, and this cash value will be paid to the insured. Normally this policy doesn’t specified how long is the maturity, the premiums are calculated by the insured’s age, usually starts at the age when he buys until 85 years old, the male and female could be different because the females have a longer life span than the men. The premium is then calculated, and a fixed amount of premium needs to be paid, whether monthly, quarter yearly, half yearly or yearly.

As long as the buyer pays the premiums, he will benefit the guaranteed death benefit. Should he die at old age or young, or should he die of accident or illness the life insurance company will pay a lump sum of money to the beneficiary, this amount of money is depended on how much the buyer wants to be insured, if he wants to have a coverage of $100 thousand, the beneficiary will receive a one lump sum of $100 thousand upon his death.

Whole life insurance provides the buyer with cash value, and the buyer can borrows money from the cash value, or if the buyer wished to stop paying the premium for some time, the cash value will pay the premiums automatically, so that the policy will not lapse. But if the cash value has used up, the buyer needs to start paying the premiums again or else the policy will lapse.

Another benefit for this policy is, the coverage is adjustable, and it can be increased. If the initial coverage is $50 thousand, the coverage after some years could be more than $50 thousand. That is to say the insured now has a coverage of more than the initial $50 thousand without paying more on the previously stated premiums.

Cash value accumulation

Another benefit of whole life insurance is the cash value accumulation. This cash value was built after the buyer paid his premium, this cash value increases each year, and the insurance company will increase the cash value as interest to benefit the policy holder. If the policy holder wants to surrender the policy and get the cash he is entitled to do so, but he will no longer under cover, but normally he is advised not to do so. The buyer has another option that is he can borrow the cash as loan and maintain his policy, so that he is still insured. The cash value taken out is tax-free, and in some countries the premium paid per annum is declarable for tax paying, that is the buyer can reduce his tax payment.

This tax reduction is another benefit for a life insurance buyer.

Disability benefit

The buyer can add an additional premium rider to his policy, should he become disabled, after six months of that disability the life insurance company will pay the premiums for him, for the rest of his life.

Accidental benefit

Another benefit of this is accidental benefit. The buyer can purchases an additional accidental policy, should he become partially or totally disabled, the insurance company will compensate the insured a percentage of payment as specified in the policy. The compensation varies according to individual policies; the buyers are advice to read through thoroughly.

For further definition on this, life insurance companies and the agents are pleased and obliged to assist their customers, for this policy has been in the market for many years. There are some experienced life insurance agents very well versed on this particular policy, perhaps you can ask them to provide you more information on what is whole life insurance.

Everyone Wants Affordable Whole Life Insurance Quotes

Although term life insurance looks cheaper when you request free quotes, a whole life insurance quote can be well worth getting. With whole life you are covered for as long as you live and keep paying the premiums and the cost of the policy is stretched over a longer period of time, so you are actually paying less in monthly premiums.

If you want to have a period of time when you don’t have to pay any premiums, you can ask for your whole life quote to calculate the premiums to a certain age. Most people like to have the premiums spread over 30 years because this is usually their working life. Then they can enjoy retirement knowing that they do have whole life insurance and don’t have to pay any more premiums.

Even though the lowest life insurance rates are for term life, if you get whole life insurance at an early age, the cost will be very similar. There are added benefits to getting whole life too. Once you have your insurance policy in place, it won’t run out at the end of the term leaving you without life insurance.

Even if you can’t afford a high payout, you can choose a lower death benefit and upgrade when you can afford it. This gives you the best life insurance for your whole life at the lowest rates. You should buy what you can afford. The difference between a policy that pays out $100,000 and another that pays $125,000 is very little when it comes to the monthly premium. When you are comparing the quotes choose the highest possible payout for the lowest rates.

You’ll never know how much life insurance you can afford if you don’t look around. With the massive range of online whole life insurance quotes available, life insurance protection for your family is only a click away. You are never under any obligation to buy. You only need to contact an agent when you find the lowest life insurance rates that suit you.

Whole life insurance quotes often return lower premiums. Make sure you do your homework, get a number of quotes and make the right comparisons.

Business Life Insurance Part X - Businesses Corporations and How to Set Up

There are 2 types of corporations:

1. Public corporation:

A public corporation is a legal entity that has a distinct personality for tax and legal status. It generally is started by its original shareholders who provide the start-up cash or assets in exchange for their shares. The corporation may eventually be owned by a large number of shareholders.

The share holders invest in the corporation have certain rights:

a. Voting right.

b. The right to elect directors.

c. The right to receive dividends.

d. The right to buy and sell the corporation stocks.

e. The right to examine the corporation book.

f. The right to share any surplus on the wind-up of the corporation.

The shareholders’ liability is only limited to the total sum of the investment, except in case of fraud and wrong doing.

2. Private corporation:

Operated similar to public corporation except the shares of the corporation are owned by very limited number of shareholders.

How to set up a corporation:

Setting up a corporation requires the application for a Charter or Articles of Incorporation to be filed with the appropriate provincial or federal regulators. If approved a charter is granted. A Charter or Articles of Incorporation is a contract that exists between the legal jurisdiction, the incorporators and their shareholders.

The following information is required to set up a corporation:

a. Name of corporation.

b. Location of its Head Office.

c. Purpose.

d. Authorized capital, classes of shares holding the capital, number of shares of each class and their issue price.

e. Any restrictions to the sale of shares or classes of shares.

f. Description of shares, attributes, designation, preferences, rights and conditions.

g. List of incorporators, including addresses and number of shares held and price paid for shares.

h. List of first directors, including addresses.

i. Any additional information required by law.

To set the company in motion, the Board of Directors must present and choose the corporation by-laws at their first meeting.

All corporations are governed by corporation by-laws which is chosen at the corporation’s first meeting. By-Laws are the code of regulations and instructions for operation, duties and obligation of the corporation and its officers. If you need more information of the above subject, please visit my home page at:

Define Term Life Insurance

We’ve heard these stories of how after the death of a father the family has to move to a different lifestyle they were not used to and the struggles start as they adjusts to a new life without the income of the main breadwinner. There are many things that the family might have to do without, sometimes even getting a roof over their head is a problem.

Many people don’t want to hear the words “life insurance”. Others don’t even want to contemplate a scenario when they are dead.

As an insurance agent there were many times that i found the need to educate my clients on what is term life insurance and why if you have a family you should buy some form of insurance.

But let us imagine for a moment what would befall your family if you were no longer there to bring your income home.

First would they continue to live in their present accommodation?

Where would they get the money to pay your burial and other funeral expenses?

How would your spouse support the family, do they have an income or will it mean they start looking for a job?

If you have young children and have little or no savings then you should seriously look into the possibility of getting a term insurance. This type of insurance is the cheapest available in the market and it provides death benefit to your beneficiaries. The policy is calculated based on your age, and health among other factors and it can be for a term of 1,5,10,20 years depending on what suits your needs.

Term insurance is not recommended for older people as costs go up substantially with age but it is the best solution for young couples or families with young children, mortgages or even high debts. As children grow and are no longer dependents then you can stop the policy.

Who then would need to be covered by this insurance? The first priority is the primary income earner in the home whose income should be protected. The insurance on the other spouse is important too because if they look after the children full time you would need to cover the costs of day care. What about insuring your children? Many people do not think it is wise to insure children as they do not contribute any income to the family kitty.

Taking a term life insurance will give you and your family peace of mind by knowing that your family will be taken care of even if one of the spouses is gone. This might be one of the best financial decisions your family will have made.

Everybody Wants The Best Term Life Insurance Quote

The information you need about the best term life insurance quote is only a click away when you search for term life insurance online. You don’t even have to know anything about the insurance industry to get the best term life quote from an online insurance company.

So many life insurance companies have an online presence that you can shop for anywhere from one year to 30 year life terms. Term life is cheaper than whole life insurance because your family only collects a settlement if you die during the term of the policy. If you are still alive at the end of the term, then you have to start looking all over again for the best term life insurance quote.

There are several ways to look at term life insurance. If you want to have insurance as protection for your family, you can look for the best quote online and then change over later to a whole life that provides 30 year life insurance terms or one that lasts for your whole life. You might also want to look at universal life insurance that covers everything.

In getting a term life policy you need to get the best quote with monthly premiums that suit your budget. Usually term life insurance policies are for 5, 10, or 15 year terms, but it is possible to get 30 year life insurance plans as well. Since the longer term plans are more expensive, you are probably better off with a whole life insurance policy.

You should contact several companies in order to get the best quote, you need to compare the quotes from different companies. This comparison not only involves the bottom line price, but the length of the term, the monthly premiums and the amount of the death benefit each policy offers. Only then can you make an informed decision about the protection you have for your family.

Some companies will give you a policy with no medical exam. It really depends on your answers to various questions about your age, occupation, and health whether or not you get the best term life quote for such as policy. The younger you are, the better quote you get. It pays to shop early.

Looking for best term life insurance quote? Look online. But don’t just get the quote, check out the company.