Endowment Policy Virginia VA
Reader’s Question:
I am just a curious George who wants to know more about endowment policies. What are endowments?
George
Virginia Beach, VA
Endowment policies are whole life insurance contracts designed to give you a hefty amount of money or a lump sum upon maturity. Usually, the maturity of the policy is pegged at 10, 15 or 20 years–meaning, in the 10th, 15th or 20th year anniversary of your policy, you will receive a lump sum, assuming of course, that you are still alive.
A good feature of an endowment policy is that it can be cashed in even if it has not reached its maturity date. When you surrender your endowment policy, you will receive a surrender value, which will be determined by the issuing insurance company. The surrender value will depend on how long the policy has been in force and how much premiums have been paid on to it.
You can also sell your endowment policy to a third party. Once you sell your endowment policy, it will be called a traded endowment or second-hand endowment policy. Once sold, you are naturally transferring beneficial rights of the policy to the new owner. It is now up to the new owner to continue future payments on the policy’s premium.
George, I hope it doesn’t come to the point that you have to sell your endowment policy. Always bear in mind that an endowment policy is best when you are preparing for a source of funds in the future, like a retirement fund or for your children’s college fund. Contact your agent in Virginia, and he’ll give you a quote for the type that will best fit your needs and budget.
Tags: life insurance, life insurance policy, life insurance premium, life insurance quote
Level Term Vs. Yearly Renewable Life Insurance Virginia VA
Reader’s Question:
Would I be better off with a level term life insurance policy or should I go with a yearly renewable policy here in Virginia?
Ingrid
Chesapeake, VA
Very interesting question! And I believe the best way to answer this would be to determine exactly how long you will need to maintain the life insurance policy that you plan to get there in Virginia. If you are looking to get long-term life insurance coverage (more than 20 years) then it would be more practical to go with a level term life insurance policy that also has a guaranteed renewal feature. This would be good for people who are looking into getting insured in their 20’s or 30’s and might be supporting a family or paying long-term financial obligations (student loans, mortgages etc.), and still expect themselves to be relatively healthy by the time the policy period is up, so that they can still pass any pre-requisite medical screening to qualify for low rates if they still want to renew the policy.
For those who only need to get life insurance for five years or less, you may save more money on a yearly renewable term life insurance since rates start-off very low during the initial stages of the policy. You can then just decide to cancel the policy once you no longer need coverage and before the life insurance provider starts raising your premiums. Be careful though since some policies can only grant full death benefits once you have maintained the policy for a certain number of years.
Tags: cheap term life insurance, life insurance policy, life insurance information, advise
Mortgage Protection Life Insurance West Virginia WV
Reader’s Question:
I have a pretty big loan against a house I bought 3 years ago. Is there a type of life insurance that may be used to hedge my home loan to in the event I get disabled or unexpectedly die?
Dwayne
Charleston, WV
Dwayne, what you are looking for is a mortgage protection life insurance. The mortgage protection life insurance will pay off your outstanding housing loan balance in the event you die or get disabled while you are still amortizing your house.
Originally, mortgage protection life insurance is based on your amortization program, the payments for which decreases as the years progress, assuming you are able to pay your home loan regularly. As your loan decreases over time, so does your mortgage life insurance coverage. However, as mortgage life insurance is usually just a special type of term life insurance, your premium payments will do you no good if you happen to outlive your amortization payments on your house.
But don’t get disheartened as there are new mortgage life insurance products now available in the market. What is mentioned above is a traditional type of mortgage protection life insurance. There is now a life insurance coverage that is really becoming popular because all the premiums you have paid will be returned to you. So, Dwayne, when you go shopping around for mortgage life insurance in West Virginia, you should make sure to assert to your life insurance broker that you need an insurance policy that will give your premiums back at the end of the term.