Learning the Basics of Life Insurance
Everyone knows that they need some form of life insurance to provide financial security to their loved ones in the event of their death. We also know that selecting the right life insurance can be a confusing process.
There are so many different types of life insurance available depending on your own individual needs. Plus there are large price differences for the same coverage from different life insurance companies. A salient example: A quote for a 40-year-old male in 2008, who is looking for a 20-year term life insurance policy found that premiums range from $27 to $189 a month, depending on the type of plan and the company providing the coverage.* We can simplify the process of finding the right life insurance coverage for you at a price you can afford. All you need to do is request a quote here.
Two Types of Life Insurance
There are basically two types of life insurance policies you can purchase; term and permanent. A term life insurance policy has no cash value account while a permanent life insurance policy gives you a return on your investment in the form of a cash value account.
A life insurance policy with a cash value account is a policy that basically accumulates cash value over the life of the policy. Many people purchase life insurance policies with a cash value and use it as a savings plan for retirement, even though these types of life insurance policies are generally more expensive than the average term policy.
- Term life insurance is the easiest to understand and the least expensive to purchase. Term life insurance provides your loved ones with death benefits but has no cash value account. This type of life insurance is issued for a specific period of time; normally 10, 15, 20, or 30 years. Your policy will renew each year, and the premiums you pay could increase, depending on the type of term life insurance policy you purchase.
- Permanent Life Insurance is more expensive than a term life insurance policy, but includes a cash value account, a fixed death benefit, and level premiums during your lifetime for as long as you pay your premiums. There are many forms of permanent (aka whole life insurance) policies available. Let us help you find the permanent life insurance policy that meets your family's needs.
* http://www.bankrate.com/brm/news/insur/20020201a-3.asp?caret=5a