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Published by on Saturday, August 29, 2009 at 7:57:00 PM

How to Make Your Children Millionaires Using Life Insurance

How to Make Your Children Millionaires Using Life InsuranceBy Amani Gaillard : While many may view life insurance as "death" insurance as it becomes payable upon the death of the insured to their heirs, it obviously has many more positive advantages, otherwise why would people in the US pay over $165 billion per year for life insurance according to industry statistics.

Many people use life insurance as a form of a savings plan that carries the additional benefit of paying a large lump sum cash payment to your heirs. This benefit can be in millions of dollars. If you are healthy and preferably young, you can obtain and affordable coverage in large amounts that will pay out those large premiums upon you death to your children. Some policies even carry "double indemnity" and" triple indemnity" provisions which double or triple the face value of the life insurance policy.

Lets take a brief look at some life insurance information with regards to term vs whole life insurance.

"Term life insurance" provides coverage for the insured for a set time period in return for a specified payment called a "premium". If the insured person dies within the term period the insurance company pays the death benefit to the insured persons name recipient or beneficiary. If the term period on the insurance policy expires while the insured person is still alive the policy cancels and no benefit is paid. Also there is rarely a cash value associated with term insurance, so the insured receives no refund.

Whole life insurance is different than term life insurance. Whole life insurance provides coverage and cash value for the life of the policy holder. Whole life insurance tends to be more expensive than term life policies. The most common types are universal life, whole variable life insurance with universal becoming more popular.

Term life insurance is typically cheaper and easy to purchase without as many qualifications required by the insured. Term life can be more affordable. Term life policies tend to cost less than other policies. However, term life policies expire after the "term" ends and the policy premiums may increase with age.

On the other hand, whole life insurance policies accumulate cash value with interest which can be tax deferred. Also a permanent life policy gives that peace of mind that upon your death your loved ones won't be burdened with financial your debts in terms of financial problems.

However, whole in life insurance the insurance company determines the return on your cash value investment, which may be higher in other arenas.

Above all keep in mind the possible great benefits to your children if you can affordable a sizable whole life insurance policy in their names.

Protect yourself and your family! You can compare online insurance quotes here for life insurance easily on the Millennium Systems website.

A. Gaillard for

Millennium Systems, Inc

MillenniumSystems, Inc.

Article Source:

Consultant for HDFC Standard Life Insurance Co. Ltd.
Published by IzajAhmed Shaikh.
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I am, Mr. IzajAhmed Shaikh, a Computer Professional and a Pro. Blogger, who belongs to Shahabad, Karnataka India. My basic Qualifications are B.Sc., and M.C.M. done from University of Pune., formerly known as, Poona University,. I like to write articles based on my personal experiences.