Hi. I would just like to clarify some information about cash value of life insurance policy. My relative and I (separately) got quotes for a whole life insurance for each of us from a known insurance provider here in Colorado. When we compared our quotations, my relative will only pay for 10 years of her policy, while I will be paying the same amount of premium until I am 90 years old. Why is this? Are we scammed? We are of the same age, so now I am really confused.

Thanks!

Dana Lawrence

Boulder CO

Answer:

You should have told your insurance agents to go through the details with you. I am sorry that you are in a state of distress. However, there is a chance that you just misunderstood only the schemes or the mode of payment for your Colorado whole life insurance. I don’t think you got scammed. Just take note of what I will list here below so you can confirm it with your respective agents.

Remember that these insurance agents are trained to assess your needs – the right amount of financial security an individual must be seeking for himself or his family when the time comes like old age or death.

The difference in your quotations, especially the figures concerning the cash value of life insurance policy may be due to the mode or the payment scheme you and your agent picked or determined for you. For your relative, who you said will just pay 10 years for practically the same policy – she may have opted for the payment scheme wherein she can pay a constant amount only for a given time. In this case, she will be paying it straight for 10 years. Here, the cash value is used to offset the payments or premiums by its dividend values. Note that she has a lower cash value when she turns, let us say, 75 compared to what is quoted for you. Yes, you can get your own quote, too.

In your case, where you will be paying your entire life for that same amount, you will see that although you are paying regularly until the age 90, you will notice that the cash value of your life insurance policy actually increases, and the value of your death benefits, as well. So, in effect, what you have is actually a “forced savings” type of insurance. Just like in banking, when you continuously deposit money, its interest will be compounded, yielding a higher amount.

I have never been a fan of shopping online because of security reasons. But knowing this is the most convenient way to get the best deals around, I am keeping my options open; I need to buy a life insurance for me to cover my dependents. Do you have any tips to consider when buying Colorado term life insurance online?

Melissa

Colorado Springs CO

If you are shopping for term life insurance and somehow finding it difficult to make the right choice, you need to consider the following tips so you get the best Colorado term life insurance rates online.

First, you need to ask yourself what you need the life insurance for.  Most people get life insurance because of dependents who might suffer financial loss if they die. If you have loved ones who rely mainly on your income and need protection in case you die, then you should really consider getting one.  You need to find the right type of policy for you. There are two most popular choices around: term life insurance (as the name implies, this provides protection over specified duration of time, has low premiums and is the cheapest way of getting insured); and whole life insurance (permanent life insurance that is designed to protect you for the rest of your days provided you continue to pay your premiums yearly; there is an accumulation of cash value). It is important to get the right type of policy to cater to your needs. After knowing the right type of policy, you must calculate the right amount of coverage. You don’t want to be insured and not getting the right amount to cover for your income, funeral costs, and mortgage and loans debt, if any. Create a list of projected or probable expenses to help you find the right amount for your policy. Lastly, consider the financial strength and reliability of the insurance company you are going to buy the life insurance policy from. What’s the use of your insurance if they cannot back up what they guarantee?

Taking these things into consideration will help buying term life insurance online the best experience for you. Also, don’t forget to compare quotes online so you get the best deals and the perfect policy to suit your needs. All you need to do is fill up an online form, just like what you see above this page. Then just give your basic information to get your quotes. You will receive free quotes from multiple life insurance companies and it will make your decision easier by comparing quotes.

I’m afraid that life insurance that has no physical exam has its catch. What do I need to know about it before I go and buy my life insurance here in Colorado?

Magen

Denver, CO

Even though there are life insurance providers that give life insurance no physical exam, there are exceptions included in the majority of these plans that you need to know. A lot of life insurance no physical exam plans are identified as “Modified Whole Life Insurance.” These life insurance policies are modified in order that you should meet a particular set of conditions for you to be eligible for a complete payment that will be given your beneficiaries when you pass away. Some of the modifications include:

1. Your beneficiaries will get a reduced benefit or nothing at all, in case you die within the first two years or a particular time frame of the life insurance plan being given out.

2. The majority of life insurance no physical exam policies would provide complete coverage for accidental death from the day that the plan is given out. This means that even if you will not be covered in case of a natural death like heart attack, you will be completely covered on case of an accident. However, just like any other life insurance plans, there are exceptions for recreational activities like scuba diving, bungee jumping, etc.

3. This kind of life insurance policy usually costs high, especially for most men.

Although I’ve been wanting to get life insurance here in Longmont Colorado for the longest time, I’m afraid to talk to life insurance agents because I’ve heard so many horror stories about how people get forced into buying a life insurance policy they don’t really need. Can you give me an idea on what I should be watching out for so that I don’t get fooled?

Evelyn

Longmont Colorado CO

Hi Evelyn, it’s sad to hear about people who don’t get the insurance that they need because they’ve talked to someone who simply sweet-talked them into something. I have to say, though, that it goes both ways. You need to have done some research and know what you want before you talk to an insurance agent. You can do this online by typing in your zip code in the form on this page. You can get free quotes from insurers in Longmont Colorado CO, which you can use to get an idea of what you want and how much it should cost, before you set a meeting with an insurance agent. Remember, Evelyn, if someone offers you a deal that seems too good to be true then it probably is.

You also need to be very cautious with the documents that you are asked to read or agree to. First, if you can’t understand what’s written on them, do not hesitate to request clarifications until you are satisfied about what every provision means. It’s precisely their job to help you understand what they’re selling you so you don’t have to feel pressured to make a quick decision. Take your time to find out what is available in Longmont Colorado CO so that you get the best value for your money. Do not be hesitant to ask about instant life insurance which can make life a little bit more convenient for you – you get all the details without even having to actually talk to the insurance agent anymore!

There are a lot of instant life insurance companies here in Denver Colorado CO. I was wondering if you can give me the criteria that I should look for when it comes to selecting the instant life insurance for me.

Francis

Denver, CO

Making sure that the life insurance company is licensed in Denver Colorado CO should be your first priority. Not only is this beneficial to avoid run ins with the law, it is also useful when you need some sort of assistance from the government if there is any conflict that should arise with the life insurance company.

The life insurance company should also be checked for financial solidity. Always keep in your mind that a life insurance is a long term commitment which is why you should be in no doubt that they will be able to assist you when you need the. Ratings can be a very useful basis as well.

It is also important to bear in mind that the real identity of the company should be known to you. This is why you should read about the profile, where it is situated, the comments of other people towards it and most importantly, its history. This is so that you can be sure that they can provide you with the security that you need. To find reliable life insurance providers in Denver Colorado CO, simply type in your zip code on the space provided.

My wife just had our first baby here in Colorado and this got me thinking about our future, but I have no idea what life insurance policies are available! Can you help?

Dean

Fort Collins, CO

Congratulations on the baby! And it is also good to know that you immediately recognized the need for life insurance protection for your small family there in Colorado. Life Insurance is probably one of the most important purchases you will make in your life so it is important that you understand your personal financial goals for yourself and your family, especially in the long-run. That said, it is also vital to have a basic idea of what life insurance options are best suited for you or your family’s need. Below are some of the most common types of life insurance you will come across:

Term Life Insurance
One of the most basic and common forms of life insurance. Provides financial protection to your beneficiaries in case you pass away within the specific coverage period. This also happens to be where you can get the cheapest life insurance quotes and most can be renewed as needed.

Whole Life Insurance
Usually costs more in terms of premiums, especially in the initial years, but gives you a ‘cash-value’ option which is a low -risk form of allowing your money to grow. Premiums become level and more affordable in the later years.

Universal Life
Whole life policy that emphasizes on investing and growing your policy’s Cash-Value through Money Markets.

Variable Life
Similar to Universal Life but premiums are fixed and allows you to borrow against the cash-value of your policy, which can alter the total amount of death benefits remaining on the insurance coverage.

There are many life insurance companies in Colorado CO. I don’t know which one to get life insurance from. I hope you can help me decide.

Jenna

Longmont, CO

Yes, Jenna, there are a multitude of insurance companies everywhere, and this is true for Colorado as well. But while I can give you a few tips on how to screen insurance companies, please always bear in mind that this decision is ultimately yours. If you don’t know where to begin, you can enter your zip code on the space provided on this page to get free quotes from different insurance companies in Colorado CO.

You can start with these companies, by checking their company profile, sort of conducting a character investigation. Among the things that you should look at are their financial records and profitability. Most investors will look at their credit-worthiness and you can adapt this approach as well. If they are publicly-listed, you can check the trend of their stocks, to know whether the investing public has high trust on them or not.

You can also check the company’s mission and vision, and see if this compromises any of your principles. It would be hard to invest in something you don’t totally subscribe to. For example, I hate smoking and therefore I will never invest in a tobacco company.

It would also help if you would know somebody from CO who’s already done business with them. Insurance companies usually offer different insurance products and therefore there might be someone who’s already done a claim with them through another policy. Of course, you wouldn’t want your family to be hassled when they do make a claim so you might as well check their customer service performance. The least thing you want is for the claims process to be a burden.

My husband wants to get our 10-year old daughter a life insurance policy. Is a life insurance policy for a kid necessary?

Sidney

Denver, CO

This is a good question. Unless your 10-year old daughter is the bread-winner of the family, there really isn’t any compelling reason for you (or your husband for that matter) to purchase life insurance coverage on your daughter. The main purpose of life insurance is to replace “lost income” and avoid the dependents/beneficiaries from incurring financial hardship should the insured individual (the breadwinner of the household) suddenly dies.

One valid reason to get life insurance for children is to make sure that they can still get life insurance by the time they turn to adults. Rates will be far cheaper and they are assured coverage even if they develop certain illnesses or conditions that would otherwise make them uninsurable had they not been insured as a child.

In the end it’s still your money and rarely would any life insurer turn away a potential policyholder. However, do prioritize the main income earner first. If you’re budget is tight, reconsider purchasing life insurance for your daughter altogether. You probably can find better ways to invest that money for your child (like on a college education plan). But if you’re husband is headstrong into this, at least do your best to shop around for the best-priced rates. Use life insurance portals like this website to run free rate quotes and be able to compare deals coming from many different life insurers quickly and easily.

Does smoking really have that big of an impact should I decide to get a life insurance policy here in Colorado?

Jake

Lakewood, CO

Yes, smoking habits does have a really big impact in how much you spend for life insurance. Though the actual figures will still depend on the kind of policy you choose and whom you choose it from, and is influenced by factors such as age, health and any pre-existing medical condition, smokers would on average pay more towards life insurance premiums whereas a non-smoker could get the same type of policy, with the same amount of “Face Value” or death benefits for a third or up to a quarter less of the premium rate.

Smoking, as with anything that can cause serious health problems and therefore shorten your lifespan, would be seen by life insurance companies as determining factors and would be reason enough to tag you as a “high-risk” customer. The last thing your life insurance provider there in Colorado would want to do is to pay up the large sum in death benefits due to your untimely death. Hence, the higher premiums charged to you to compensate for that risk. If you still want to have lower rates on your policy, and of course save practically thousands of dollars every year, then it is highly recommended that you speak to your life insurance provider for incentives once you decide to quit cold-turkey. Many insurance companies can actually bring down your rates once you are able to prove that you have not been smoking for at least three years and is living a healthy lifestyle.

I just got a job here in Colorado, should I get a whole life insurance?

Victor

Boulder, CO

That’s a good question, Victor. It’s a wise move to get a whole life insurance especially because this is the type of insurance that gives you coverage for the rest of your life. On the other hand, a term life insurance will only give you a certain period of time. So I think it’s better to choose an option that is more comprehensive than a policy that limits you to just a few years.

With this type of life insurance, you will be able to have a fixed amount for your premiums. Which means you will always pay the same rates for your coverage every year. Whole life insurance also gives your beneficiaries the same benefits as with a term life insurance when you die. Although, there is a greater increase in your cash value with whole life insurance as time goes by. And this accumulated amount can be used, loaned, borrowed or withdrawn when you retire.

Aside from the fact that you are insured for the rest of your (hopefully) long life, people in Colorado are usually drawn to whole life insurance due to the high amounts of cash value that build up over the years. So if you’re planning on getting a life insurance, I suggest that you consider the policy that provides you and your family with benefits when you die and even while you are still alive! Get in touch with your insurance agent in Colorado to know more about whole life insurance and what options are there to suit you!