Types of Life Insurance

There are different types of life insurance available to financially protect your family in case of death of you, your spouse or your child. Insurance policies can range from just covering funeral costs to replacing the salary that would have been earned if the insured had not died. Some of the types of life insurance are term life insurance and permanent life insurance. This kind of financial protection keeps people in their homes, food on the table, children in college and many other financial burdens at bay when a loved one has died.

What is Term Life Insurance?

Term life insurance is an insurance policy that covers a specific period of time. When the policy ends, the insured would need to renew his or her policy. Having a life insurance policy for only one year is possible with term life insurance. The premiums for a term life insurance policy are typically more affordable than a permanent life insurance policy. Unlike a permanent life insurance policy, with term life insurance your policy will not have any cash value.

What are the Options With Term Life Insurance?

You can purchase a policy for a term of one year. At the end of that year, you would need to purchase another policy. Each year, as you get older, your premium will go up or you may become uninsurable. For these reasons, there are two options for term life insurance that you may want to consider. The first is called an annual renewable term life insurance policy, this policy will guarantee that you can renew your policy for a set number of years such as 10 or 20 years. The second is guaranteed level premium term life insurance. Your premium will remain at a set price for a period of between 10 and 30 years. These two policies will carry a higher annual premium from the beginning to off-set the fact that by the end of the set term you may be paying a lower premium annually than you would if you had just purchased a one year term life insurance policy year after year.

How do I get a Term Life Insurance Policy?

Contact an insurance agency or your insurance agent to get a quote on premiums for term life insurance. Some of the factors that will determine your rate are age, health, whether you smoke, and the amount you would like the policy to pay out. Check with other companies also, if you feel the rate is too high.

Take care of your loved ones by providing financial security for them with term life insurance.

Finding a Good Term Life Insurance Quote

If you have been looking at term life insurance lately, then you know that there are many different types of term life insurance. You know that getting a good term life insurance quote, is determined by what you want in your insurance policy and how long you plan on being covered for. First let’s define what “term” is. “Term” means that there is a specific time period in which you will be covered. When that time frame ends so does the coverage, and you get no value for the money you have put into the policy.

There are many different types of term life insurance policies and you need to know this when you talk to a company and ask for a term life insurance quote. There are policies that only cover you for a five year period, while others can cover you for as long as 30 years. You should also realize that the longer coverage is going to cost more. There are different quantities that the coverage covers, and this depends on the amount you choose.

How Do Insurance Companies Factor Price of Their Insurance Quotes?

The cold hard truth is that insurance companies work off of statistics and probabilities. The longer you live and the older you are, the higher your probabilities are of dying sooner. So, if you are a certain age, an insurance company may only offer term coverage for a small number of years, say 5. If they do offer longer policies your insurance quote is likely to be much higher. On the other hand if you are in your 20´s, the probabilities of you living another 30 years are higher, so an insurance company is more likely to offer you a longer time frame in a policy, at a smaller price.

Getting the Right Term Life Insurance Quote

There are ways you can get a better deal on your insurance quote. First you should get quotes from more than one agent. You can also look online for a good quote, but try for sites that give you an instant quote. Otherwise you will have a ton of agents calling you every day.

When you get an instant quote you get information from several reliable insurance agencies, and you can make an instant decision as to the best type of insurance for you.

Make sure you pay attention to monthly payments, and to the term the policy is for. You want to really think about the type of coverage you need too. Be sure you get enough term life coverage to help your family and cover their needs, if something should ever happen to you.

Types of Life Insurance

There are several types of life insurance policies available to the public. Choosing the right one for you and your loved ones should be based on your own specific needs.

Whole Life Insurance

Whole life insurance is a type of insurance that covers your entire life. Your premium will remain level and your benefits or coverage will decrease over time, with age, as your risk of dying becomes greater. The benefits are similar to term life insurance except that it covers the entirety of your life.

Universal Life Insurance

Universal life insurance in a policy that allows you to cash in on your own life insurance. You have the ability to pay more than the premium to create a cash value that you can borrow against. If the cash value is not touched, it will most likely go to the beneficiary upon death of the policy holder. Generally the investment is restricted to bonds and mortgages.

Variable Life Insurance

Variable life insurance is almost identical to universal life insurance, except that you have more options when it comes to choosing your investment vehicle. For example, with a variable life insurance policy, you have the ability to use stock funds as an investment product.

Term Life Insurance

Term life insurance is a personal life insurance that covers a specified period of time. In the event that you do not need to use your insurance, your premium would not be paid back to you. It is mainly geared toward younger adults who take out a term life insurance policy to cover expenses like funeral, mortgage, and loss of salary of the policy holder in the event of their death. There are different terms that you can pick but they usually don't last any more than 20 years. Term life insurance policies are not renewable. Most policies contain a suicide clause which terminates the policy if you take your own life within approximately three years of beginning the policy. When it comes to term life insurance, as you age, your coverage decreases. For a 70 year old that has had a 20 year, million dollar life insurance policy, their premiums will stay the same, month to month, but by the time they reach the age of 70, their policy may only be worth 500,000. There are many term life insurance plans that offer no medical exam. Term life insurance has many benefits as it is the most flexible when it comes to your previous health than most other types of insurance policies.

Finding a Good Term Life Insurance Quote

If you have been looking at term life insurance lately, then you know that there are many different types of term life insurance. You know that getting a good term life insurance quote, is determined by what you want in your insurance policy and how long you plan on being covered for. First let’s define what “term” is. “Term” means that there is a specific time period in which you will be covered. When that time frame ends so does the coverage, and you get no value for the money you have put into the policy.

There are many different types of term life insurance policies and you need to know this when you talk to a company and ask for a term life insurance quote. There are policies that only cover you for a five year period, while others can cover you for as long as 30 years. You should also realize that the longer coverage is going to cost more. There are different quantities that the coverage covers, and this depends on the amount you choose.

How Do Insurance Companies Factor Price of Their Insurance Quotes?
The cold hard truth is that insurance companies work off of statistics and probabilities. The longer you live and the older you are, the higher your probabilities are of dying sooner. So, if you are a certain age, an insurance company may only offer term coverage for a small number of years, say 5. If they do offer longer policies your insurance quote is likely to be much higher. On the other hand if you are in your 20´s, the probabilities of you living another 30 years are higher, so an insurance company is more likely to offer you a longer time frame in a policy, at a smaller price.

Getting the Right Term Life Insurance Quote
There are ways you can get a better deal on your insurance quote. First you should get quotes from more than one agent. You can also look online for a good quote, but try for sites that give you an instant quote. Otherwise you will have a ton of agents calling you every day.

When you get an instant quote you get information from several reliable insurance agencies, and you can make an instant decision as to the best type of insurance for you.

Make sure you pay attention to monthly payments, and to the term the policy is for. You want to really think about the type of coverage you need too. Be sure you get enough coverage to help your family and cover their needs, if something should ever happen to you.

The Term Life Insurance Quote Process

Once you are married and have children your top priority becomes that of protecting your family. You want to make sure they are never left wanting. You want to be sure that they can cover living and educational expenses should anything happen to you, or should you pass away. One of the best ways of doing that is by getting term life insurance. But how do you find the right term life insurance quote?

Actually getting a good term life insurance quote is not all that difficult, you don’t even have to know too much about the insurance world to get a decent policy. Most of the time you can find a good term life insurance quote right online, from an insurance company that has an online presence.

Term life insurance is much cheaper than whole life insurance because of the type of insurance policy it is. Your family can only collect if you should pass away within the time frame which you have the term life insurance policy in place.

If you have no life insurance, and your company doesn’t help pay for it, then term life is a great option. You can even start out with term life and then change it over to a whole life insurance policy with most reputable insurance companies.

The term life insurance quote you get will depend on the type of policy you get. It will depend on the number of years you want the policy for, and on the amount of payout you want from the policy. It will also depend on your current age. The older you are when you get term life insurance coverage, the more expensive the policy will be.

For instance, a 30 year term life insurance policy for 1 million will be more expensive than a 5 year policy for the same amount. And a policy that covers you for $50,000 for ten years will be less expensive than a policy for $100,000.

Before getting a Term life insurance quote, you should first decide on how long you want to be insured for. Do you want a 5 year coverage, 10 year, or 30 year? Remember the older you are when your coverage runs out, the harder it will be for you to get another term life insurance policy.

Then you should decide on the amount of coverage you need. You need to replace your income, but you also need to cover costs like educational costs, etc.

Have all of these questions settled in your mind before you go looking for quotes. Then you can go online and search for term life insurance quotes. You will see that several companies appear in your search.

You will have to fill in the requested personal information to get a true quote. But you can get quotes from several companies online, then compare what they offer with their price. Be sure you get quotes from reliable, long standing companies. You don’t want to purchase a policy, pay it diligently, only to find that the company goes bankrupt somewhere down the line.

This is all there is to finding a great term life insurance quote. It takes a little diligence, some reading and time to figure out what you want, but the process is pretty simple, and can be done from the comfort of your home.

Types of Life Insurance Pt 6

Sorting through coverage information to decide which type of life insurance policy is best for you can be confusing. You want to find the best life insurance at the most affordable rate, but calculating the return of premium on a short versus long term insurance plan is best done with the help of a qualified agent.

The Difference Between Whole and Term Life Insurance

Whole life insurance policies, as the name implies, are purchased to cover your whole life, while Term life insurance is purchased for a specified period. Term life insurance , sometimes called death protection only life insurance, can be purchased in increments from one to 30 years, and upon death of the policy holder, pays the face value of the policy.

While term life insurance premiums are low for the stated period, the cost of renewing at the end of the term may be substantially higher. The premiums of whole life insurance, on the other hand, are the same throughout the life of the policy.

Insurance companies offer several types of whole life insurance and vary in the way they invest the premiums . Some allow you to pay above the minimum and let the policy holder choose the way it’s invested.

Determine the Amount of Whole or Term Life Insurance Benefit Needed

There are several factors to consider when trying to determine the amount of life insurance to purchase, including, but not limited to:
* Funeral expenses
* Debt pay off amount
* Amount needed for college funds
* Amount needed for survivors living expenses
* Mortgage payoff
* Value of current assets

The length of time it will take for your survivors to be self supporting must also be taken into consideration before you finalize the life insurance policy.


Convertible Term Life Insurance

If you only feel you need a large amount of insurance until your children are grown, through college, or until the mortgage is paid off, a term life policy for that amount of time may be a part of your complete financial plan.

Some term life insurance policies allow a conversion feature. Seek the advice of insurance agents to see if the possibility exists to obtain less expensive term insurance for now, and if financial or family circumstances may change in the future, change part or all to a permanent plan. Check to make sure the company allows the change with no medical exam.This also applies to term life policies.