Save Up to 90% on Life Insurance Today!
We
all know the benefits of having a life insurance policy. It provides financial
cushion for the family should there be untimely death in the family. It is very
important to provide for financial needs ahead of time so those left behind can
not only survive, but thrive. That’s the main purpose and job of life
insurance. By giving family members ample financial resources, they get time to
adjust to their new living situations. Think about your family. If you’re
tempted to delay purchasing life insurance because money is tight, just think
how financially stressed your family would be without you and your income.
When
shopping for life insurance, other than getting the best price possible,
credibility of the insurance company is just as important. That’s why we have
partnered with only A+ rated life insurance companies. This means that when you
get life insurance quotes from us, you can be rest assured that whichever
policy you choose, you will get the best coverage and benefit you need – when
you need it. To get started, simply enter your zip code above and fill out our
2 minute form to save up to 90% on your life insurance policy today.
Life Insurance Types
Basically
there are two main types of life insurance people should consider; Term and
permanent life insurance. Within permanent life insurance, there is whole life
insurance, variable life insurance, universal life, and universal variable life
insurance.
Term
life insurance as the name states is an insurance policy that exists for a
certain period. Most policy terms range from 5 years to 30 years. As long as
you pay the premium on a timely manner, the death benefit and premium remains
the same over the stated policy period. At the end of the term of the life
insurance policy, either the policy ceases to exist or the premiums that you
have to pay rises considerably more.
Since term policies do not last a lifetime of the insured, they are much
more affordable than comparable permanent policies. However, in the event that
the insured person does not die during the term covered, no death benefit will
be paid out and there is no return of premiums paid into the policy. Term life
insurance policies lock in the amount of premiums so that we know exactly how
much our premiums we need to pay. It can be paid monthly, quarterly,
biannually, or yearly.
Permanent
life insurance is similar to term in the sense that death benefit and the
premiums remain the same. The main difference here is that there is no stated
term and the insurance protection remains for the life time of the insured so
long as there is no lapse in the premium payments. One key feature of permanent
life insurance that is not found in the term insurance policies is that it has
cash value feature. As premiums are paid by the insured, a portion of the
proceeds is used to pay the cost of the insurance and the remainder is
deposited into a cash account. Money in this fund will earn interest and build
over time. For these two main additional benefits, whole life policies tend to
be priced significantly higher. In a permanent life insurance policy, should
you decide to discontinue paying the premiums, you get back whatever cash value
that has been accumulated in your policy.
In a
variable life insurance, death benefit changes according to the return of the
cash value accumulated. The premiums that you pay are invested by the life
insurance companies into various investments and the death benefit changes in
relation to the return of these investments.
Universal
life is an insurance policy that is flexible in the sense that both the premium
and the face amount can be adjusted over the life on the insurance policy.
Universal
variable life allows for investment of the cash value in traditional
securities; stocks, money markets, index funds and bonds. The earnings within
the policy are tax deferred. Premiums are flexible and cash value may be
withdrawn or borrowed.
So
which of the above policies should you buy? Well, it depends on your needs. Buy
term insurance to cover your needs that have a shorter life span and buy
permanent insurance to cover needs that are not expected to go away.
For
instance, our children will leave home at some point and we will no longer need
to financially provide for them. So the need to replace our income and support
our children is better covered by term life insurance policy.
On
the other hand, gifts to family or charity and final expenses don’t have end
dates while we are living, so these needs should be covered with a permanent
life insurance policy.
At
autoinsurancequotescomparison.website, we know that shopping for affordable
life insurance can be confusing. With all of the different coverages and
policies available, it is important to get as much information as possible
before you purchase a life insurance policy for yourself, your family or your
company. This is why we provide a variety of informative content that is
designed to make your life insurance decision as easy as possible. Don’t waste
valuable time worrying about your family’s future. Do something about it. One
of the main reasons why many people who don’t have life insurance coverage for
themselves is because they simply don’t know how affordable the life insurance
coverage has become. A recent study by LIMRA, a global research and consulting
group that tracks the life insurance industry, found that consumers on average
overestimate the cost of term life insurance by almost three times. For
instance, the average cost of a $250,000 level-premium term life policy for a
healthy 30-year-old is about $150 a year. However, most consumers on average
estimated the cost of such a policy to be more than $400. What’s even more
interesting is that people in the 20-40 year age group overestimated the
premium by almost seven times the actual cost.