The Best Life Insurance Options

Life insurance is not something the average person thinks about early on in life. We all think we are invincible, yet we have all heard the horror stories of a family unexpectedly dealing with the early passing of the “bread winner” of the family. Not only does he or she leave grieving family members behind, but there is also often a significant debt load, not to mention the costs of burial.

Why Buy Life Insurance?

Regardless of your age or marital status, life insurance is something to be considered immediately. What most people do not realize is that there is some type of policy available regardless of your budget. In some cases, just a few dollars a month will provide peace of mind for both you and your loved ones.

So, why do most people buy life insurance? Four of the most popular reasons are:

• Funeral costs – today, even an inexpensive funeral will cost over $5,000.

• Business partner protection – just how will your business be affected if you pass on? What type of security can you provide for your partners to help protect them if this happens?

• Securing family finances – how will your family be able to survive without your income? A well-thought out policy can help cover their costs for many years to come.

• Educational costs – the cost of college tuition continues to rise. Whether you have children or a spouse that may need to return to school, your policy can help cover these costs without affecting the daily budget of the household.

What Life Insurance Policy is Best for You?

There are three basic types of policies (please note, there are others, but these are the most popular): Term, Variable, and Whole.

• Term – this is by far the most popular type of policy, mostly because it is the cheapest. You can hardly sit down and watch your favorite TV show without seeing a commercial offering some type of term coverage to a specific age group. This coverage offers a low premium over a specific amount of years. The trade out for the lower premium is that at the end of the policy “term,” the policy is terminated with no return on investment (unless, of course, the insured passes away during the term of the policy).

• Variable – unlike term, variable policies can cover the insured for his or her entire life and provide investment potential. These policies will cost more, but will also increase in value over time. However, because this insurance is tied into investments, a market down turn could actually decrease the value of the policy.

• Whole – this is a popular type of policy with individuals that are financially secure and looking to complement their investment portfolio. This is generally considered a low-risk investment as well as providing an asset that can be borrowed against if need be.

Why Get A Life Insurance Quote Today

Life insurance is something that many of us tend to postpone. After all it is for an eventuality that is not likely to happen today or the next day. This procrastination is what gets many people and their families into trouble. Get a life insurance quote without delay.

The importance of life insurance:

In the event of your untimely demise, your family still has to pay the bills, educate the kids and pay back all the liabilities ranging from short term credit card loans to mortgages. Getting Insurance quotes is the first step in ensuring your family’s financial security.

Even when people get life insurance, many of them don’t buy adequate cover or the right type of insurance products for their needs. Getting the right policy requires some study of the available products in the market and then picking the right policies to meet your financial security goals. Getting a life insurance quote is the best way to start the analysis.

This gives you an idea about the types of products available to you and what they mean in terms of premium payments and benefits.

An overview of the options available:

There are two major categories of policies, the term insurance and whole life insurance. While term insurance has just an insurance component in most cases, whole life insurance has both insurance and savings components.

There are different types of term insurance policies. Each gives you an insurance cover for a certain number of years. Depending upon the policy, some of them give you the option to exit or renew the policy at fixed intervals.

These intervals could range from one to a number of years. Depending upon the type of risk cover they offer, the premium of these policies could increase or decrease as the years go by. Once the policy expires, all the benefits under these policies cease.

Whole life coverage on the other hand covers you for the rest of your life. These policies tend to be expensive when compared to term insurance due to two reasons. One, they involve higher risks and the risk increases with your age.

The second factor is the savings component, or cash value that they include. This cash value accrues throughout the policy period and is paid upon your death to your family.

The type of policy or policies that you should opt for depends upon your circumstances and goals. If you are confident that you will be able to pay all your debts and accumulate enough savings to support your family even after retirement, then term insurance may be enough.

If on the other hand you have dependents needing financial support throughout their lives, like children with special needs or suffering from disabilities, whole life plans could be the best for you. Most people usually have a mix of different types of insurance policies which gives them the optimal cover with minimal premium outflows.

Determining your life insurance requirements:

How much insurance cover is good enough? Again, the answer to this question depends upon your current expenditure, liabilities and anticipated future expenses and liabilities. Your life style and the kind of life that you would like to guarantee to your family also plays an important role. Here are the important factors to consider:

1. Your current monthly income and expenses and anticipated increases in the future. Your coverage should be able to generate funds that can be invested in safe assets to generate similar income levels.

2. The period that your family will need financial support. This could depend upon other earning members in the family and the likely earning members of the future.

3. Take into account your current liabilities like mortgages. Your family should be in a position to pay up the loans in case of your death.

4. Your anticipated future liabilities like the education expenses of your children.

Getting the optimal insurance cover:

The type of insurance and the options that are available to you depend on many factors. These include your age and the amount of premiums that you can afford to pay. Several other factors could also limit your choices to some extent.

The best way to arrive at the optimal mix of life insurance policies is to get a life insurance quote. Online life insurance quotes are the best because they allow you to input certain parameters and pull out the available policies for you from many different providers.

This helps you weigh your options and narrow your choices.

Whatever the method you use, don’t procrastinate. Start now by requesting a life insurance quote. Keep in mind two important things before you decide to buy any policy.

One is the reliability of the insurance company. Check out their ratings and customer service history. The second important thing is to read the terms and conditions very carefully. Life insurance is after all a long term commitment with critical implications. You certainly don’t want to go with the wrong company or pick up the wrong policy.

Cheap Life Insurance Quote Options

Nobody enjoys thinking about their own death, but then death is a definite eventuality for everyone.

Irrespective of how secure your family’s financial situation is today, it makes sense not to underestimate the importance of having sufficient insurance for the lives of the earning members of your family.

Death of a loved one is a very traumatic experience and it is really very unfair and thoughtless to add the anxieties of huge financial problems to that pain.

Make sure that your family is well protected from a financial meltdown in the event of the death of an earning member by having sufficient life insurance cover.

When it comes to life insurance, it is best to get it early. Don’t wait till the worry about mortgages and other financial burdens pile up. It is best to start the life insurance cover before the pressure of family life begins. If you have missed the bus, it is never too late to get the required insurance cover.

Life is not cheap, but fortunately cheap life insurance is available. Picking the right insurance is however not so easy.

There are many companies out there, each with many types of policies and options. Most people have a portfolio of different types of policies to obtain the right cover for their needs.

The best way to get information that will help you decide about the insurance options that you have is to get cheap life insurance quotes online.

You can then experiment with the type of policies and durations available and arrive at a blend that will give you sufficient cover while keeping the premiums manageable. Let us take a quick look at some of the more popular policies available.

Term life insurance:

This type of insurance covers the person for a fixed number of years. Many people prefer this kind of policy to obtain a large insurance cover during their working years. This makes sense because that is the time when a person’s death will have the maximum financial impact on their family.

The insurance cover ends when the term ends or the person dies, whichever comes first. The following types of term insurance policies are available:

1. Annual renewable term insurance:

The policy is valid for one year from the date of purchase and can be renewed at your option till a particular age is attained. The premium usually increases with increasing age due to the increased risk of death.

2. Renewable term insurance:

The policy is initially for a certain number of years. At the end of the term, you have the option of renewing it for another term irrespective of your health situations at that time. Since this kind of policy has an increased element of risk for the company, their premiums are usually higher than the annual version.

3. Level premium term insurance:

In this type of policy the premium is constant for the duration of the policy.

4. Decreasing term insurance:

This kind of policy is designed to provide cover to pay for a specific liability like a mortgage or a long term loan in the event of the death of the insured person. The death benefits under the policy decrease each year as the liability decreases.

5. Increasing term life insurance:

This can either be a part of the policy conditions or could be a rider added to a policy. Basically it means that in the event of the death of the person during the policy term, in addition to the policy value, the premiums paid for the policy will also be returned.

Whole life insurance:

Whole life policies cover the insured person till the end of their lives. There is no fixed end date. Unlike term insurance policies, whole life policies have an investment component or cash value which accumulates over time. Premiums are constant and distributed over a number of years. Such policies usually have provisions for loans.

Universal life insurance:

This policy is a special type of whole life insurance, which gives some flexibility regarding the insurance cover and cash value components.

As you can see there are a number of life insurance cover options, and with different companies having different type of products aimed at different needs, the choices can be astounding.

It makes great sense to get cheap life insurance quotes online which will give you a better idea about the life insurance options available to you.