Online Life Insurance and Term Life Insurance

The old concepts of life insurance no longer work. The idea that we cannot divide the protection components from the accumulation components of a permanent life insurance policy is no longer valid. We must replace it with a new theory that says all life insurance is term insurance. You pay for life insurance each year whether you make the payment directly or have the payment taken from the earnings on your investment account.

Term Life Insurance

The menu of life insurance products is a matrix that was developed for the executive financial services coordinators (financial planners) of Price Waterhouse in 1985. The objective of the menu is to take all the generic forms of life insurance contracts and describe them based on their major characteristics and applications. The menu is presented here as an aid to understanding the life insurance marketplace. It will help you to evaluate the advantages and disadvantages of the various policies and select the one(s) appropriate for you.

While the objective here is to evaluate the merits of investing in various life insurance contracts, in doing so it is essential to recognize that the investment results of any contract are uniquely diminished by charges for mortality (life insurance cost) and expenses. Therefore, you must understand the alternatives.