JIM KAIGHN INSURANCE AGENCYHOME OF THE “INSURANCE DOCTOR” by Jim Kaighn

Life Insurance is the only form of financial contract
which GUARANTEES that there will be a payoff.
It is a very special contract in that the insured person
has money set aside right now for a special purpose later
be it for his family or for business protection. Most forms
of Life Insurance do the same thing in the end: that they
pay the money to whomever the money has been willed
to. It is the only form of insurance that is WHEN insurance.
LIFE INSURANCE, being WHEN insurance is just
sitting there ; waiting to be used, hopefully, a long time
from now. BUT pays off immediately after the contract
goes in force. ( EXCEPT for some TV commercial plans
that make you wait 3 to 4 years before value is there).
Since most Life Insurance policies do the same thing in
the end, there are different thing it can do for the insured
or the owner while the contract is being paid for. This
leads us into the different types of plans available and
what each one can and will not do. Basically, there are
two types.. TERM and PERMANENT, all others are just
forms of these types.
TERM INSURANCE is just renting your coverage for
a certain amount of time; either one year, 10 years, 20
years or 30 years, and NOW LIFETIME TERM!! Like
renting your house, you will most likely never get back
any money when the insurance runs out.. ( UNLESS you
have RETURN OF PREMIUM provision}..You are only
covered for as long as the period of time your policy calls
for. If that person dies one day after that, the contract
is not good. ( There is a company that will cover you
beyond that time}..One of the main advantages of TERM
INS. is the low cost. But, is that an advantage???
The truth is TERM INS. starts off at a low cost, but go
up during the period you are covered for, or it can remain
level for the entire period. Most times when a policy runs
out, folks will have no insurance after that so is TERM
INS. REALLY A GOOD BUY??
TERM INS. is good in its place, and like I recommend,
be bought along with a PERMANENT PLAN.
PERMANENT INS. is more expensive in the beginning,
but in the long run can cost less than term ins.!!
That is because it builds up cash values and dividends
(though not guaranteed), but are mostly always paid by
better companies). DIVIDENDS can be used to increase
insurance, increase cash value, lower premiums. Some
families can not save any money other than using the
accumulate at interest option.
Another type of permanent ins. is called UNIVERSAL
LIFE.. But, like TERM ins.if not properly sold can be
worthless later on.. Many people got burned by BAD
agents back in the 1980’s and 1990’s for unethical practice
and many companies were sued of this.. Universal
Life will be discussed in a later article!!
Next month, PROBLEMS with TERM INSURANCE that
is now just coming to light!! I can be reached at 252-
335-5983 or 252-202-5983
e-mail at “WWW.INSDR@ROADRUNNER.COM..
Check me out on my website at WWW.INSDRJIM.
COM...HAPPY TRAILS