Reader’s Question:

This 36-year-old native of Oklahoma wants to know if riders are attachable to a term life insurance. If yes, what riders can you recommend to me?

Arthur

Norman, OK

Arthur, based on your question, I can sense that you have already made up your mind on buying a term life insurance and want to load it up with riders. By the time you have read my reply, I’m sure a lot of life insurance agents have assisted hundreds or thousands of Americans who wants not only term life insurance but added life insurance riders, as well.

Arthur, most, if not all, types of life insurance policies are offshoots of term-life insurance. Also, a lot of companies now are offering special policies with life insurance riders built in to them, be they be term-life or whole-life policies. Usually, a lot of people attach an Accidental Death and Dismemberment Insurance Rider. This rider will double your death benefits if you die due to an accident, and it pays out a lump sum if any part of your body gets removed. Waiver of Premium is also popular among insurance buyers. The WOP will allow you to stop paying further premiums in case you get incapacitated or die unexpectedly. Another popular one is Return of Premiums. All premiums paid will be returned, should you attach this rider.

Arthur, there are really so many riders to choose from. There is also a Dread Disease Rider, Unemployment Rider, Child Sickness Rider and many more. Arthur, hope you give your agent in Oklahoma a call soon for a detailed explanation.

Reader’s Question:

I’m thinking of either getting an increasing or decreasing term life insurance in Oklahoma. Could you tell me how these two differ from each other?

Lorie

Lawton, OK

Increasing term life insurance is also called yearly renewable term policy or annual renewable term. The face amount of this policy, which is also called death benefits, remains level or does not increase over time as long as you continue paying your premiums. Upon the death of the policyholder, the face amount or death benefit is paid to the beneficiary in a form of monthly income or in one lump sum. The reason why it is called increasing term life insurance is because its premium increases every year. The life insurance company is charging the premiums according to the life expectancy of the policy holder for a particular year.
Decreasing term life insurance has a level life insurance premium this means that the life insurance premium does not increase. The death benefits on the other hand decreases over the period of the policy in a uniform amount. The death benefit decreases in the same manner as the mortgage balance decreases. This policy is also called a basic mortgage protection life insurance.

Reader’s Question:

I didn’t believe in lotteries until I won in Oklahoma . It’s just a few thousand dollars but still, that’s money, and at least I know now that lotteries are authentic. I’d like to invest this in some type of insurance, but I’m still at a toss between annuity and life insurance. What would you recommend?

Kylie

Edmond, OK

Wow, a real lottery winner, in the flesh! That’s one of my dreams, too, you know, to win the lottery. It’s such a cliché and I’ve never really known anyone who’s won anything in the lottery, except for that character in one of Mary Higgins Clark’s books. So I’m pleased to meet you, Kylie the lottery winner from Edmond Oklahoma OK. You are not only lucky but also smart to directly save your money in something. Some people run the misfortune of having unexpected amount of money, only to behave like one-day (or maybe one-week) millionaires. They end up listing the many they should and shouldn’t have done. I am very glad that this is not the case with you and you may consider a future in investment banking.

To help you on your very nice dilemma, let us diagnose the purposes of the two insurance types and then evaluate what you need more. Annuity and life insurance are similar in a sense that both will require you to pay your premiums, and both will give your money back after some time, plus interest. Who receives the benefits (or the payouts) is what spells the difference between the two. Life insurance is primarily for the beneficiary named by the policy holder, and therefore benefits are aimed at them. Benefits are called death benefits, which will be handed out to the beneficiary in the event of the policy holder’s death. Now annuity is primarily for the policy holder. The benefits, in this case called the payout, will directly go to the policy holder at a time agreed by the two of you and your Edmond Oklahoma OK insurer. You will still be asked to name a beneficiary, who will receive the amount due you in the case of an early death. Of course, you can still give the money to your siblings or spend it all again on lottery. The payout is yours and yours alone and you can do with it as you please.

To aide you further, we have provided a very user-friendly tool on this page which gives free quotes for different types of insurance. You can try getting some as it can probably give you some insights about the subjects.

It is a toss, Kylie, between leaving the money behind after you leave this world, or getting it in your senior years to pamper your children with. But hey, you are a lottery winner so go find your luck!

Reader’s Question:

I am thinking of taking out a life insurance policy in Lawton Oklahoma  for myself. I wanted to know if there are any benefits of having a universal life insurance as to whole life insurance.

Thank you.

Mary

Lawton, OK

Well, Mary, if you are young and planning for the future but are reluctant to spend money on life insurance in Lawton because you believe you have nothing to show for it, go for a universal life insurance.

A universal life policy is definitely recommendable if you want permanent, lifetime coverage. The premiums do not increase if you renew your policy or reapply for a term insurance. A universal life insurance can help pay off debts and your mortgage. A term life insurance policy can also do that but the flexible premium payments and adjustable death benefits are not characteristics of a term life insurance policy.

A term life insurance policy does, however, provide death protection for a specific length of time and also gives the largest immediate death benefit for your money. Some policies are convertible to whole or universal even if you are not in good health.

Universal Life insurance does not offer as many guarantees as whole life does but it can be more cost-effective. All in all, it depends on your needs and your financial situation. It is not an easy decision to make as it affects your entire family not just for the present but for many years to come.

If you need to choose the best priced life insurance in Oklahoma you can shop online. It is always wise to compare rates first before you buy anything. Choose wisely!