Which Life Insurance Policy is Right For You?

Numerous people avoid getting life insurance. The reasons for this avoidance include the belief that it is not needed at this time, fear about not being able to qualify, and the extra expense associated with coverage.

While most agents will disagree, the truth is that there are times in your life when you probably do not need it. Keep in mind that these times are few, relative to the times when it is important for the financial peace of mind for your family.

The many available choices be confusing. Not all choices are easily understandable by the average person. Don’t worry: The secrets of life insurance can be unraveled. Your life insurance agency can be a great resource. Following is basic information you need to know:

Straight life insurance is also called whole life or permanent. Your premiums are set for life when you purchase the policy as is the death benefit. In general, the younger and healthier you are when you purchase the policy, the lower your premiums for the rest of your life.

As long as you pay the premium, your beneficiary will receive the proceeds when you depart. Straight life policies amass cash values that you can borrow if needed. But this will reduce the amount that will be paid to your heirs, if it is not paid back.

Annuities have two benefits: they have a death benefit and can create a stream of income for you while you are still alive. There are several types of annuities, but there are two basic types; fixed and variable.

A fixed annuity pays a fixed yield and has pre-determined payout to you while still alive depending on the date that you annuitize the policy and how many years the insurance company estimates you will live to collect those payments. You also can elect to pay a fixed payment monthly in exchange for a fixed monthly benefit for a specified period of time.

A variable annuity performs in a similar way, but can potentially pay much better benefits because your premiums are invested in the stock market. You have the potential to earn or lose money just like a regular investment. Your actual monthly payout, should you decide to annuitize depends on your success with your investments. There are also other choices available with annuities, but you should talk with an agent for more explanation and discussion about whether or not this is a good route for you.

Perhaps the most popular is term life which is the easiest to understand and is the most economical. Term life is for a specific term (example 10 years), and will pay to your heirs only if you die during the term of the coverage.

Young families can purchase a high amount of coverage relatively inexpensively to ensure that young children will be cared for in the case of the death of one of the partners. Term life does not build cash value.

Burial insurance is self explanatory. It is meant to pay funeral expenses.

Mortgage life is like a term policy but more expensive. The purpose is to pay off the mortgage in case of the passing of one of the borrowers of the mortgage. The value declines at about the same rate as the mortgage balance declines. Inexpensive term insurance, which retains a consistent life amount through the term of the policy, is a better value.

For more specific information about what type of protection would be best for your situation, it is always recommended that you do your own research, and of course, check with an agent who can answer your questions.

In the San Francisco Bay area, call on Stoneridge Financial for advice and assistance with life insurance and other insurance related investment products. Powered by SEO 2.0 Services

Should You Consider Annuities In This Economy

Are you struggling from month to month. Perhaps you have heard the phrase, more month left at the end of the money. It means simply you have more expenses than you have money to pay them at the end of the month.

Now apply that same thought to your retirement years. You may have a goal to retire at 59 years old. Assuming you are reasonably healthy, you might live to be 75.

Unfortunately, this is a real issue retires or soon to be retirees face each day. However, what if your retirement income runs out before the end of your life?

This is one of many reasons many people to work longer than they has planned and what should be your glory years turn out to be working overtime. Is there a solution?

With todays economy and the constant threat of inflation, how do you know when enough is enough? The simple solution would be to retire with enough money so it would not be a concern.

Many people have begin to consider immediate annuities to protect your assets and provide a steady income for your retirement years. What is an Immediate Annuity?

You pay a one-time premium and receive payouts based on a pre-determined interest rate and your own life expectancy. The basic definition is a contract between you and an insurance company that guarantees a rate of return for your investment.

Essentially the larger your payment the larger your monthly income. You cannot outlive the benefits of your payout and your payout is guaranteed.

The most obvious factor for most people is obtaining the highest interest rate available, but there are other important factors to consider.

Other tax deferred for example variable annuities are backed by stock market investments. Conversely fixed annuities are issued by and secured by the insurance company where the purchase is made.

Researching the various insurance companies and their credit ratings can help you make a wise selection when shopping for an immediate annuity. The priority in you selection should be the credit worthiness of the company itself.

There are a number of retirement instruments to choose from. Ultimately, financial decisions, should be made by the individuals investing the money.

There are more than enough agents promoting retirement products. Fixed annuities provide security and stability in a time when the economy is uncertain at best. Research annuities and you will be able to make an informed decision based on your own evaluations. Investing in annuities just might work for you

Security and stability make fixed annuities a wise choice. Investing for retirement offers many options. Todays economy makes the decisions very difficult. If you are looking for stability and guaranteed income, consider immediate annuities.

To learn more about Best Annuity Rates visit Investing In Annuities for more articles and information.