NJ Life Insurance Term vs. Permanent

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Choosing a life insurance product is an important decision, but it can be complicated. As with any major purchase, it is important that you understand your family's needs and the options open to you for NJ Life Insurance Quotes

 Life insurance is the foundation of a sound financial plan. It provides financial security for your family by protecting your financial resources, such as your present and future income, against the uncertainties of life.

Choosing the Amount Simply stated, you should elect an amount of life insurance that is determined necessary to meet the needs you are trying to satisfy. To be over insured can negatively affect your budget and long range financial goals almost to the degree that being underinsured can. While each person must individually assess their responsibilities, life situation and comfort for risk, it is important to be careful to choose an amount of life insurance that reflects your specific circumstances without underinsuring or over insuring.

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How much Life Insurance do you need?

Well, the answer isn't really how much life insurance you need it's how much investment capital your family will need at the time of your death. Their need for capital on a gross basis is really a function of two variables:

(1). How much will be needed at death to meet immediate obligations; and

(2). How much future income is needed to sustain the household.
The first category is fairly easy to estimate. It's the sum of final expenses (including uncovered medical costs, funeral expenses and final estate-settlement costs) and other lump-sum obligations (such as outstanding debts, mortgage balance, and college costs).
The second variable is a bit trickier. It involves calculating the "present value" of future needed cash-flow streams. By meeting with a Professional Agent in person you can get a rough sense of the needs for capital that might exist at your death.


A financial analysis of your needs depends upon the answers you provide. Please answer all questions your agent will need to ask to help you. If you do not understand a question, tell them to "slow Down" or speak regular English, and we'll explain what we're driving at.


A Professional NJ Life Insurance Agent will provide a rough sense of your potential life insurance needs. To the extent that you or your beneficiaries are eligible for Social Security benefits, if this arm of the federal government which has been mismanaged by corrupt politicians with the ability to legally steal our future benefits and change the retirement age to cover their tracks is still around, those benefits (unless you want them included) are usually not included in this analysis. Social Security benefits, if available, will somewhat reduce the need for life insurance. For a more accurate and detailed analysis, contact a professional life insurance agent.

NJ Life insurance helps to ensure that your family and loved ones are protected against financial difficulties in the event of a premature death. Combined with investments, retirement and estate planning, life insurance is a fundamental part of a sound financial plan. With the help of a NJ life insurance professional agent you can develop a complete plan that will protect you and your family. This Web Page will give you basic information about various types of life insurance, how to choose a professional NJ agent, conducting a needs analysis, and the basics of estate planning.

More specifically, life insurance provides cash to your family after your death. This cash (the death benefit) replaces the income you would have provided and can meet many important financial needs: It can help pay the mortgage, run the household, send your kids to college, and ensure that your dependents are not burdened with debt. The proceeds from a life insurance policy could mean that your family won't have to sell assets to pay outstanding bills or taxes. What's more, there is no federal income tax on life insurance benefits (in most cases).

 While there's no substitute for evaluating your specific situation, one rule of thumb is to buy life insurance equivalent to five to ten times your annual gross income. To determine how much, if any, life insurance you need, start by gathering all your personal financial information and estimating what your family will need after you're gone. Include ongoing expenses (such as day care, tuition, or retirement) and immediate expenses at the time of death (like medical bills, burial costs, and estate taxes). Your family also may need funds to help them readjust: perhaps to finance a move, or pay expenses while job hunting. The best way to evaluate your specific needs is to contact a life insurance professional.

NJ Term Life Insurance provides protection for a specific period of time. It pays a benefit only if you die during the term. Some term insurance policies can be renewed when you reach the end of the term, which can be from one to 30 years. The premium rates increase at each renewal date. Many policies require that you present evidence of insurability at renewal to qualify for the lowest rates.
Keep in mind that the cost of term insurance increases as you get older, which may make it more expensive than cash value insurance in the long run. Today’s term policies usually have two sets of premiums -guaranteed maximum premiums and current premiums. Current premiums are usually much lower, but they can be changed by the insurance company. The insurance company cannot increase the current premium above the guaranteed maximum premiums shown in the policy. When you buy term insurance, you need to make a choice as to how long you want the Life Insurance protection. You may renew the policy without a physical examination for the period of years specified in the Life Insurance policy. Some term insurance can be converted to cash value insurance up to a specified age with no physical examination. Premiums for the converted insurance will most likely be higher than the premiums you would be paying for the term insurance.

NJ Permanent or NJ Whole Life Insurance provides lifelong protection. Click hereto get a free life insurance quote. As long as you pay the premiums, the death benefit will be paid. These policies are designed and priced for you to keep over a long period of time. If you don't intend to keep the policy for the long term, this may be the wrong type of insurance for you.

Permanent policies are known by a variety of names: whole, ordinary, universal, adjustable, and variable life. Most have a feature known as cash value or cash-surrender value. This feature, not found in most term insurance policies, provides you with some options: " You can cancel or surrender the policy in total or in part and receive the cash value as a lump sum.
If you need to stop paying premiums, you can use the cash value to continue your current insurance protection for a specified time or to provide a lesser amount of protection covering you for your lifetime.
You usually can borrow from the insurance company, using the cash value in your life insurance as collateral. Unlike loans from most financial institutions, the loan is not dependent on credit checks or other restrictions. You ultimately must repay any loan with interest or your beneficiaries will receive a reduced death benefit. With all types of permanent policies, the cash value of a policy is different from the policy's face amount. The face amount is the money that will be paid at death or policy maturity. Cash value is the amount available if you surrender a policy before its maturity or your death. Moreover, the cash value may be affected by your insurance company's financial results or experience, which can be influenced by mortality rates, expenses, and investment earnings.

There are several types of permanent insurance: Whole life or ordinary life is the most common type of permanent insurance. The premiums generally remain constant over the life of the policy and must be paid periodically in the amount indicated in the policy.

Most people apply for life insurance through a NJ State licensed agent, who may represent one or more companies. If you use an NJ Insurance agent, choose carefully. Agents earn a commission on your business which usually is around 70 percent of the first year premium ($600.00 x 70% =$420.00). Purchasing online life insurance may be cheaper due to the fact that little or no commission is paid to an agent. They should assess your needs, answer your insurance questions, and help you establish your goals. They should advise you and help you update your insurance. If you are wondering how much it would cost you for insurance get a free quote here. If you are considering the purchase of a variable policy, the agent must have an insurance license and a registration with the National Association of Securities Dealers, as variable products usually involve securities.


Finding a Good Policy
Guarantees
When shopping for a life insurance policy, you determine the guarantees on premiums, death benefits, expenses, cash value, mortality changes, and cost of insurance. It is critical to get all promised guarantees in writing.

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