Friday, May 8, 2015

7 Ways to Go From a Boss to a Leader

7 Ways to Go From a Boss to a Leader

Image credit: Apple | Enhanced by Entrepreneur

Many people view the terms “boss” and “leader” as interchangeable -- but they are vastly different. To determine which one you are, I encourage you to honestly answer this question: Do you: a) see your team members as an aggravating necessity that you have to put up with in order to accomplish day-to-day activities and achieve goals? Or, do you: b) truly enjoy working with people on your team to meet your goals and deliverables?

If you chose a), you’re probably more of a boss; if you chose b), you’re probably more of a leader.

Based on my work with teams over the past 25 years -- and, of course, common sense -- I can confidently say that the teams which produce the most effective and long-lasting results are the ones directed by leaders, not bosses. So, how do you move from “boss” to “leader”? Here are seven key ways: 

1. Love people.

No one can lead a team well unless he or she truly enjoys working with people. People are not minions; they are individuals with unique personalities, traits and talents. As a leader, you must enjoy helping people and watching them succeed. 

2. Guide, don’t control, your team.

Bosses feel the need to control every action; they’re micromanagers. Leaders know that their team will accomplish great things if they receive direction and support rather than control, so they establish frameworks and structure, then empower their teams to get the work done, providing support along the way.

3. Be adaptable.

Bosses tend to be very rigid in the way they want things done, but leaders understand that they must adapt their personal style to their team members’ needs. They understand and value each team member’s individuality, establish expectations clearly and adapt their leadership approach as necessary.

4. Delegate.

Bosses may feel they are delegators, but because they don’t trust anyone else to do the job as well as they can, they never fully delegate anything. Leaders truly delegate. They assign tasks, and then let go (though they still follow up periodically to ensure their team members are on track to achieve the desired results).

5. Give credit, accept blame.

Bosses love to take credit for their teams' successful results -- and they’re the first to throw them under the bus when those goals are not achieved as desired. Leaders, in contrast, know their success comes from their teams' efforts, so they keep their egos in check: They showcase their teams' efforts when they succeed, and they accept personal responsibility when they fail. 

6. Practice risk acceptance.

Bosses avoid risks at all costs because they are fearful that going out on a limb might produce a perceived failure -- they like to play it safe. But leaders know that the greatest successes come from taking risks. Leaders enable and encourage their teams to try new things, and they see every so-called mistake or failure as an opportunity to make improvements. 

7. Motivate.

Bosses motivate through fear. Leaders, in contrast, motivate by figuring out what sparks their individual team members to perform at their highest potential, and by expecting greatness from their teams even when those individuals don't see greatness in themselves. Leaders also cheer and celebrate successes, small and large, because they know they are their teams' biggest fans.   

Going from “boss” to “leader” is a challenging personal development experience -- but it’s extremely rewarding, too! If you act like a leader, your team members will produce long-lasting effective results, and their performance will be consistently outstanding. They will be more engaged at work, and more fulfilled in their personal lives, too. In that way, developing from boss to leader is an act of kindness and service to your fellow human beings -- and to yourself, as well. Become a leader, and you’ll find that your life will be less stressful, and exponentially more fulfilling.

Monday, February 9, 2015

Naming Life Insurance Beneficiaries: 10 Ways to Screw Up

Naming who should get the life insurance money after you die sounds simple, but designating beneficiaries can get tricky.

Mistakes are common, financial advisers say -- and they can be heartbreaking and expensive.
When mistakes are made "you're not creating problems for you," says Keith Friedman, principal of FBO Strategies, an estate planning and insurance firm in Stamford, Conn. "You're creating problems for the people you leave behind."
Here are 10 life insurance beneficiary mistakes to avoid.
1. Naming a minor child
Life insurance companies won't pay the proceeds directly to minors. If you haven't created a trust or made any legal arrangements for someone to manage the money, the court will appoint a guardian, a costly process, to handle the proceeds until the child reaches 18 or 21, depending on the state.
Instead, you can leave the money for the child's benefit to a reliable adult; set up a trust to benefit the child and name the trust as the beneficiary of the policy; or name an adult custodian for the life insurance proceeds under the Uniform Transfers to Minor Act. Consult an estate attorney to decide the best course.
2. Making a dependent ineligible for government benefits
Naming a lifelong dependent, such as a child with special needs, as beneficiary puts the loved one at risk for losing eligibility for government assistance. Anyone who receives a gift or inheritance of more than $2,000 is disqualified for Supplemental Security Income and Medicaid, under federal law.
Work with an attorney to set up a special needs trust, and name the trust as beneficiary. A trustee you appoint will manage the money for the dependent's benefit.
Here's more on life insurance planning for parents of children with special needs.
3. Falling into a tax trap
Life insurance death benefits are generally tax-free -- except when three different people play the roles of policy owner, the insured and the beneficiary. In that case, the death benefit could count as a taxable gift to the beneficiary, says Amy Rose Herrick, a Chartered Financial Consultant and life insurance agent with offices in the U.S. Virgin Islands and Tecumseh, Kan.
Say, for instance, a wife owns a life insurance policy on her husband's life and names their adult daughter as beneficiary. The wife effectively is creating a gift of the policy proceeds to her daughter, Herrick says. The person who makes the gift -- the wife -- is the one who would be subject to the tax, if the amount of the gift exceeds federal limits.
The problem could be avoided in most cases by having the husband own the policy, insuring himself. However the situation can get tricky in community-property states. Consult a financial adviser to decide the best way to structure the policy.
4. Assuming your will trumps the policy
A life insurance policy is a contract. Regardless of what your will says, the life insurance money will be paid to the beneficiary listed on the policy. That's why it's important to contact your insurer to change your beneficiary if needed.
See more information on wills vs. life insurance policies: Who's the boss?
5. Forgetting to update
"Designating beneficiaries are not 'set it and forget it' events," says Tara Reynolds, vice president at MassMutual. You should review your policy every three years and after major life events, such as marriage, having children or divorce. Change the beneficiaries when circumstances change.
Unfortunately, many people forget to do so.
"Half of my practice is second or third marriages," says Peter Blatt, a tax attorney and financial adviser in Palm Beach Gardens, Fla. "It's not uncommon to find the ex-spouse still listed as beneficiary on the life insurance policy" when reviewing a client's portfolio.
life insurance
10 ways to screw up life insurance

6. Neglecting details
Beneficiaries: 
By branch or by person?
You want to leave life insurance money to your kids and grandkids, and you want it divided evenly.
But how?
There are two ways of distributing the money -- per stirpes and per capita. You can specify either method on the life insurance policy, and both are acceptable options when naming beneficiaries, says Ed Graves, a professor of insurance for The American College in Bryn Mawr, Pa. "But the possible outcomes can be drastically different from one approach to the other."
Per stirpes means the proceeds are divided by branch of the family, and per capita means they are divided by head.
Say, for instance, you want to leave the money to your two children, Bob and Sue, or to your grandchildren if Bob or Sue predeceases you. Bob has three children and Sue has one child. Now suppose Bob dies before you do.
Under per stirpes, half the money would go to Bob's three children, and half would go to Sue. Under per capita, the money would be divided equally among Bob's three children and Sue; each would get 25 percent.
Choose the distribution method to match your intentions. Graves recommends you diagram the possible scenarios.
"Complex situations should probably have an attorney involved," he adds.
Be specific when you name beneficiaries. Instead of "my children," list their names, Social Security numbers and addresses, says Ed Graves, a professor of insurance at The American College in Bryn Mawr, Pa.
Otherwise, "the insurance company has to launch a search and that can take a lot of time," Graves says.
When naming multiple beneficiaries, decide whether you want the money divided "per stirpes," which means by branch of the family, or per capita, which means by head. (See sidebar.)
7. Staying mum
"The most important thing is to tell someone so they know you have a life insurancepolicy, where it is and how to find it," says Joshua Hazelwood, vice president at MassMutual.
Open communication with beneficiaries now can save a family from chaos later - or even worse, never claiming the benefit.
8. Giving money with no strings attached
Naming your young-adult children as beneficiaries without setting any conditions for how the money is dispersed can be a setup for financial failure. How many 18- or 21-year-olds can handle a huge influx of cash? One way is to set up a trust with specifics for how the money can be released and what it can be used for until the young adult reaches a certain age.
"It allows me as a parent to instill what I feel is valued in my absence," Friedman says. "I don't want to leave my children with millions of dollars when they're 18 with unfettered access."
Insurers are beginning to introduce policies that let you arrange for the death benefit to be paid out in installments. Minnesota Life Insurance Co.'s new indexed universal life product, Omega Builder IUL, includes that option, calling it an "income protection agreement."
9. Naming only a primary beneficiary
"Most people just think they're going to make their spouse beneficiary, but don't take into account the spouse might predecease them," Friedman says. "It's conceivable that something would happen to you and your spouse together."
Blatt says he even sees cases where people fail to name any beneficiaries. When there is no living beneficiary, the life insurance benefit typically goes into the estate and is subject to probate. That leads to two complications. One, heirs might face a long wait to get the money. Two, the life insurance proceeds, which normally would be protected from creditors, now can be used to pay off creditors.
Advisers recommend naming secondary and final beneficiaries. If the primary beneficiary dies before you do, then the money passes to the secondary beneficiary. If the secondary beneficiary has passed away when you die, then the death benefit goes to the final beneficiary.

Monday, January 12, 2015

Tips for Identifying an Ideal Insurance Company Vietnam




Choosing the best insurance company Vietnam is a challenge that most people have often been faced with. One of the reasons for this is because of the variety of insurance agencies in the region. Besides, each one of these insurance agencies claims to offer the best services such that a variety of people are often spoilt for choices. As a result of this, several people have been faced with a series of problems like losses among others. In case you are planning to acquire services of an insurance agency in Vietnam, below are some of the tips that you should rely on in order to make the best choices.

Make sure that the agency is licensed

When obtaining an insurance policy from any agency, it is important that you check whether it has been authorized to conduct business in the area. Always ensure that the insurance company is licensed to offer services in Vietnam in order to avoid problems when it comes to the time of collection the policy and also insolvency. Contact the insurance department in Vietnam in order to verify the licensing of the agency. However, you can also ask for proof of license from the agency.

Check the financial stability of the insurance agency

Before you go ahead to acquire an insurance policy from any company in Vietnam, it is also advisable that you check the financial stability of the company. This is because; a company that is financially stable is the best one that will be able to offer you ideal solutions whenever you are in need of compensation. You can determine the financial stability of a given insurance company; it is advisable that you ask for the rating of the company. However, you can also visit the websites of different insurance companies in Vietnam in order to get information regarding their ratings. In order to get an ideal one, it is advisable that you make comparisons from a couple of insurance agencies in the region.

Get to know the price structure

Whenever you are in need of acquiring an insurance policy from any of the insurance agencies in Vietnam, it is also very important that you get to know about the structure in which they do their pricing. This will enable you to have a better understanding on why they price their products the way they do. Since you will be spending money on obtaining coverage, the aspect of cost is very important. In order to get the best price structure that you can easily afford, it is advisable that you compare what other insurance company also offer. Based on the coverage that you need, you should always ensure that you choose an insurance agency that can offer you that at the best rates that you can pay for without any problems.
All these procedures may not be quite easy especially making comparisons from a variety of insurance agencies in Vietnam. In order to ensure that the task is not so overwhelming as it seems, it is advisable that you do your research online.

Sunday, January 11, 2015

Life Insurance Information for People With Diabetes



life insurance

Once a person is diagnosed with diabetes, life insurancepolicies sold can become unaffordable or unavailable. This is because life insurance policies are allowed by state and federal law to "rate" or charge a premium based upon an applicant's health status. In addition, a plan can choose to not provide a policy based upon an applicant's health status.
Even so, it is possible for many people with diabetes to find affordable life insurancepolicies within the United States. You just have to know where to look. Certain insurers, or carriers, specialize in selling policies to people with chronic health conditions like diabetes.
To find the best life insurance policy for you, please consider the following:

  • A major factor in the cost of insurance policies for people with type 1 or type 2 diabetes is how well they manage their diabetes. If you have a lower A1C, good blood glucose control, lead a healthy lifestyle, and do not have complications from diabetes, chances are your rate will be more reasonable too.
  • Find an insurance agent that is experienced in obtaining policies for individuals with "impaired risk" -- they will know what carriers may offer you a policy and which one(s) may not.
  • Apply for a policy with a insurers that uses "clinical underwriting" -- a process that looks at your total health, not just what health conditions you may have.
  • Shop around -- on the internet, by phone, or through referrals from family and friends. Becoming your own advocate will help you to find a life insurance policy that best fits your needs.
  • Never take NO for an answer. Just because one company rates or declines your application does not mean that another company will not look at you more favorably.

Saturday, January 10, 2015

What Is Life Insurance?

life insurance policy is a contract with an insurance company. In exchange for premiums (payments), the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries in the event of the insured's death.
Typically, life insurance is chosen based on the needs and goals of the owner. Term life insurance generally provides protection for a set period of time, while permanent insurance, such as whole and universal life, provides lifetime coverage. It's important to note that death benefits from all types of life insurance are generally income tax-free.
There are many varieties of life insurance. Some of the more common types are discussed below.

Term life insurance

Term life insurance is designed to provide financial protection for a specific period of time, such as 10 or 20 years. Typically, premiums are level and guaranteed for that time. After that period, policies may offer continued coverage, usually at a substantially higher premium rate. Term life insurance is generally a less costly option than permanent life insurance.
Needs it helps meet: Term life insurance proceeds are most often used to replace lost potential income during working years. This can provide a general safety net for your beneficiaries and can also help ensure the family's financial goals will still be met—goals like paying off a mortgage, keeping a business running, and paying for college.
It's important to note that, although term life can be used to replace lost potential income, life insurance benefits are paid at one time in a lump sum, not in regular payments like paychecks.
life insurance
life insurance

Universal life insurance

Universal life insurance is another type of permanent life insurance designed to provide lifetime coverage. Unlike whole life insurance, universal life insurance policies are flexible and may allow you to raise or lower your premium or coverage amounts throughout your lifetime. Like whole life insurance, universal life also has a tax-deferred savings component, which may build wealth over time. Additionally, due to its lifetime coverage, universal life typically has higher premiums than term.
Needs it helps meet: Universal life insurance is most often used as a flexible estate planning strategy to help preserve wealth to be transferred to beneficiaries. Another common use is long term income replacement, where the need extends beyond working years. Some universal life insurance product designs focus on providing both death benefit coverage and building cash value while others focus on providing guaranteed death benefit coverage.

Whole life insurance

Whole life insurance is a type of permanent life insurance designed to provide lifetime coverage. Because of the lifetime coverage period, whole life usually has higher premiums than term life. Policy premiums are typically fixed, and, unlike term, whole life has a cash value, which functions as a savings component and may accumulate tax-deferred over time.
Fidelity does not currently offer whole life insurance.
Needs it helps meet: In addition to providing lifetime coverage, whole life is commonly used to accumulate tax-deferred savings. Whole life can also be used as an estate planning tool to help preserve the wealth you plan to transfer to your beneficiaries.

Thursday, January 8, 2015

Naming Life Insurance Beneficiaries: 10 Ways to Screw Up


Naming who should get the life insurance money after you die sounds simple, but designating beneficiaries can get tricky.
Mistakes are common, financial advisers say -- and they can be heartbreaking and expensive.
When mistakes are made "you're not creating problems for you," says Keith Friedman, principal of FBO Strategies, an estate planning and insurance firm in Stamford, Conn. "You're creating problems for the people you leave behind."
Here are 10 life insurance beneficiary mistakes to avoid.
1. Naming a minor child
Life insurance companies won't pay the proceeds directly to minors. If you haven't created a trust or made any legal arrangements for someone to manage the money, the court will appoint a guardian, a costly process, to handle the proceeds until the child reaches 18 or 21, depending on the state.
Instead, you can leave the money for the child's benefit to a reliable adult; set up a trust to benefit the child and name the trust as the beneficiary of the policy; or name an adult custodian for the life insurance proceeds under the Uniform Transfers to Minor Act. Consult an estate attorney to decide the best course.
2. Making a dependent ineligible for government benefits
Naming a lifelong dependent, such as a child with special needs, as beneficiary puts the loved one at risk for losing eligibility for government assistance. Anyone who receives a gift or inheritance of more than $2,000 is disqualified for Supplemental Security Income and Medicaid, under federal law.
Work with an attorney to set up a special needs trust, and name the trust as beneficiary. A trustee you appoint will manage the money for the dependent's benefit.
Here's more on life insurance planning for parents of children with special needs.
3. Falling into a tax trap
Life insurance death benefits are generally tax-free -- except when three different people play the roles of policy owner, the insured and the beneficiary. In that case, the death benefit could count as a taxable gift to the beneficiary, says Amy Rose Herrick, a Chartered Financial Consultant and life insurance agent with offices in the U.S. Virgin Islands and Tecumseh, Kan.
Say, for instance, a wife owns a life insurance policy on her husband's life and names their adult daughter as beneficiary. The wife effectively is creating a gift of the policy proceeds to her daughter, Herrick says. The person who makes the gift -- the wife -- is the one who would be subject to the tax, if the amount of the gift exceeds federal limits.
The problem could be avoided in most cases by having the husband own the policy, insuring himself. However the situation can get tricky in community-property states. Consult a financial adviser to decide the best way to structure the policy.
4. Assuming your will trumps the policy
A life insurance policy is a contract. Regardless of what your will says, the life insurance money will be paid to the beneficiary listed on the policy. That's why it's important to contact your insurer to change your beneficiary if needed.
See more information on wills vs. life insurance policies: Who's the boss?
5. Forgetting to update
"Designating beneficiaries are not 'set it and forget it' events," says Tara Reynolds, vice president at MassMutual. You should review your policy every three years and after major life events, such as marriage, having children or divorce. Change the beneficiaries when circumstances change.
Unfortunately, many people forget to do so.
"Half of my practice is second or third marriages," says Peter Blatt, a tax attorney and financial adviser in Palm Beach Gardens, Fla. "It's not uncommon to find the ex-spouse still listed as beneficiary on the life insurance policy" when reviewing a client's portfolio.
life insurance
10 ways to screw up life insurance

6. Neglecting details
Beneficiaries: 
By branch or by person?
You want to leave life insurance money to your kids and grandkids, and you want it divided evenly.
But how?
There are two ways of distributing the money -- per stirpes and per capita. You can specify either method on the life insurance policy, and both are acceptable options when naming beneficiaries, says Ed Graves, a professor of insurance for The American College in Bryn Mawr, Pa. "But the possible outcomes can be drastically different from one approach to the other."
Per stirpes means the proceeds are divided by branch of the family, and per capita means they are divided by head.
Say, for instance, you want to leave the money to your two children, Bob and Sue, or to your grandchildren if Bob or Sue predeceases you. Bob has three children and Sue has one child. Now suppose Bob dies before you do.
Under per stirpes, half the money would go to Bob's three children, and half would go to Sue. Under per capita, the money would be divided equally among Bob's three children and Sue; each would get 25 percent.
Choose the distribution method to match your intentions. Graves recommends you diagram the possible scenarios.
"Complex situations should probably have an attorney involved," he adds.
Be specific when you name beneficiaries. Instead of "my children," list their names, Social Security numbers and addresses, says Ed Graves, a professor of insurance at The American College in Bryn Mawr, Pa.
Otherwise, "the insurance company has to launch a search and that can take a lot of time," Graves says.
When naming multiple beneficiaries, decide whether you want the money divided "per stirpes," which means by branch of the family, or per capita, which means by head. (See sidebar.)
7. Staying mum
"The most important thing is to tell someone so they know you have a life insurancepolicy, where it is and how to find it," says Joshua Hazelwood, vice president at MassMutual.
Open communication with beneficiaries now can save a family from chaos later - or even worse, never claiming the benefit.
8. Giving money with no strings attached
Naming your young-adult children as beneficiaries without setting any conditions for how the money is dispersed can be a setup for financial failure. How many 18- or 21-year-olds can handle a huge influx of cash? One way is to set up a trust with specifics for how the money can be released and what it can be used for until the young adult reaches a certain age.
"It allows me as a parent to instill what I feel is valued in my absence," Friedman says. "I don't want to leave my children with millions of dollars when they're 18 with unfettered access."
Insurers are beginning to introduce policies that let you arrange for the death benefit to be paid out in installments. Minnesota Life Insurance Co.'s new indexed universal life product, Omega Builder IUL, includes that option, calling it an "income protection agreement."
9. Naming only a primary beneficiary
"Most people just think they're going to make their spouse beneficiary, but don't take into account the spouse might predecease them," Friedman says. "It's conceivable that something would happen to you and your spouse together."
Blatt says he even sees cases where people fail to name any beneficiaries. When there is no living beneficiary, the life insurance benefit typically goes into the estate and is subject to probate. That leads to two complications. One, heirs might face a long wait to get the money. Two, the life insurance proceeds, which normally would be protected from creditors, now can be used to pay off creditors.
Advisers recommend naming secondary and final beneficiaries. If the primary beneficiary dies before you do, then the money passes to the secondary beneficiary. If the secondary beneficiary has passed away when you die, then the death benefit goes to the final beneficiary.

Life insurance basics

Life insurance is an agreement between you (the policy owner) and an insurer. Under the terms of a life insurance policy, the insurer promises to pay a certain sum to a person you choose (your beneficiary) upon your death, in exchange for your premium payments. Proper life insurance coverage should provide you with peace of mind, since you know that those you care about will be financially protected after you die.

The many uses of life insurance

One of the most common reasons for buying life insurance is to replace the loss of income that would occur in the event of your death. When you die and your paychecks stop, your family may be left with limited resources. Proceeds from a life insurance policy make cash available to support your family almost immediately upon your death. Life insurance is also commonly used to pay any debts that you may leave behind. Life insurance can be used to pay off mortgages, car loans, and credit card debts, leaving other remaining assets intact for your family. Life insurance proceeds can also be used to pay for final expenses and estate taxes. Finally, life insurance can create an estate for your heirs.

How much life insurance do you need?

Your life insurance needs will depend on a number of factors, including whether you're married, the size of your family, the nature of your financial obligations, your career stage, and your goals. For example, when you're young, you may not have a great need for life insurance. However, as you take on more responsibilities and your family grows, your need for life insurance increases.
There are plenty of tools to help you determine how much coverage you should have. Your best resource may be a financial professional. At the most basic level, the amount of life insurance coverage that you need corresponds directly to your answers to these questions:

·        What immediate financial expenses (e.g., debt repayment, funeral expenses) would your family face upon your death?
·        How much of your salary is devoted to current expenses and future needs?
·        How long would your dependents need support if you were to die tomorrow?
·        How much money would you want to leave for special situations upon your death, such as funding your children's education, gifts to charities, or an inheritance for your children?
Since your needs will change over time, you'll need to continually re-evaluate your need for coverage.

How much life insurance can you afford?

How do you balance the cost of insurance coverage with the amount of coverage that your family needs? Just as several variables determine the amount of coverage that you need, many factors determine the cost of coverage. The type of policy that you choose, the amount of coverage, your age, and your health all play a part. The amount of coverage you can afford is tied to your current and expected future financial situation, as well. A financial professional or insurance agent can be invaluable in helping you select the right insurance plan.

What's in a life insurance contract?

A life insurance contract is made up of legal provisions, your application (which identifies who you are and your medical declarations), and a policy specifications page that describes the policy you have selected, including any options and riders that you have purchased in return for an additional premium.
Provisions describe the conditions, rights, and obligations of the parties to the contract (e.g., the grace period for payment of premiums, suicide and incontestability clauses).
The policy specifications page describes the amount to be paid upon your death and the amount of premiums required to keep the policy in effect. Also stated are any riders and options added to the standard policy. Some riders include the waiver of premium rider, which allows you to skip premium payments during periods of disability; the guaranteed insurability rider, which permits you to raise the amount of your insurance without a further medical exam; and accidental death benefits.
The insurer may add an endorsement to the policy at the time of issue to amend a provision of the standard contract.

Types of life insurance policies

The two basic types of life insurance are term life and permanent (cash value) life. Term policies provide life insurance protection for a specific period of time. If you die during the coverage period, your beneficiary receives the policy death benefit. If you live to the end of the term, the policy simply terminates, unless it automatically renews for a new period. Term policies are available for periods of 1 to 30 years or more and may, in some cases, be renewed until you reach age 95. Premium payments may be increasing, as with annually renewable 1-year (period) term, or level (equal) for up to 30-year term periods.
Permanent insurance policies provide protection for your entire life, provided you pay the premium to keep the policy in force. Premium payments are greater than necessary to provide the life insurance benefit in the early years of the policy, so that a reserve can be accumulated to make up the shortfall in premiums necessary to provide the insurance in the later years. Should the policyowner discontinue the policy, this reserve, known as the cash value, is returned to the policyowner. Permanent life insurance can be further broken down into the following basic categories:
·        Whole life: You generally make level (equal) premium payments for life. The death benefit and cash value are predetermined and guaranteed. The policyowner's only action after purchase of the policy is to pay the fixed premium.
·        Universal life: You may pay premiums at any time, in any amount (subject to certain limits), as long as policy expenses and the cost of insurance coverage are met. The amount of insurance coverage can be decreased, and the cash value will grow at a declared interest rate, which may vary over time.
·        Variable life: As with whole life, you pay a level premium for life. However, the death benefit and cash value fluctuate depending on the performance of investments in what are known as subaccounts. A subaccount is a pool of investor funds professionally managed to pursue a stated investment objective. The policyowner selects the subaccounts in which the cash value should be invested.
·        Universal variable life: A combination of universal and variable life. You may pay premiums at any time, in any amount (subject to limits), as long as policy expenses and the cost of insurance coverage are met. The amount of insurance coverage can be decreased, and the cash value goes up or down based on the performance of investments in the subaccounts.

Choosing and changing your beneficiaries

You must name a primary beneficiary to receive the proceeds of your insurance policy. Your beneficiary may be a person, corporation, or other legal entity. You may name multiple beneficiaries and specify what percentage of the net death benefit each is to receive. If you name your minor child as a beneficiary, be sure to designate an adult as the child's guardian in your will.
Generally, you can change your beneficiary at any time. Changing your beneficiary usually requires nothing more than signing a new designation form and sending it to your insurance company. If you have named someone as an irrevocable (permanent) beneficiary, however, you will need that person's permission to adjust any of the policy's provisions.

Where can you buy life insurance?

You can often get insurance coverage from your employer (i.e., through a group life insurance plan offered by your employer) or through an association to which you belong (which may also offer group life insurance). You can also buy insurance through a licensed life insurance agent or broker, or directly from an insurance company.
Any policy that you buy is only as good as the company that issues it, so investigate the company offering you the insurance. Ratings services, such as A. M. Best, Moody's, and Standard & Poor's, evaluate an insurer's financial strength. The company offering you coverage should provide you with this information.