Affordable Life Insurance Quote

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Types Of Life Insurance Available

Life insurance is considered an important cornerstone in any personal or family’s financial planning. For most families and individuals, life insurance is an extremely important way to safeguard their family in case of an accidental death. Individuals that take out life insurance policies have added peace of mine that if death occurs - their family will be financially secure. There are a few different types of life insurance products on the market; the most popular are Term Life, Whole Life (sometimes called Permanent) and variations of the two.

Term Life

Term life insurance is an insurance product that covers you for a specific term (time period). You usually pay the same rate over the life of the term and you are guaranteed a benefit of a specific amount in the case of death. Most term life insurance policies are from one year to thirty years. There are two types of term life; level term and decreasing term. The vast majority of consumers choose level term. Level term has the same cost from year to year, decreasing term means that the death benefit decreases from year to year or other schedule. There is also renewable term life insurance. With renewable term life, you can renew your life insurance once the term is up, even if you would normally not be able to qualify for term life due to health problems.

Whole Life/ Permanent

Whole life insurance pays a death benefit, whether you die in one year or at the age of 90. The benefit always stays the same and with most policies the payments also always stay the same. Some whole life insurance policies have an added feature that you can withdraw a cash value of the policy after a specific amount of time. For instance, a person that no longer needs to care for a family with a whole life policy can withdraw a cash value of the policy in order to live more comfortably.

Universal Life Insurance

This type of life insurance gives you more options than whole life. For instance, you can increase the benefit and you can withdraw money from the policy if it has a cash value.

Variable Life

Similar to Universal Life Insurance, however you usually get a savings account that earns interest. You can also invest money that is in your savings account via stocks, bonds and other monetary instruments..

By: Connie Barker -

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Tags: Affordable Life Insurance Quote, cash value, death benefit, Life Insurance Quote Comparison, renewable term life insurance, Term Life, Universal Life Insurance, Vari, whole life, Whole Life/ Permanent

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The Primary Types of Life Insurance & How Their Cost is Determined

There are many forms of life insurance policies available to a potential policyholder but all life insurance policies will always fall under two different categories:

Term Life Insurance - these types of policies are only active for a specified amount of time of your life, called a "term". When the term ends, so does the policy. Life Insurance Quotes are the best way to explore term life insurance in detail. Furthermore, payout only occurs should the insured die sometime within the policies defined term. This type of life insurance is best used for temporary or shorter term needs: 20-year mortgage, college education costs for children, and helping to support children and assist with family income needs should one of the parents die.

Permanent Life Insurance - this type of policy covers you for your entire life and will pay death benefits when you eventually die. This type of insurance policy is best for "permanent" related needs: burial fees, estate taxes, providing income for a spouse, etc.

Whichever type of insurance policy you choose, there are two factors that determine its cost: Mortality Cost and Policy Expense Cost.

Policy Expense Cost is the cost of insurance company expenses such as office rent, utilities, general staff, and agent commissions. Depending on the type of policy you purchase, this fee can either remain constant or fluctuate throughout your policy’s lifespan.

Mortality Cost is determined by the odds of the insured dying at that particular moment. Obviously, the odds of the insured dying increase exponentially with age. To avoid an ever increasing insurance premium that correlates directly with the insured’s aging, insurance companies average the increase and adjust the early premium payments accordingly. Essentially, you are paying an inflated premium when the insured is younger and a much lower premium as the insured individual ages, but the actual payment remains constant. This overpayment is called "cash value" and must be reimbursed to the policyholder should he or she cancel an existing permanent life insurance policy early. It is important to note that Term Insurance premiums increase with the policy holder’s age but they will never accrue a "cash value". When a Term Insurance policy is terminated early, there is no refund for overpayment due from the insurer.

Additional life insurance terms you should know:

Beneficiary - This is the person or organization to whom the insurer will pay proceeds to should the insured die. This could be your husband/wife, or your spouse. It could also be your children or a perhaps your favorite charity.

Primary Beneficiary - This is the person or organization that will be paid upon the insurer’s death.

Contingent Beneficiary - This is the person or organization to which the proceeds will be paid to should the Primary Beneficiary be dead or no longer exist (such as a company or corporation named as the Primary Beneficiary). If no Contingent Beneficiary was named in the policy, proceeds will be paid to the Primary Beneficiary’s estate.

Face Amount - This is the amount of money payable at time of death. It is usually found on the first page of every Life Insurance policy, whether it’s a Term or Permanent policy.

Purchase Options - These are options that can be purchased throughout the life of the policy regardless of the insured’s health. A good example of a purchase option is allowing the policyholder to increase the amount of the policy without having to re-evaluate the health of the insured.

Waiver of Premium - This is an optional coverage that permanently suspends your premium in the event that you are disabled. However, you must first be disabled for six months before the waiver takes effect. Additionally, this option is quite expensive and may not be necessary should the insured have substantial disability coverage.

 By Christian Rios

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Tags: Affordable Life Insurance Quote, Life Insurance Quote Comparison, Life Insurance Quotes, permanent life insurance, primary types of life insurance, term life insurance

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Life Insurance Quote Information Term Vs Whole

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

TERM LIFE INSURANCE

Term life insurance provides coverage for the insured for a set time period in return for a specified premium. If the insured person dies within the term period the insurance company pays off the death benifit to the insured person’s benificiary. If the term period on the insurance policy expires while the insured person is still alive the policy cancels and no death benifit is paid.

PERMANENT LIFE INSURANCE

Permanent life insurance is and can be a little bit more complex than term life insurance. Permanent life insurance provides coverage and cash value for the life of the policy holder. Perm or whole life insurance tends to be more expensive than term life policies. The most common types of permanent life insurance are universal life, whole life and variable life insurance with universal being very popular now.

TERM LIFE INSURANCE PROS

Term life insurance coverage is cheap and easy to buy. Term life is affordable and pays a death benifit to the insured person’s heir. These kinds of policies tend to cost less than other life insurance policies.

TERM LIFE INSURANCE CONS

Term life policies expire and the policy premiums increase with age. Term life insurance policies offer no cash value.

PERMANENT LIFE INSURANCE PROS

Permanent life insurance policies accumulate cash value which grows tax defferd. Also a permanent life policy can give you that peace of mind knowing that upon your death your loved ones won’t be burdend with financial problems.

PERMANENT LIFE INSURANCE CONS

This kind of insurance offers no room for premium flexabilty. The insurance company controls where you can invest your cash value.

So consider this life insurance information before you get your next quote.

By: jeramiyah yahcob

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Tags: Affordable Life Insurance Quote, coverage and cash value, Life Insurance Quote Comparison, life insurance quote information, permanent life insurance, term life insurance, Term vs Whole Life Insurance

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Whole Life Insurance Online Quote - The Benefits Explained

There are important differences between Term and Whole Life Insurance, but don’t think that one is bad and the other is good. It depends on the situation. You get more term insurance than whole life per dollar spent, but this is because whole life is more than just insurance against accidental death, it is also an investment. As such you can figure it into your overall investment planning for retirement.

An Investment

How is it that any life insurance can be an investment when the majority of policies will only pay after someone’s death? Let me share a true story which was told to me by my mother. She stated that my father purchased a whole life policy within 2-3 years after they were married. Until then he had only had a Term Life policy through his work which would only cover just a tad bit more than the burial expenses. This new whole life policy would provide my mother which a bit extra to cover the bills if anything should happen to my father.

They were truly bowled over by the Whole Life policy for not only were they able to make some extra money, but also it made their dreams possible. As the years rolled by, there were four children one after the other. While it was their long cherished dream to buy an acreage in the horse country of Central Florida, they did manage to buy a house in the suburbs. Finally, it looked like opportunity was knocking at their door - a parcel of five-acres did come their way, the pricing was right. The only snag was they had to pay $1,000 as down payment, the balance in monthly payments. Mom felt the monthly payments could easily be met, with my dad’s salary we could certainly make the extra monthly payments, but then the only thought plaguing my mind was where would they go for the $1,000?
My mother drove herself nuts trying to think of a way to come up with the thousand dollars. She just couldn’t find a way, until she remembered the whole life insurance policy that they signed up for years ago. She remembered something about the difference between a whole life policy and a term policy that could help her in her time of need.

The ability to borrow funds from the policy is one of the big benefits of it. She was able to phone the insurance company and learn that the policy had grown to having a cash value of more than $1,000 that could be borrowed against.

You Can Borrow From The Policy

Can it make sense to borrow money from your insurance policy? You bet it can. The interest rate will likely be lower than anything you can get anywhere else such as a home equity loan and you won’t be on a schedule to pay it back. You should at least make regular payments on the interest accrued to keep the loan balance from getting larger. The insurance company won’t determine how much you should pay every month. The amount is up to you, so you can’t be penalized for missing a payment. You will want to repay it eventually though, since the idea behind getting life insurance in the first place was to have the cash value available to you or your heirs at some time in the future. The only reason not to pay it back would be if you used the money to make an even better investment, such as buying property that would appreciate in value.

Mom said that little Whole Life insurance policy really saved the day a few other times too when they needed a few hundred dollars suddenly in an emergency. Just like the little Energizer bunny rabbit, it just kept on giving and giving. A Whole Life insurance policy may ‘literally save your life’ some time when you need money and can’t borrow money from the bank for one reason or another.

If you’re searching for Term Life insurance, be sure to get a Whole Life insurance quote, too. You can obtain one over the internet. Look at each policy type various companies offer, matching them with your individual Term Life insurance needs. After all, an educated consumer is a happy consumer.

By: Daniel Wright

Article Directory: http://www.articledashboard.com

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Tags: Affordable Life Insurance Quote, differences between Term and Whole Life Insurance, investment planning for retirement, Life Insurance Quote Comparison, Whole Life Insurance Online Quote