Life Insurance Quote: Putting Value on Life

2007-03-08 10:33:40

( Insurance )



A MAJOR DECISION

Apart from taking a home mortgage, buying a life insurance is probably one of the most important financial commitments you can ever make. Buying life insurance is a decision whose effects are far-reaching and long-term.

Given the importance of a life insurance, the first step one should take when buying life insurance is to shop for a life insurance quote. A life insurance quote is crucial because your regular premiums and the face value of the policy depend on the life insurance quote.

Life insurance is a legally binding agreement where the insurer gives a cash payout to the beneficiaries of the policy in the event of the insured’s death. The maturity of the life insurance is contingent upon the demise of the insured.

LIFE EXPECTANCY

Because death is inevitable, a life insurance quote is generally dependent upon your life expectancy. A person with longer life expectancy will generate a lower life insurance quote than a person with a shorter life expectancy. This is because a person who is expected to live longer will pay life insurance premiums over a longer period of time as well to keep the policy active.

A life insurance quote is also affected by the type of life insurance you are purchasing. A term life insurance provides coverage for a specific length of time, and is renewable upon the expiration of the coverage. Term life insurance quotes depends to a great extent on the length of the insurance you take and the face value of the policy.

Term life insurance is more flexible in the sense that you are not tied to one life insurance policy. Upon the expiration of the coverage, you have the option to renew if you like the terms or opt for an entirely different insurance arrangement which is more suitable for you and your loved ones.


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