Life Insurance Quotes: What is Life’s Worth?

2007-03-08 10:33:40

( Insurance )



A life insurance is a type of insurance where the beneficiaries of the policy receive a cash amount in the event of the insured’s death. The policy holder is the person making the insurance purchase, but that does not automatically make the person the insured.

THE INSURED AND THE OWNER

You may purchase a life insurance for yourself or for someone else. In the first scenario you are both the policy holder and the insured; while the second case involves two different people.

Life insurance quotes are the premiums or payments that you make on a regular basis to keep the insurance active. Life insurance quotes will depend largely on the amount that you want the beneficiaries to receive upon maturity, but it is affected to a great extent by the life expectancy of the insured.

If you are relatively young, then you will generate a life insurance quote that will be lower than the life insurance quotes that older people will receive. The higher life insurance quote is based on the presumption that older people have generally lower life expectancies, and thus will be paying over a shorter period of time. The lower life expectancy of older people is based on the health complications that the normal aging process brings.

TERMS AND CONDITIONS

Life insurance quotes will also differ based on the type of life insurance that you plan to purchase. The more important factors that affect the insurance quotes are: the policy’s face value or the amount the beneficiaries will receive; the premium rates or the cost of payments to be made; and the term or the period of time the insurance is valid.

In so far as term is concerned, there is the temporary and the permanent life insurance. The temporary insurance is also referred to as term life insurance. In a term life insurance, the coverage is good only for a specific period of time. It is temporary but renewable. The life insurance quotes in this instance changes with each renewal.

The good thing about term life insurance as compared to a permanent one is that you have the option to renew the coverage but change the terms and conditions of the policy to adapt to your changing needs. This is where the variances in the life insurance quotes will come in. Insurance quotes differ because life is constantly in flux.


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