Typically consumers take out life insurance in order to protect themselves from events that may possibly occur, such as illness, car accidents, fire and other things. The likelihood of such things happening is one of the factors that is considered in order to set rates. However, life insurance is very different.
Life insurance differs because you are not insuring against something you expect to never happen. You know you will die, it is just a matter of when. This makes pricing life insurance more difficult than other types of insurance. Life insurance is much more a financial product than a true insurance product. Such things can lead to confusion and make it easy for people to be fooled more often.
Purchasing life insurance allows you to solidify the financial future of those you love and your legacy can be composed of it. The benefits from life insurance can cover funeral costs, college funds, mortgages or more.
Below are some definitions from the world of life insurance:
- Life Insurance Premiums: This is the amount of money you pay an in order to have life insurance.
- Life Insurance Convertibility: This is what makes a policy able to convert from one type to another.
- Life Insurance Face Value: This is the original amount of the benefit on a policy.
- Life Insurance Cash Value: This is the saving part of a policy that can be cashed in or borrowed from.
- Paid Up Life Insurance : This is a type of policy that has no outstanding premiums due.
- Life Insurance Beneficiary: The person who will receive benefits from a life insurance policy.
Life Insurance Options
There are 6 different types of life insurance options.
- Term life insurance: This type of coverage is often referred to as temporary and is the easiest to get and the least expensive. It covers the individual for a set number of years for a premium that is stable.
- Declining Balance Term: This is a different form of term insurance that is commonly matched with mortgages. The benefit decreases over the life of the term, which is typically equal to the length of the mortgage. When the mortgage is paid off, the policy is useless and will expire. It has no cash value.
- Whole Life: This policy gives you permanent life insurance with savings built in. If you continue to pay your coverage at the locked in rate, you will be accruing cash value.
- Universal Life: This is similar to whole life but you can also earn on the savings associated with your policy. Premiums and face values are more flexible than other types of coverage and can be altered as needed. Cash values can be accessed.
- Variable Life: This type has fixed premiums and gives the holder more control over the cash value of the policy. This cash value is invested therefore it and the death benefits associated with the plan can vary. Taxes are deferred on capital gains and other earnings if the money remains in the insurance policy.
- Universal Variable Life: This is an aggressive policy that is invested in mutual funds. No guarantees are made other than the original face value death benefit.
Understand the different types of life insurance so that you can be sure you are getting the right life insurance policy for your needs before you buy.
Instant Life Insurance Quotes
Multiple websites exist that offer complimentary term life insurance quotes to consumers who are looking to buy coverage. However, few of them actually explain term life insurance coverage and the different options available. It is important to understand the basics of this important insurance product and to know what option to choose in order to best protect you and your family.
There are variations on the rules and regulations concerning life insurance coverage from one state to another. Therefore if you are getting an online quote, make sure that it is from a reputable insurer that actually is licensed to sell coverage in your state. The agent you deal with should be familiar with the particularities of where you live. In addition, it is wise to learn about the guidelines of your state in regards to life insurance.
Comparing Term Life Insurance Coverage
When you decide to use a free online quote tool to help you search for the right life insurance tool, you will be surprised by how easy it is. It is critical to shop around for a variety of prices, because every company has slightly different guidelines for setting rates. Therefore you need to get as many quotes as possible and compare them to get the best deal.
In addition, it is important for you to feel totally confident in the choices you make concerning life insurance. When you know you have opted for the right insurer you will feel that way. Talk with several agents until you find the right one for you.
Different Life Insurance Plans
There are a variety of life insurance products available. It is important to know which one is the right one for you. Agents can help you make such choices as they have more education than the average person when it comes to life insurance. Your agent will teach you a great deal. By using an online quote tool, you can quickly and easily access the right agent for you.
When you are ready to get a life insurance quote, it is as simple as accessing an online quote tool. You start by giving your zip code and in no time you will be on your way to getting multiple quotes from companies serving the area you live in. The presentation of the results even makes it easy to compare and contrast the options available to find the best coverage possible.
Get started today with a free online life insurance quote to help you get started finding the best coverage possible.